Compare 5 year fixed rate mortgages

Why a five year fixed rate mortgage could be an option to consider.

Last updated:

Your home may be repossessed if you do not keep up repayments on your mortgage.
Locking in a rate for five years means your repayments won’t change during this time. This allows you to plan ahead by knowing exactly how much you need to repay every month. Five year fixed rate mortgages are a common type of loan and are offered by most lenders.

Compare a wide range of mortgages with a five year fixed rate

L&C Mortgage Advice

Speak to an adviser

Talk to a fee-free mortgage adviser from our partner L&C. Open 7 days a week, 'til 8pm weekdays. Call free (mobile or landline).

L&C Online Journey

Online mortgage finder

Complete our form to access personalised information on mortgages to suit your particular needs.

Mortgage Comparison Habito

Browse mortgage rates

Fast and simple comparison of today’s best rates and overview of mortgage options from a range of UK lenders.

The finder.com mortgage service is provided by London & Country Mortgages (L&C), Beazer House, Lower Bristol Road, Bath BA2 3BA.
L&C is authorised and regulated by the Financial Conduct Authority (reg no. 143002). Please note the FCA does not regulate most buy-to-let mortgages.

Best five year fixed mortgage rates in the UK in 2018

Finding the best mortgage rate is tricky because many deals start with a low fixed rate, which then becomes a high, variable rate after a set period of time. This means that you can end up paying more than you expected once you start paying the variable rate.

Our table shows the interest rates for a property worth £250,000 with a mortgage amount of £200,000 over a 25-year period, correct at December 2018. The initial rates shown are fixed for up to five years and after that, the variable rate begins. These rates are based on an 80% loan-to-value ratio (LVR).

Explore further and find the best overall rate at London and Country.

LenderInitial rateReverts to
Metro Bank2.04%4.25%
TSB2.04%4.24%
Metro Bank2.09%4.25%
Accord Mortgages2.09%4.99%
Barclays2.13%4.24%
Digital Mortgages2.09%4.00%
Nationwide2.14%4.24%
Hanley Economic Building Society2.14%5.44%
Principality Building Society2.15%5.05%
These rates were taken on the 18 December 2018 from L&C.

What is a five year fixed rate mortgage?

A fixed rate mortgage locks in your interest rate for a set period of time – in this case, five years. During the course of the five-year term, your repayments won’t change. This is in contrast to variable interest rate mortgages, where the interest rate can change according to your bank’s response to economic factors and the Bank of England’s base rate.

A fixed rate mortgage is ideal for those who can’t afford increasing monthly mortgage repayments and want the peace of mind of knowing how much their repayment will be month-to-month so they can budget their spending. A five year fixed rate mortgage is also appropriate for investors who need to keep track of their cash flow.

How do these mortgages work?

When you sign up for a five year fixed rate mortgage, your lender will lock in the interest rate. Once the fixed rate term ends, your mortgage will either revert to the lender’s standard variable rate, or you’ll be offered the option to fix your mortgage for a new period.

With fixed mortgages, you generally can’t make additional repayments during the fixed term. If you are permitted to make additional repayments, these are usually limited to a certain amount per year. If you do repay your mortgage within the fixed five years, you may need to pay an early repayment fee.

Fixed rate mortgages also tend to have fewer additional features. For example, you may not get the option of an offset account. Some fixed mortgages do offer these features, but it’s not the norm.

What types of five year fixed rate mortgages are available?

Fixed rate mortgages are fairly basic products without many additional features. However, there can be minor differences depending on your circumstances.

Full-featured mortgages

Full-featured mortgages come with a complete range of features including offset accounts and the option to make additional repayments. However, these types of mortgages do tend to attract higher fees, and few fixed rate mortgages offer these features.

Basic mortgages

These mortgages are foundation mortgages. They don’t have the frills and additional features that other mortgages have, but they do offer competitive rates and fees. Basic mortgages are a good way to help you save money, especially if you don’t require any additional features.

Bad credit mortgages

It can be difficult for those with a bad credit rating to be successful in their mortgage application. Fortunately, there are fixed rate mortgages available for those with bad credit. However, you may be charged a higher rate or fees with this type of mortgage to compensate for your credit risk.

Mortgages for the self-employed

These are typically referred to as self-employed mortgages. As the name suggests, they are for those who are self-employed or investors who are unable to provide proof of income through pay slips and bank statements. Instead, self-employed borrowers will have to provide an SA302 form, which is how you declare the amount of money you’ve earned to HMRC.

