How long should I fix my mortgage for?

Last updated on 4 September 2024 by Claire Flynn

In this article:

• How long can you fix a mortgage for?

• Should I fix my mortgage for two or five years?

• Can I fix my mortgage for one year?

• Should I fix my mortgage for ten years?

• What's the maximum amount of time you can fix a mortgage for?

• Are fixed-mortgage rates falling in 2024?

• Should I go for a fixed-rate mortgage?

How long can you fix your mortgage for? 

First things first, when it comes to fixing your mortgage, what deal lengths are available? 

Well, the answer is that there are quite a lot of options. The most common fixed-rate mortgage deal lengths you’ll hear about are two and five years. Often people debate whether to go for a shorter term two-year fix, or a longer term five-year fix. 

But, you may also be able to fix your mortgage for three, seven or 10 years. Sometimes you may even find longer fixed deals, or those of only one year (although these are usually pretty rare). 

John Fraser-Tucker, Head of Mortgages at Mojo Mortgages, said: “We often talk about lengths of fixed-rate deals in years, but some deals have end dates that can be longer than their namesake . It’s important to be aware of this as some two-year fixed-rate deals, for example, actually last for 28 months or so. 

“Check the terms and conditions of your offer so you know exactly how long you are locking your rate in for.” 

Should I fix my mortgage for two or five years? 

Two and five-year fixed-rate mortgages are not the only options available, as explained above. However, they do tend to be the most popular choices.

Of the applications we submitted for Mojo customers in July 2024, 53% were for two-year fixed-rate mortgages while 33% were for five-year fixed-rate mortgages. 7% were for three-year fixed-rate mortgages. 

In the current market, with mortgage rates showing signs of falling but remaining higher than a few years ago, two-year fixed-rate mortgages have become a bit more popular. This has meant that interest rates tend to be higher for two-year deals compared to five-year deals (traditionally longer term fixes have been the more expensive option). 

The table below shows the percentage of Mojo applications for two and five-year fixed-rate deals over the past year.

We also show the average rate for both products on the last day of the specified month. The average rate is based on Mojo analysis of products available from five of the biggest UK lenders at the time (Santander, Nationwide, Natwest, Halifax and HSBC). 

• The proportion of five-year fixed-rate mortgages has increased compared to last year, after hitting a low at the end of 2023. This is likely because rates were much higher last summer so people were hesitant about getting a longer term deal. 

• The proportion of two-year fixed-rate mortgages has also increased slightly compared to last summer, although it has declined compared to the winter months. The popularity of the shorter term deals in the winter, might have been due to rates reducing - people might have wanted to fix as they were dropping, but opted for a shorter term deal in the hope that they may reduce further in the next two years. 

• The average rate for a five-year fixed-rate deal has remained consistently lower than a two-year fixed-rate deal over the past year.

Advantages and disadvantages of two-year fixed rate mortgages

• You can remortgage to another deal without paying early repayment charges (ERCs) after two years, which is a positive if rates fall by then 

• If you want to move in a couple of years, it also offers a bit more flexibility in terms of getting a new mortgage

• If you do decide to remortgage while you are still locked into the deal, usually the ERCs cost a bit less than with a longer-term deal

• If rates rise in the next couple of years, you might face higher payments when you remortgage

• Everytime you remortgage, you generally face new fees, so a shorter term deal can mean paying these more frequently 

• In the current market, rates for two-year fixed-rate mortgages tend to be higher than five-year fixed-rate deals

Advantages and disadvantages of five-year fixed-rate mortgages

• With a five-year fixed-rate deal, you know your payments will stay around the same for longer than with a shorter term deal

• You don’t have to remortgage as often as with a shorter term deal, meaning less fees 

• Rates are currently a bit lower for five-year fixes compared to two-year fixes

• You are locked into the rate for longer, which means if rates fall during your deal, you may end up paying more interest overall than if you’d been on shorter term deal

• If you choose to remortgage during your deal, the ERCs are normally a bit higher than with shorter term deals 

• If you want to move before your deal ends, you may have to pay ERCs to get a new mortgage if you don't port your existing mortgage

It’s important to remember that while two-year and five-year fixed-rate mortgages tend to be the most popular, there are other options available, a couple of which we’ll look at below.

