Fixed Rate Mortgages UK: 2, 5 & 10 Year

What Is a Fixed-Rate Mortgage?

With a fixed-rate mortgage, you agree with your lender to lock in the same interest rate for a set period — typically 2, 3, or 5 years. Unlike a variable-rate mortgage, your rate stays exactly the same regardless of market conditions.

This means your monthly repayments won't change during the fixed period, making it much easier to budget and plan. The trade-off is that fixed rates can be slightly higher than the best variable rates, since you're paying for certainty.

The rate you'll be offered depends on your application strength — credit history, stable income, and a sizeable deposit all help you access better deals. See our guide on what counts as a good rate in the current market.

How Long Can You Fix Your Rate For?

Most UK lenders offer 2-year and 5-year fixed rates as standard. Some also offer 3-year or 7-year terms, and a small number of specialist lenders go up to 10 years or longer.

A handful of lenders — including Kensington Mortgages and Perenna — now offer 30-year fixed-rate mortgages, where repayments remain the same for the entire loan term. However, the rate on longer fixes is typically higher.

The right term depends on your plans and risk appetite. If you think rates are good now, locking in for longer could save money. If you're unsure, a shorter term gives flexibility to reassess. Understanding your affordability will help you decide how much you can lock in.

What Happens When the Fixed Rate Ends?

Your lender will contact you towards the end of your fixed period with a new deal offer. Your options:

• Remortgage onto a new fixed rate with the same lender
• Switch to a new deal with a different lender
• Stay on your lender's standard variable rate (SVR)
• Move to a tracker rate

Important: If you don't take action, you'll automatically move to the SVR — almost always significantly higher. Set a reminder a few months before your deal ends. You can start the remortgage process up to 6 months early.

Can You Break a Fixed Rate Early?

Yes, but leaving early usually triggers early repayment charges (ERCs) — often 1–5% of the outstanding loan. A broker can calculate whether savings from a new deal outweigh the ERC cost.

How a Broker Can Help You Find the Best Fixed-Rate Deal

An experienced broker can:

• Assess your finances and identify potential issues before you apply
• Recommend lenders based on current rates — including specialist or exclusive deals
• Compile an application that positions you for the most competitive rate
• Advise on the optimal fixed-rate term for your circumstances and plans

Advantages and Disadvantages

Advantages

• Payment certainty: Monthly repayments stay exactly the same, making budgeting easy.
• Protection from rate rises: If the Bank of England raises rates, your payments won't increase.
• Lock in a good deal: If rates are currently low, secure them for 2–10+ years.

Disadvantages

• Early exit costs: Moving home or switching deals during the fixed period usually incurs ERCs.
• Miss out if rates fall: If the base rate drops, you won't benefit until your term ends.
• Limited overpayments: Most lenders cap at 10% of the balance per year on fixed deals.

What Are the Alternatives?

• Standard variable rate (SVR): Your lender's default rate — typically higher and subject to change at any time.
• Discount variable mortgage: A variable rate with a discount applied for a set period (usually 2–3 years).
• Tracker mortgage: A rate that moves directly in line with the Bank of England base rate.

Fixed Rates for First-Time Buyers

Fixed rates are particularly popular with first-time buyers because they offer certainty when navigating homeownership for the first time. Knowing exactly what your payments will be makes budgeting much easier.

However, first-time buyers with smaller deposits may face slightly higher rates than home movers with existing equity. A broker can find the most competitive deal for your deposit level.