Compare The Best 2 Year Fixed Rate 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.
 
If you are unsure or would like some advice, then you can speak to our trusted mortgage advisers
Also look at:

Compare the Best 2 Year Fixed Rate Mortgages

Compare
Up to 3 products
side by side
RateAPRCMortgage TypePeriodMax LTVERCSearch all
5669 mortgages

1.46% reverting to 4.25% 4.2% Fixed31/03/202165%To 31/03/2021Details...
Go to Site
 
  Product Fee: Completion £995 

1.63% reverting to 4.25% 4.3% Fixed31/03/202175%To 31/03/2021Details...
Go to Site
 
  Product Fee: Completion £995 

1.65% reverting to 4.19% 3.7% Fixed2 years75%1st 2 yrs Details...
Go to Site
 
  Product Fee: Booking £490, Upto £400000.00 Advance,Booking £980, £400001.00 - £800000.00 Advance,Booking £1470, £800001.00 - £1000000.00 Advance 

1.94% reverting to 4.49% 4.1% Fixed31/03/202180%To 31/03/2021Details...
Speak to an Adviser
 
  Product Fee: None 

1.96% reverting to 4.25% 4.3% Fixed31/03/202190%To 31/03/2021Details...
Go to Site
 
  Product Fee: Completion £495 

1.99% reverting to 4.49% 4.1% Fixed31/03/202185%To 31/03/2021Details...
Speak to an Adviser
 
  Product Fee: None 
  Sponsored Products  

1.74% reverting to 4.24% 3.9% Fixed2 years85%1st 2 yrs Details...
Go to Site
 
  Product Fee: Reservation £999 

2.94% reverting to 4.24% 4.1% Fixed30/06/202180%To 30/06/2021Details...
Go to Site
 
  Product Fee: None 

1.90% reverting to 4.69% 4.9% Fixed30/04/202175%To 30/04/2021Details...
Go to Site
 
  Product Fee: None 

2.54% reverting to 5.20% 4.8% Fixed30/04/202175%1st 2 yrs Details...
Go to Site
 
  Product Fee: None 

2.45% reverting to 4.24% 4.0% Fixed30/06/202170%To 30/06/2021Details...
Go to Site
 
  Product Fee: None 

1.84% reverting to 4.74% 4.2% Fixed31/12/202060%To 31/12/2020Details...
Go to Site
 
  Product Fee: None 

1.94% reverting to 4.99% 4.5% Fixed01/05/202185%To 01/05/2021Details...
Go to Site
 
  Product Fee: Arrangement £995 

1.99% reverting to 5.20% 4.6% Fixed30/04/202180%1st 2 yrs Details...
Go to Site
 
  Product Fee: None 

Representative Example: £150,000 mortgage over 25 years initially at 1.94% fixed for 25 months reverting to 4.49% variable for term. 25 monthly payments of £631.41 and 275 monthly payments of £816.53. Total amount payable £240,481.00 includes loan amount, interest of £90,331, valuation fees of £0 and product fees of £0. The overall cost for comparison is 4.1% 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.

 




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.

On this page:

  1. 6 of the best 2 year fixed rate mortgages
  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

6 of the best 2 year fixed rate mortgages

Yorkshire Building Society

APRC
DETAILS

Yorkshire Building Society

1.58% Initial Rate 
2 year fixed rate mortgage
65% LTV Purchase

4.2%
  • 1.46% Fixed to 31/03/2021
  • Reverting to an Existing Borrowers Rate of 4.25% discounted variable to 31/03/2024 (0.74% disc)
  • Reverting to an existing borrowers rate of 4.99% for the remainder of the term. 
  • Max Loan to Value: 65% Purchase 
  • Completion fee: £995
  • Deferred arrangement fee of £95% fixed on exit
  • Redemption charge:  To 31/01/2021: 2.5%/1.5% Sum Repaid
  • £250 cashback
  • Free valuation fees
  • Overpayments, underpayment and payment holidays allowed
  • Minimum loan: £25.001
  • Maximum loan: £5 million
  • Flexible option & Portable
Representative Example: £150,000 mortgage over 25 years initially at 1.46% fixed for 25 months reverting to 4.25% variable for 36 months and 4.99% variable for term. 25 monthly payments of £597.09, 36 monthly payments of £794.51 and 239 monthly payments of £845.87. Total amount payable £246,827.54 includes loan amount, interest of £95,693, valuation fees of £0 and product fees of £995. The overall cost for comparison is 4.3% APRC representative.

