5-year fixed-rate mortgages
Looking for longer term stability and peace of mind when it comes to your mortgage payments? You might want to consider locking in your rate for longer.
We dive into the pros and cons of a five-year fixed-rate mortgage.
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Last reviewed by John Fraser-Tucker on 22 May 2025
What is a 5-year fixed-rate mortgage and how does it work?
A five-year fixed-rate mortgage means the interest rate you pay won’t change for five years. This keeps your monthly payments consistent for the duration of your deal length too.
Half a decade is a long amount of time for rates to stay the same. And, let’s face it, they probably won’t. But any volatility in the mortgage market or changes to the Bank of England base rate won’t impact you until you come to the end of your five-year fix.
Are 5-year fixes popular?
Yes, 5-year fixes are one of the most popular mortgage products available. According to our own customer records, 38% of applications submitted in March 2025 were for 5-year fixes.
5-year fixed-rate mortgages usually grow in popularity when rates are starting to fall, as borrowers look to lock in favourable rates for a longer period of time. We saw comparatively low levels of 5-year fixes back in 2023, as home owners were reluctant to commit to a high interest rate for five years and likely hoped that rates might fall within that time.
“5-year mortgages offer extended security compared to shorter-term fixes, while striking a balance between longer-term fixes such as 10-year options that often come with higher interest rates.”
Helen Lovell, Mortgage Expert
Advantages of a 5-year fix
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Works with your medium-term goals. You’ll know exactly what your interest rate and mortgage payments will be for five years, ideal for those seeking stability for the foreseeable future.
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Avoid rate turbulence. A lot can happen with interest rates over five years - but yours will stay exactly the same. This can end up saving you a lot of money if rates do rise during your fixed period.
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Perfect for planners. If you like to keep a tight rein on your budget, knowing exactly how much your mortgage payments will be for the foreseeable can help you manage your money.
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Remortgage less frequently. You’ll only have to remortgage every five years, which can save you time, money and hassle.
Disadvantages of a 5-year fix
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It’ll cost you if rates drop. If interest rates fall during the five-year term, you’ll be left paying your initial higher rate until the fixed period ends.
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Higher early repayment charges (ERCs). If you need to change mortgages for any reason within five years, you’ll likely face significant early repayment charges.
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Potentially higher rates. 5-year fixed-rate mortgages are normally more expensive than variable rates and, traditionally, more expensive than shorter-term fixes too. Though this hasn’t been the case in recent years, the industry is reporting that two-year fixed rates are now falling at a swifter rate than five year fixes.
Is a 5-year fixed rate mortgage a good idea for me?
A long-term five-year fix might be a good option for you if:
You prefer stability over risk. You might miss out on potentially lower rates if they fall during your fix, but you feel the security of consistent payments makes it all worthwhile.
You’re planning to stay put. You’re not planning to move, make hefty overpayments or pay off your mortgage entirely within the next five years as doing so could incur hefty ERCs.
You’re working to a budget. If you’d struggle to absorb higher repayments if your rates were to change in the near future, a longer-term fix could help with budgeting.
You’re not concerned about interest rates falling. You might not think interest rates will drop significantly or perhaps the peace of mind of a longer fix is simply worth the extra cost.
Average 5-year fixed mortgage rates in the UK
The average five-year fixed rate can be broken down by loan-to-value ratio. Generally speaking, the greater the deposit you put down, the more competitive rates you can access.
The table below shows the average rate for five-year fixed-rate mortgages available from five of the biggest UK lenders (Santander, Nationwide, Natwest, Halifax and HSBC). However, it’s worth noting that the rate you’ll be able to access will depend on other factors too such as your individual circumstances, credit history and your eligibility against lender criteria.
Loan-to-value | Average 5-year fixed-rate mortgage |
|---|---|
95% | 5.1% |
90% | 4.7% |
85% | 4.4% |
80% | 4.5% |
75% | 4.3% |
70% | 4.3% |
60% | 4.2% |
*Data accurate as of 24th April 2025
Is now a good time to fix for five years?
The mortgage market has been volatile over the past few years to say the least. And we’re not out of the woods yet. The Bank of England base rate, inflation, employment figures, economic growth and global economic trends can all have an impact on mortgage rates.
However, some industry analysts predict that mortgage rates may start to fall gradually over the next few years. This is not guaranteed, though, and there’s no way to know how significant any rate changes will be.
Deciding to lock in a five-year fix now could work in your favour if rates rise or stay roughly the same for the duration of your deal length. However, if rates do fall, you won’t have the opportunity to remortgage onto a more favourite rate for five years unless you opt to pay early repayment charges. Still, for many, it’s worth paying a little extra for the peace of mind a longer-term fix brings.
Hear from our experts
“No one wants to get stuck with a high rate for five years if rates do start to go down but, similarly, customers should also take into account the cost and hassle of remortgaging. You’ll have to remortgage more often with a shorter term fix, so you really do need to consider what the priority is - convenience, overall cost, longer-term stability or flexibility.”
Stuart Bowman, Mortgage Expert
What are my other fixed mortgage options?
2-year fixed-rate mortgages
Let’s break down exactly what a 2-year fixed-rate mortgage is and whether it might be the right choice for you.
3-year fixed-rate mortgages
A 3-year fixed-rate mortgage locks in your rate for three years, so you’ll make equal monthly payments until your deal ends.
10-year fixed-rate mortgages
Though it's rare for homeowners to choose a 10-year fix, it is possible. We explain the pros and cons of a 10-year fixed-rate mortgage.
Compare 5-year fixed-rate mortgage deals
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FAQs
You’ll be automatically shifted to your lender’s standard variable rate (SVR) when your five-year fixed-rate deal ends. This is likely to be much more expensive than other deals available on the market, as the SVR is the lender’s default rate.
To avoid this, most borrowers tend to remortgage. You can usually start to look for new deals around three to six months before your current one ends. And, even if you've locked in a mortgage rate, you're often not completely tied to it until the deal officially begins. You’ll likely be able to switch rates if a more competitive mortgage offer surfaces in the meantime.
Five-year fixes are traditionally more expensive than their two-year counterparts, though in recent years that hasn’t been the case. That’s likely because two-year fixes are more popular when rates are high (as borrowers hope to move to a lower-rate deal in a few years’ time) which drives up the cost. It may also partly be because lenders anticipate that rates will fall, which naturally makes longer fixes less of a risk.
The market is starting to see a shift in this recent trend, though, and some two-year fixes are now cheaper than five-year options. This is likely because lenders are offering you security for a longer period, and there’s greater risk that market interest rates could change during that time.
The proportion of customers applying for selected products is based on Mojo Mortgages’ internal customer application data.
Rates and details of products available from selected lenders are correct as of 24 April 2025. These are subject to change and may not be available when you are ready to submit an application.