2 Year Fixed Rate Mortgages - Best Mortgage Deals | moneyfacts.co.uk

Compare the best 2 Year Fixed Rate Mortgages

  - Looking to fix your mortgage rate for 2 years? Our team of independent experts have compared six Best Buy 2 year mortgages for you.
Also look at:

Compare the Best 2 Year Fixed Rate Mortgages

Compare
Up to 3 products
side by side
RateAPRCMortgage TypePeriodMax LTVERCSearch all
5223 mortgages

1.19% reverting to 3.99% 3.6% Fixed31/10/201975%To 31/10/2019Details...
Speak to an Adviser
 
  Product Fee: Arrangement £995 

1.43% reverting to 4.24% 3.8% Fixed31/08/201975%To 31/08/2019Details...
Go to Site
 
  Product Fee: Arrangement £495 

1.24% reverting to 4.74% 4.3% Fixed31/08/201965%To 31/08/2019Details...
Speak to an Adviser
 
  Product Fee: Completion £995 

1.24% reverting to 3.99% 3.6% Fixed31/10/201980%To 31/10/2019Details...
Speak to an Adviser
 
  Product Fee: Arrangement £995 

1.39% reverting to 3.99% 3.7% Fixed31/10/201985%To 31/10/2019Details...
Speak to an Adviser
 
  Product Fee: Arrangement £995 

1.90% reverting to 5.19% 4.9% Fixed31/08/201990%To 31/08/2019Details...
Go to Site
 
  Product Fee: Completion £895, Booking £100 
  Sponsored Products  

2.09% reverting to 4.70% 4.3% Fixed31/08/201990%1st 2 yrs Details...
Go to Site
 
  Product Fee: Arrangement £999 

1.55% reverting to 4.74% 4.3% Fixed30/06/201965%To 30/06/2019Details...
Go to Site
 
  Product Fee: None 

1.78% reverting to 4.54% 4.1% Fixed01/10/201970%To 01/10/2019Details...
Go to Site
 
  Product Fee: None 

1.94% reverting to 3.74% 3.5% Fixed31/08/201975%To 31/08/2019Details...
Go to Site
 
  Product Fee: Completion £295 

1.42% reverting to 3.75% 3.5% Fixed31/08/201960%To 31/08/2019Details...
Go to Site
 
  Product Fee: Booking £995 

1.19% reverting to 3.74% 3.3% Fixed2 years60%1st 2 yrs Details...
Go to Site
 
  Product Fee: Reservation £999 
Compare
Last Updated: Thursday 29 June 2017 14:55

Representative Example: £150,000 mortgage over 25 years initially at 1.24% fixed for 28 months reverting to 3.99% variable for term. 28 monthly payments of £581.75 and 272 monthly payments of £771.03. Total amount payable £227,154.16 includes loan amount, interest of £76,009, valuation fees of £0 and product fees of £995. The overall cost for comparison is 3.6% APRC representative.

Moneyfacts.co.uk Best Buys show the best products chosen by our independent experts. Where we have been able to we have also provided a link for you to apply via Moneyfacts.co.uk today. Products shown with a yellow background are sponsored products.

Disclaimer: Credit will be secured by a mortgage on your property. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Written quotations are available from individual lenders. Loans are subject to status and valuation and are not available to persons under the age of 18. All rates are subject to change without notice. Please check all rates and terms with your lender or financial adviser before undertaking any borrowing.

 

On this page:

  1. What is a 2 year fixed rate mortgage?
  2. Should I fix my mortgage for 2 years?
  3. Who is a 2 year mortgage for?
  4. Advantages of a 2 year fixed rate mortgage
  5. Disadvantages of a 2 year fixed rate mortgage
  6. How to find the best 2 year fixed rate mortgage
  7. Alternatives

What is a 2 year fixed rate mortgage?

A two year fixed rate mortgage is, simply, a mortgage that keeps the same interest rate for the first 2 years that you have it, no matter how much the lender raises or lowers its rates of interest. After the initial period of 2 years, the interest you pay will transfer to your lender's standard variable rate (SVR). Fixed rate mortgages can last for a little as 2 or as much as 10 years, but on this page, we will be looking at mortgages 2 year mortgages only.


Should I fix my mortgage for two years?

If you fix your mortgage for 2 years then your monthly payments will not change for the duration of your 2 year introductory term. Variable mortgage types can increase their rates any time, which will increase the amount you need to pay your lender. If you find a good rate on a 2 year mortgage, you can commit to spending only the fixed amount for 2 years before your lender is allowed to change your rate. This can be offer peace of mind since you don't need to worry about rising rates. However, if mortgage rates go down, you will still be required to pay the fixed amount you agreed with your lender!


Who is a 2 year fixed rate mortgage for?

To put it simply, two year mortgages are most suitable to people who would find it hard or impossible to successfully make their mortgage payments their lenders rates were to increase within the next 2 years. Other fixed terms are available, from as little as 2 years, to as much as 5 or 10 years.


