Compare 5-year fixed-rate mortgages

Whether it’s your first home, a remortgage or home move, we can help you find a five-year fixed-rate mortgage that’s right for you. Here‘s our guide to what you need to know.

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What is a 5-year fixed-rate mortgage?

A 5-year fixed-rate mortgage is a loan that sets your interest rate for five years - no matter what happens to the Bank of England interest rate, your monthly payment will stay the same.

Once those five years are up, your mortgage will usually transfer to the lender’s standard variable rate (SVR) unless you switch to a different deal or provider. The SVR tends to be higher than a fixed rate, so your payments could go up.

A fixed-rate mortgage can last for fewer than five years, or longer.

Your home may be repossessed if you don’t keep up with repayments on your mortgage.

Top tip

When you compare five-year mortgages, it’s important to look at the annual percentage rate of charge, known as APRC, as well as your initial fixed rate. It gives you a better idea of the overall cost of the mortgage because it includes all fees and charges.

What are the advantages of a 5-year fixed-rate mortgage?

Depending on your circumstances, here’s why it could be worth fixing your interest rate:

You’re protected against rate hikes

One of the biggest reasons for taking out a fixed deal is protection against interest rate rises. Even if the Bank of England raises the base rate, or your lender puts up its own SVR, your mortgage payments won’t change for five years.

You can better manage your budget

A fixed-term mortgage makes it easier to look after your household finances as you’ll have greater certainty over your monthly outgoings. Knowing your mortgage payment won’t change for five years can also help you to make other financial plans.

You could pay fewer fees (and reduce your admin)

If you opt for a shorter fixed term such as two or three years, you’ll have to remortgage more frequently to avoid sliding onto a lender’s SVR. This can be expensive with arrangement fees and costs to pay each time.

What are the disadvantages of a 5-year fixed-rate mortgage?

A five-year fixed-rate mortgage won’t be for everyone. Here are the downsides to consider:

You may pay higher interest rates for longer

If you take out a fixed-rate deal but interest rates then fall, you could be stuck paying a higher rate for up to five years. This could leave you paying more overall than if you had chosen a discounted or tracker mortgage, or a shorter-term fix such as two years.

Exit fees can be expensive

If, for whatever reason, you decide you want out of your fixed-term rate before the five years are up – perhaps because you move house – most mortgage lenders will charge a penalty.

Early repayment charges (ERCs) can be between 1% and 5% of the outstanding mortgage balance, depending on the amount of time left on your fixed rate period. This could cost you thousands of pounds.

It’s worth checking whether your mortgage is ‘portable’ – in other words, can you take it with you if you move home during the fixed-rate period?

What is the average 5-year fixed-rate mortgage today?

As of April 2025, you can find interest rates on a typical five-year fixed rate mortgage at around 4-5%. But what you’ll pay also depends on your own finances and buyer status, including how much deposit you put down and whether you’re remortgaging or a first-time buyer.

While the Bank of England base rate doesn’t directly affect fixed-rate mortgages once you’re locked in, it does influence initial borrowing rates.

Changes to the base rate, along with the overall economic climate, can affect the cost of mortgages for lenders. This is typically passed on to you as a borrower and reflected in the rates you pay.

With the Bank of England’s efforts to control inflation, fixed rates now are considerably higher than they have been for much of the past 15 years.

Although mortgages are regulated by the Financial Conduct Authority (FCA) to make provision of financial products fairer, lenders still base their pricing on risk.

You can compare mortgages to find our best 5-year fixed rate mortgage deals.

How do I choose the best five-year fixed-rate mortgage for me?

The first step is to check five-year fixed mortgage rates. You can see the impact different rates of interest would have on your monthly payments by using our mortgage calculator.

When comparing five-year deals, make sure you include product fees and other charges. Some of the lowest fixed-rate mortgages have high arrangement fees. Always look at the APRC to help you work out the overall cost of your mortgage.

And check what you’d have to pay if you want to leave your mortgage early. For example, what happens if you want to remortgage or pay off the mortgage altogether? Even if the second scenario seems unlikely right now, it’s useful to know in case your situation changes.

Should I choose a 5-year fixed-rate mortgage?

You should base your decision on whether to fix – and for how long – on your personal circumstances. While you can try to second guess what will happen to interest rates in the coming months and years, it’s often better to focus on your own financial needs and outlook.

The more you value the certainty of a fixed monthly sum for your budget, the more you may well be inclined to lock in for longer. This could especially be the case if you don’t have any plans to move house in the foreseeable future.

If you think you might not stay in your current property for long, or you’re happy to risk the ups and downs of interest rates, a shorter fix or variable mortgage could be a better option.