A mortgage broker can help explain all the different options to you, so you can make an informed choice on what deal length is right for you.

Can I fix my mortgage for one year? 

One-year fixed-rate mortgages are rare, but not non-existent. In fact, Santander launched a one-year fixed buy-to-let mortgage earlier this year. 

In terms of residential mortgages, there are a couple of lenders offering them - Precise Mortgages and Kensington Mortgages*. But as the options are limited, they tend to come with higher interest rates. And there may be additional criteria requirements involved - you’ll need to speak to a mortgage broker to find out if it’s an option for you. 

And while a one-year fix is appealing in a rate reducing market, remember that there are disadvantages to a one-year mortgage. For example, if rates start to rise again, you may end up on a higher rate when you come to remortgage.

Should I fix  my mortgage for 10 years? 

You can fix your mortgage for 10 years. While not usually as common as two or five-year fixed-rate mortgages, there are several lenders who offer these deals, including high street banks like Nationwide*. 

In the current market, generally both two-year and five-year deals offer more competitive rates than the 10-year deals available, however.

This could be due to the fact that rates could change drastically in a decade, which lenders need to account for in their pricing. 

The main benefit of a 10-year fixed-rate mortgage is the length of time you can be confident that your rate won’t change and your payments won’t increase. Of course, it does mean you could be locked into a high rate for a long time if rates do fall. 

What’s the maximum amount of time I can fix my mortgage for? 

While 10 years tends to be the maximum deal length that most lenders offer, there are some that may offer longer fixes. 

For example, Kensington Mortgages currently has a fixed-deal that lasts for a full 25-year mortgage term*. But the rate on this is much higher than other fixes, and there are likely certain eligibility requirements that would need to be met.

Speaking to a mortgage broker can help you understand the maximum fixed-rate deal length that suits you and your circumstances.

Are fixed mortgage rates falling in 2024?

Fixed mortgage rates have started dropping in the last month or so, following the Bank of England base rate reduction.

The average fixed mortgage rate across five of the biggest lenders (Santander, Nationwide, Halifax, HSBC and Natwest) currently stands at 4.7%* compared to 4.8% at the start of July. But it has fallen significantly since the end of August last year when it was 5.9%.

In January of 2024, it was also 4.7%. But due to rate increases throughout the spring, it rose a little before starting to come down again this month.

John Fraser-Tucker, Head of Mortgages at Mojo, said: “Fixed mortgage rates have fallen in August, which is positive news for borrowers. Unfortunately, there is no guarantee that rates will continue to fall over the next few months, which is important to bear in mind if you’re considering waiting for rates to fall further before you fix your deal.

“If you are due to remortgage or looking to buy in the near future, it’s worth speaking to an expert now to find out what your options are. If rates do fall again before your new deal starts, you might be able to switch to a lower rate.”

Should I go for a fixed-rate mortgage in 2024?

So we’ve covered lengths of fixed-rate mortgages, but it is worth considering that a fixed deal isn’t your only option. There are variable-rate mortgages as well.

The key difference between a variable and a fixed-rate mortgage is that fixed-rate mortgages have an interest rate which stays the same for a set amount of time. Variable-rate mortgages have interest rates that are subject to change.

The main advantage of a fixed-rate mortgage is peace of mind that your payments will remain roughly the same over the deal period. The disadvantage is that if rates fall while you’re on a fixed deal, you face paying significant ERCs if you want to remortgage to a cheaper deal.

In a rates reducing market, like we’re seeing currently, some might consider a variable mortgage in the hope that they can take advantage of rates continuing to decline. But if rates start to increase then you’ll face higher payments.

In July 2024, 95% of Mojo customers submitted applications for fixed-rate mortgages. Just 5% opted for a variable deal (specifically tracker mortgages).

Whether you go for a fixed-rate mortgage or variable-rate mortgage really depends on your budget, preference and attitude towards risk. A mortgage advisor can help you decide which is right for you.

*Rates and details of products available from selected lenders are correct as of 30/08/24. These are subject to change and may not be available when you are ready to submit an application.