How to compare mortgages

Once you have decided that a five year fixed rate mortgage is right for you, there are some easy ways to compare the mortgages available to help you select one that suits your needs. You should consider your lifestyle, your income and how you plan on using your mortgage to decide what features are important to you.

A good baseline way of comparing the various mortgages available is to examine the following elements of each mortgage:

  • Interest rate. The interest rate you lock in will have a direct impact on your repayments so it’s worth taking the time to compare your options and find a good rate.
  • Fees. This includes the establishment and ongoing fees applicable to the mortgage.
  • Term. This is the length of time that you will have the mortgage for. The longer the term, the more you’ll pay in interest overall, but a longer term will typically mean lower monthly repayments.
  • Features. These include the interest and comparison rates, the interest type, the term, the repayment frequency, whether there’s an offset account and the ability to make additional repayments.
  • Overall amount repaid. This is the total amount you’ll pay back over the course of your mortgage.
  • Repayments. How much you’ll repay each month and each year.
  • Early repayment options. Know whether you can put any extra money towards your mortgage without any additional fees.

Pros and cons of a five year fixed mortgage

Pros

  • Repayment security. Your repayments won’t change for five years. This is much longer than most other fixed rate mortgages and can give you extra peace of mind.
  • Easier to budget. When you know what your repayments will be, budgeting becomes much easier. You can budget far in advance and don’t have to worry about your monthly repayments changing. If you’re budgeting for a holiday or a new car, you won’t get hit with a last-minute increase in repayments.
  • Immunity from rate rises. If you’re locked into an interest rate and the Bank of England raises the interest rate, you will effectively have a lower interest rate than most variable mortgages.

Cons

  • You’ll have to stick it out for five years. Five years is quite a long time. If you were planning on selling your property or moving on, this type of mortgage will not be appropriate for you. A five year fixed rate mortgage may also not be appropriate for people fixing their mortgage for the first time.
  • Exit fees. Fixed rate mortgages tend to have high fees if you exit your mortgage during the fixed term, so it’s important to make sure you stick with the mortgage during the fixed period.
  • Lack of flexibility. Fixed rate mortgages tend to have less flexibility and fewer features when compared to variable rate mortgages.

Things to keep in mind with a five year fixed rate mortgage

It’s important to ensure you don’t exit the mortgage during the five year fixed period. It’s also important to avoid making extra payments if your lender doesn’t permit them. Otherwise, you may be hit with additional fees.

Frequently asked questions

5 year fixed rate mortgages at a glance

  • No matter if interest rates rise, your repayments each month for the 5 year term will stay the same.
  • Review the initial mortgage rate and the lender’s standard variable rate to find the lowest five year fixed rate mortgage deal.
  • Keep in mind that when it comes to long-term fixed mortgages, interest rates are often higher.
  • Want to remortgage during your term? You will likely have to pay an early repayment charge.
  • Think about arrangement fees as the best value deal may not be that with the lowest rate.
  • Representative example

    Based on a 5 year fixed term mortgage with an initial rate of 2.71%, lender fees would cost roughly £510, with 60 monthly instalments of £781.37 to pay it off.

    Start your mortgage application

    Habito

    Habito

    Save £1,000s on your mortgage. Applying is quick & easy with Habito. Get a quote online in minutes.
    Mojo Mortgages

    Mojo Mortgages

    The Mojo mortgage calculator compares rates in less than 1 minute. A free online mortgage broker.
    L&C cobrand

    L&C

    The UK's largest fee-free mortgage broker & adviser. No hidden costs. L&C compares rates from over 80 lenders.

    We exist to help you find better. The offers we've compared on this page are from a range of products whose details we can track; we don't cover every product on the market...yet. Unless we've indicated otherwise, products are shown in no particular order or ranking. The terms "best", "top", "cheap" (and variations of these) aren't product ratings, although we always explain what's great about a product when we highlight it; this is subject to our terms of use. When you make major financial decisions, it's wise to consider getting independent financial advice. Always consider your own financial circumstances when you compare products so you get what's right for you.

    Was this content helpful to you? No  Yes

    Ask an Expert

    You are about to post a question on finder.com:

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • finder.com is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked

    Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

    By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

    Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
    Go to site