When you’re making big decisions such as this, it’s worth speaking to a mortgage broker. Our partners London & Country Mortgages Ltd (L&C) ** can provide you with fee-free mortgage advice.

Go to L&C Mortgages

**London & Country Mortgages Ltd (L&C) are a multi-award-winning mortgage broker with over 20 years’ experience in helping people secure their perfect mortgage. Advice is provided by L&C, who are authorised and regulated by the Financial Conduct Authority (143002). L&C are not part of Compare the Market Limited. Compare the Market receive a % of the commission that our partner London & Country earns. All applications are subject to lending and eligibility criteria. L&C will not charge you a broker fee should you decide to proceed with a mortgage.

How much deposit do I need for a 5-year fixed-rate mortgage?

Most lenders will require a deposit of at least 10% of the property’s value before they’ll offer you a mortgage.

According to HM Land Registry figures, the average UK house price in February 2025 was £268,319, so if you’re saving for a 10% deposit you’d need roughly £27,000. If you want access to the best mortgage rates on 5 year fixed deals, you’ll likely need a deposit of more than this.

If you don’t have a large deposit, you might be eligible for one of the Government’s Affordable Home Ownership schemes. These typically require a smaller deposit.

Find out more about saving for a mortgage deposit.

How your loan-to-value ratio will impact your fixed-rate mortgage

As a rule, the higher your loan-to-value (LTV), the higher your interest rate and monthly repayments will be. The LTV is the percentage of a property’s value that needs to be borrowed in order to buy it.

So, if you have a 20% deposit, the LTV will be 80%. The greater your deposit, the lower the LTV will be. Increasing your deposit and lowering the LTV could mean a better interest rate and lower monthly repayments for the first five years.

The table below illustrates how different interest rates and LTV ratios affect the cost of a typical five-year fixed rate mortgage on a £250,000 home. It’s only a basic example as it doesn’t account for initial product fees, but it should give you some idea of the costs involved:

LTV	90%	80%	75%	60%
Interest rate	4.55%	4.17%	3.95%	3.81%
Loan amount	£225,000	£200,000	£187,500	£150,000
Monthly cost	£1,257	£1,075	£985	£776

Your LTV ratio will change over time as you gradually pay off your mortgage and the value of your property changes.

Did you know?

It’s still technically possible to get a 95% LTV mortgage, but in the current economic climate the chances of finding one are very slim. The Government-backed Mortgage Guarantee Scheme (MGS) has helped to increase the supply of 95% mortgages, although the scheme has an end date of 30 June 2025.

However, talks between lenders and government officials aim to keep a version of MGS in place after this date. If there are any key changes, we’ll let you know and update our guide.

What other mortgage options do I have?

Here’s a look at some other mortgage options and how they compare to a 5-year fixed-rate mortgage:

Two-year fixed-rate

A two-year fix offers greater short-term flexibility, but you’ll usually have to pay a product fee every time you remortgage. Product fees tend to be higher for shorter-term fixed-rate deals, so it could outweigh the benefit of a lower interest rate.

You’ll also need to sort out your remortgage in around 20 months’ time, to be sure another new deal is ready to go as soon as your current one ends. However, the savings could make it worthwhile.

Three-year fixed-rate

Three-year fixes might be more suitable if you’re set to stay in your property for the time being, but are likely to consider a move within the next few years. Perhaps you hope to start a family or have an eye on more space and a garden.

\This option allows you to rethink your mortgage after three years and see whether you could benefit from a new deal.

10-year fixed-rate

While a 10-year fix gives you more security for longer, it also means you’re locked into the same deal for a decade. Interest rates also tend to be higher than for a 5-year fixed-rate mortgage as you have more security for longer.

Keep in mind that it’s very difficult to predict what will happen to the economy over the next 10 years. If interest rates fall to a low level - and then stay low - you may end up paying a high price for your greater security.

Tracker mortgage

A tracker mortgage is a variable mortgage that follows the Bank of England base rate. This means that your interest rate and monthly payments could go up and down.

When the base rate is low and stable, a tracker mortgage could offer good value. But when base rates are rising your interest rate will rise too, unlike with a fixed-rate mortgage.

A tracker mortgage can typically last between one to five years, although lifetime trackers can last as long as your mortgage. If you’re looking for more certainty in uncertain times, then a five-year fixed mortgage might be a better answer.

Discount mortgage

A discount mortgage is another type of variable mortgage, offered at a discounted rate to the lender’s standard variable rate (SVR).
For example, if the lender’s SVR is 6% and the discount they’re offering is 2%, the interest rate you’ll pay is 4%. The discount is usually for a short period, often around two years.