Advantages of a 2 year fixed rate mortgage

A longer period of repayment security can be gained by choosing a longer term fixed rate. As well as security, with a longer term fixed rate you do not need to search for a new mortgage every year, and pay the fees associated with a new mortgage, as you might do with a shorter term fixed mortgage such as a 2 year mortgage. Additionally, if a 2 year term will allow you to reasses your mortgage after two years, whereas a 5 or 10 year mortgage would require you to wait for longer.


Disadvantages of a 2 year fixed rate mortgage

The risk with a longer term fixed rate is that if mortgage rates drops, you could end up paying over the odds. In the current low-rate environment, this is not a large risk, but in this situation you may decide you want to change your mortgage before completing the initial fixed rate term to save money. Fixed rate mortgages usually charge a fee if you want to change or repay your mortgage early, thereofre it's wise to keep these charges in mind when you are deciding which longer term fixed rate mortgage to take. These charges may be prohibitively expensive, particularly in the early years.

When you look at our best buys, you'll see that we have selected the best 2 year fixed rate mortgage deals from across different loan-to-value tiers in order to give a better overview of what's available.

If you can't find a product that's right for you, don't worry - try our quick and easy mortgage search to access a fully comprehensive list of all mortgages.


Finding the best 2 year fixed rate mortgage

If you've decided that a two year term fixed rate mortgage is for you, there's still plenty of options to consider. Primarily;

The mortgage rate

This is determined by the size and value of the property, as well as your credit score and the size of your deposit. Generally, the more money you can put down for a deposit, the better your mortgage rate will be, since you present less of a risk to the lender.

Keep an eye out for fees! Some of the lower priced 2 year fixed rate mortgage rates may look very appealing, but they can come with an expensive arrangement fee, which can sometimes undo any benefit you would enjoy from the lower rate.

Fees and other charges

As always, read the small print! Always sit down and work out how much you will be charged at the beginning of your mortgage, and when your mortgage ends. It's also worth discovering how much you will be charged if you have to cancel - even if you never do it, it's better to be prepared. Work out the full cost of your mortgage including all fees when you compare.


Longer fixed rate periods

You may find that the introductory rate on a three year fixed rate mortgage is higher than that of a 2 year fixed rate mortgage, or if you choose a variable rate mortgage. Further you'll find the introductory rates on the 5 to 10 year mortgages are slightly higher still- you might consider this a small price to pay for the security of knowing what your mortgage rates are going to be for several years. Compare the best buy charts of these fixed rate mortgage and variable mortgages:

 
 

Mortgage Calculators

How much will I pay monthly?How much will I pay monthly?
Work out how much your monthly mortgage repayments will be.

How much do I need to borrow?How much do I need to borrow?
Work out how much money in total you will need to borrow in order to get a mortgage.

One in three second steppers need support
One in three second steppers need support

While there’s a lot of attention on the help that first-time buyers get to boost them onto the prope... More

More choice for house hunters with bad credit
More choice for house hunters with bad credit

Debt is not something we like to talk about, even if it’s in the past, but nonetheless it’s somethin... More

What’s your garden worth?
What’s your garden worth?

A garden may be the true sign of luxury when it comes to owning a home, especially if you’ve grown u... More

£3,242: the high street cost of not remortgaging
£3,242: the high street cost of not remortgaging

Last week we reported that remortgaging could save you £2,000 compared with reverting to your lender... More

Key steps to buying your first home
Key steps to buying your first home

As figures show the first June drop in the price of properties coming onto the market since 2009, it... More

How to choose an estate agent
How to choose an estate agent

Find out how to choose the best estate agent in this guide. We look at practical ways to shortlist, ... More

Mortgage valuations are not in-depth surveys
Mortgage valuations are not in-depth surveys

Mortgage valuations shouldn’t be confused with a property survey. You should consider having a surve... More

You and your mortgage
You and your mortgage

What is your relationship with your mortgage? Are you repaying it off as quickly as you can – are yo... More

Saffron improves FTB mortgage
Saffron improves FTB mortgage

Saffron BS has reduced the rate on its five-year fixed first-time buyer (FTB) mortgage, which now of... More

Principality improves 2yr mortgage Best Buy
Principality improves 2yr mortgage Best Buy

Principality BS has reduced the rate on its two-year mortgage deal by 0.05%, which has improved its ... More

Principality enters 2yr mortgage chart
Principality enters 2yr mortgage chart

Principality BS has reduced selected rates, including on its two-year mortgage deal, which has enter... More

Yorkshire presents lowest-ever mortgage rate
Yorkshire presents lowest-ever mortgage rate

Yorkshire BS has amended its discounted variable rate mortgage, which now offers the lowest ever rat... More

Principality reduces 2yr mortgage rate
Principality reduces 2yr mortgage rate

Principality BS has reduced the rate on its two-year mortgage deal, which in combination with its at... More

Close