Taking first place is The Yorkshire Building Society with this 1.46% mortgage, fixed until 31/03/2021,followed by a discounted variable rate of 4.25% until 31/3/2024. Finally this reverts back to an existing borrowers rate of 4.99% for the remaining term of the mortgage. Available to those with a 35% deposit (65% LTV mortgage), this product comes with a completion fee of £995. 

This is a flexible mortgage deal offering both underpayments, overpayments and payment holidays (subject to T&Cs) as well as free valuation fees. This product is also portable in case you choose to move home during the term of the mortgage. 


Yorkshire Building Society

APRC
DETAILS

Yorkshire Building Society
1.63% Initial Rate
2 year fixed rate mortgage
75% LTV Purchase

4.3%
  • 1.63% Fixed to 31/03/2021
  • Reverting to a 4.25% Discounted Variable to 31/03/2024 (0.74% disc)
  • Reverting to an Existing Borrowers Rate of 4.99% for the remaining term of the mortgage
  • Max Loan to Value: 75% Purchase
  • Fee: £995 on completion
  • Redemption charge: To 01/03/2021: 2.5/1.5% Sum Repaid
  • Exit fees: Deferred arrangement fee £90 Fixed
  • Flexible options include: underpayments, overpayments & payment holidays (T&C apply)
  • Free Valuation fees
  • £500 Cashback
  • Minimum loan: £25,001
  • Maximum loan: £5 million
Representative Example: £150,000 mortgage over 25 years initially at 1.63% fixed for 27 months reverting to 4.25% variable for 36 months and 4.99% variable for term. 27 monthly payments of £609.11, 36 monthly payments of £794.40 and 237 monthly payments of £845.38. Total amount payable £246,534.43 includes loan amount, interest of £95,399, valuation fees of £0 and product fees of £995. The overall cost for comparison is 4.3% APRC representative.

If you have a deposit of 25% or more (75% loan to value mortgage) then you can apply for Yorkshire Building Society’s 1.63% fixed rate to 31/03/2021 (4.3% APRC). Like the 65% LTV product above this reverts to 4.25% discounted variable to 31/03/2024 and then moves to an existing borrowers’ rate of 4.99% for the remaining term.

If you are looking to benefit from a reduction on some of the outlays of buying a new home, then this fixed rate mortgage provides a cashback incentive of £500.

This mortgage also offers flexibility such as the ability to overpay, under pay and have payment holidays subject the terms and conditions of Yorkshire Building Society.

First Direct

APRC
DETAILS

First Direct

1.65% Initial Rate
2 year fixed rate mortgage
75% LTV Purchase & Remortgage

3.7%
  • 1.65% Fixed for 2 years
  • Reverting to an Existing Borrowers Rate of 4.19% for the remaining term of the mortgage
  • Max Loan to Value: 75% Purchase, 75% Remortgage
  • Fees: Booking £490, Up to £400,000 Advance, Booking £980, £400,001 - £800,000 Advance, Booking £1470, £800,001 - £1,000,000 Advance
  • Redemption charge: 1st 2 yrs: 3/2% Mortgage Advance
  • No valuation fees
  • Remortgaging only: free legal fees
  • Overpayments allowed
  • Minimum loan: £10,000
  • Maximum loan: £1,000,000
Representative Example: £150,000 mortgage over 25 years initially at 1.65% fixed for 24 months reverting to 4.19% variable for term. 24 monthly payments of £610.53 and 276 monthly payments of £791.95. Total amount payable £233,770.92 includes loan amount, interest of £83,231, valuation fees of £0 and product fees of £490. The overall cost for comparison is 3.8% APRC representative.

