26 Mar 2025
Should I go for a two-year or five-year fixed rate?
Choosing which fixed rate to go for has been a dilemma for many of our clients so far this year. There really isn’t a right or wrong answer, but below we look into the pros and cons of a two-year and a five-year fixed rate to help make the right decision for you.
Two-year fixed rate
Pros
- Greater flexibility - this could be suitable for those who are expecting changes in their financial situation, or looking to move in the short term
- Opportunity to benefit if rates go down
Cons
- Frequently having to remortgage - it is likely you will pay a lender fee to secure the product each time which will add up
- Uncertainty - you will have less protection against changes in mortgage rates
Five-year fixed rate
Pros
- Long-term stability which could provide peace of mind
- Ability to financially plan and budget your monthly mortgage costs are going to be each month irrespective to any changes in the mortgage market
Cons
- Less flexibility
- Not ideal for those expecting changes in their financial situation, or those planning to move
- Potentially higher penalties for overpayments or ending your mortgage term early
You could even hedge your bets and consider going for a three-year fixed rate. Make sure you look at the differences between the current fixed rates to help you make an informed decision about which rate suits you best.
Remember to contact the friendly team at Mortgage Required who have access to whole of market, therefore, we can help to find you the best available rate: 01628 507477 or email: team@mortgagerequired.com
Recent posts
Keeping the kids entertained over the six-week summer holidays isn’t always easy, especially with the cost-of-living making it even more difficult. Below is a list of fun, inexpensive ideas to do over the break
The Financial Conduct Authority (FCA) has published a discussion paper about the future of the mortgage market in a bid to improve access for first -time buyers, self-employed, and those borrowing in retirement.
Ever wondered where the most reasonably-priced towns for families to buy are? Property company, Zoopla has identified the top 10 towns for families to live in the UK by looking at the most affordable towns, and how many people are looking in that area.
Increase in zero-deposit mortgages in 2024
22 days ago
There was a 32% increase last year in 100% loan-to-value (LTV) mortgages which are mortgages that require zero deposit. According to a recent report by chartered accountants and business advisers, Lubbock Fine, the reason behind this is buyers simply struggling to save enough for a deposit.
Average savings by age in the UK
23 days ago
Many people are quite private when it comes to what is in their bank account. In this short blog, we look into what Brits have saved by age group.
Research from buy-to-let lender, Landbay, shows that UK landlords are looking at raising rents ahead of the Renters' Rights Bill which is due to come into force this year.
Data shows landlords could miss out on green mortgages due to expired energy performance certificates.
Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.
More information
Trusted by