Be aware that SVRs differ between lenders, so a bigger discount from one doesn’t necessarily mean a lower interest rate and a better deal. You should check the lender’s SVR as well as the advertised APRC for an overall cost comparison.

If the lender’s SVR increases, your rate will also rise. If the lender in our example above raised its SVR to 7%, your 2% discount would remain - but you’d now pay 5% interest rather than 4%.

Remember that for all types of mortgages, the actual interest rate you’re offered will depend on how much you want to borrow, loan-to-value ratio and credit score.

What information do you need to find the best five-year fixed-rate mortgage deals?

Once you start looking for the best 5-year fixed mortgage rates, it’s a good idea to pull together the paperwork you’ll need for your application. This is likely to include:

Proof of name and address – typically, a full UK driving licence or passport, as well as utility bills
Bank statements for the past three to six months (up to three years of accounts if you’re self-employed)
Payslips for the past three months
P60 form from your employer
Tax form SA302 if you’re self-employed
Proof of deposit you’re putting towards the mortgage
Proof of any benefits you receive.

Lenders need to know that the mortgage repayments are affordable and will want proof you can keep up with payments. Gather as much information as you can to help support your application.

It’s also worth checking your credit file several months before applying for a mortgage to see if you can improve it (if necessary). The higher your credit rating, the more likely your chance of finding the best 5-year fixed-rate mortgage deals.

Looking to compare fixed-rate mortgage deals? Let us do the hard work. All we need is a few details about you and your property, and we’ll give you a list of appropriate deals to choose from.

Frequently asked questions

Can I overpay a fixed-rate mortgage?

Many mortgage lenders will let you overpay your mortgage by a certain amount without penalties. Overpaying can reduce your overall mortgage cost and also shorten the time taken to pay it off, so can be worthwhile if you can afford it.

In most cases, you can overpay up to 10% of your mortgage balance per year during the initial fixed-rate period. If you move onto your lender’s SVR, you can typically overpay as much as you want.

What should I do if my 5 year fixed rate mortgage is coming to an end?

If your 5-year fixed-rate mortgage is nearly up, start to explore what’s on offer to see if you can find a better deal. We can help you compare mortgages quickly and easily.

Make sure your credit rating is in the best possible shape as the end of your current deal approaches. Avoid making late payments on credit cards or loans, and check your credit record for any mistakes. It can take six months for your credit score to improve, so think ahead when your deal is coming to an end.

What happens when my fixed-rate mortgage ends?

When your fixed-rate mortgage is coming to an end, your current provider should contact you. You can consider switching to a new deal with it or remortgaging with a different provider.

If you do nothing, you’ll be switched to your current lender’s SVR when your fixed-rate deal ends. This is likely to be at a higher rate of interest than the mortgage you’re on.

If you remortgage, you might find that you’ve moved into a different loan-to-value (LTV) band. You may be eligible for a better interest rate, especially if your home has gone up in value.

Do I need a good credit score for a fixed-rate mortgage?

You’ll typically need to have a higher credit score to access the best five-year fixed-rate mortgage deals.

But your credit score isn’t the only thing lenders look at. They’ll also consider how much you earn, your financial commitments, how affordable the repayments will be and the loan-to-value ratio.

If you have a poor credit score, it’s worth talking to a mortgage broker who might be able to find a specialist lender to help you. You’re likely to pay a much higher rate of interest, though, as you’ll be seen as a higher risk. Making your mortgage repayments in full and on time will help improve your credit score.

Can I get a fixed-rate mortgage with an offset account?

Yes, there are mortgage providers that offer fixed-rate offset mortgages, but you’re likely to have fewer options to choose from. You may also need to have a lower LTV – for example, 75% or 80%.

When is a good time to opt for a 5-year fixed-rate mortgage?

A good time to agree a five-year deal can be when you have no plans to move during that period and interest rates are low and steady (or starting to rise), so you’re able to lock in the cheap rate. Make sure you understand any early repayment charges if you need to end your deal early.

If interest rates are falling, it can be a good time to opt for a shorter fixed deal, or even a different type of mortgage such as a tracker mortgage.

If you’re not sure which type of mortgage is right for you, it’ll help to talk through your options with a mortgage broker.

Does getting a fixed rate mortgage mean I can afford to borrow more?

No. Lenders look at your overall affordability to make sure you can meet your repayments. It’s much better to be realistic about what you can afford rather than pushing yourself to the limit. To get a rough idea of what you could afford to borrow based on your income, try our mortgage calculator.

Will a fixed-rate mortgage go up if Bank of England rates change?

No. The whole point of a fixed-rate mortgage is that the rate is guaranteed to stay the same throughout the fixed period. If you have a 5-year fixed-rate mortgage, it will stay the same for five years and your mortgage payments shouldn’t change during that time.