Best 5 Year Fixed Rate Mortgage

5 year fixed rate mortgages explained

A five year mortgage retains the same interest rate for the first five years that you have it, no matter how much the lender raises or lowers its interest rates. After the initial period of five years, the rate of interest you pay will transfer to your lender's standard variable rate.

If you fix your mortgage for five years, then your interest rate will not change for the duration of your chosen term. Other mortgage types can increase their rates any time, particularly if you have a variable rate mortgage, which can increase the amount you need to pay your lender. A fixed mortgage on the other hand ensures that your monthly repayments will stay exactly the same, regardless of what happens to rates during your fixed period. This may offer peace of mind since you don't need to worry about rising rates. Conversely, if mortgage rates go down, you will still be required to pay the fixed amount you agreed with your lender, so choose carefully!

To put it simply, these mortgages are most suitable for people who want the certainty of their payments for the long term and are not likely to have a change in circumstances during the initial mortgage term.

Mortgage brokers remove a lot of the paperwork and hassle of getting a mortgage, as well as helping you access exclusive products and rates that aren’t available to the public. Mortgage brokers are regulated by the Financial Conduct Authority (FCA) and are required to pass specific qualifications before they can give you advice.

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