Next is First Direct who have a two-year fixed rate mortgage of 1.65% = (3.7% APRC). This may be an alternative to the Yorkshire Building Society deal for those who need to remortgage as you can apply both for remortgaging or buying a new home. You need to have a deposit of at least 25% (75% loan to value).

There is an upfront booking fee of £490 - £1,470 (depending on the amount you wish to borrow) to secure the rate for this mortgage.

Sainbury's Bank


APRC
DETAILS

Sainsbury's Bank

1.94% Fixed 2 year rate

80% LTV

4.1%
  • 1.94% fixed to 31/03/2021.
  • Reverts to an existing borrower's rate of 4.49% for the remainder of the term
  • Max LTV: 80%
  • No arrangement fee
  • Redemption charge: 2/1% sum repaid to 31/3/2021
  • Vacating fee: £100
  • Free valuation fees
  • Free legal fees
  • Portable with flexible option
  • Overpayments, underpayments and payment holidays allowed (T&C's apply)
  • Min loan: £40,000
Representative Example: £150,000 mortgage over 25 years initially at 1.62% fixed for 25 months reverting to 4.49% variable for term. 25 monthly payments of £608.40 and 275 monthly payments of £814.20. Total amount payable £240,355.00 includes loan amount, interest of £89,115, valuation fees of £0 and product fees of £995. The overall cost for comparison is 4.1% APRC representative.

At the number 4 spot on our chart is this 2 year fixed rate deal from Sainsbury's Bank. Pegged at 1.62% until 31/03/2021 this reverts back to an existing rate if 4.49%. With the benefit of no valuation fees and no legal fees this is a flexible mortgage with overpayments, underpayments and payment holidays allowed (subject to T & C's). With an arrangement fee of £995 and a low loan minimum of £40,000 this mortgage deal is also portable, if you decide to move home during the period. 

Yorkshire Building Society 


APRC
DETAILS

Yorkshire Building Society
1.96% Initial Rate 
2 year fixed rate mortgage
90% LTV Purchase

4.3%
  • 1.96% Fixed to 31/03/2021
  • Reverting to a 4.25% Discounted Variable to 31/12/2024 (0.74% disc)
  • Reverting to an Existing Borrowers Rate of 4.99% for the remaining term of the mortgage
  • Max Loan to Value: 90% purchase
  • Fee: £495 on completion
  • Redemption charge: To 31/03/21: 2.5/1.5% Sum Repaid
  • Exit fees: Deferred arrangement fee £90 Fixed
  • Flexible options include: underpayments, overpayments & payment holidays (T&C apply)
  • Free Valuation fees
  • £750 Cashback
  • Minimum loan: £50,000
  • Maximum loan: £500,000
  • Portable
Representative Example: £150,000 mortgage over 25 years initially at 1.96% fixed for 26 months reverting to 4.25% variable for 36 months and 4.99% variable for term. 26 monthly payments of £632.86, 36 monthly payments of £797.51 and 238 monthly payments of £848.88. Total amount payable £247,833.16 includes loan amount, interest of £97,198, valuation fees of £0 and product fees of £495. The overall cost for comparison is 4.4% APRC representative

Finally, the last of our top 6 2-year fixed rate mortgages is this 90% LTV (10% deposit) mortgage fixed at 1.96% until March 2021 from Yorkshire Building Society. The initial rate of 1.96% reverts to 4.25% after two years. 

With a completion fee of £495 and £250 cashback, free valuation fees and flexible options this is a 90% LTV mortgage worth paying attention to. 

Yorkshire is allowing underpayments, overpayments and payment holidays with this product too. 

Sainsbury’s Bank

APRC
DETAILS

Sainsbury’s Bank

1.99% Initial Rate
2 year fixed rate mortgage
85% LTV Purchase

4.1%
  • 1.99% Fixed to 31/03/2021
  • Reverting to an Existing Borrowers Rate of 4.49% for the remaining term of the mortgage
  • Max Loan to Value: 85% Purchase
  • £NIL Arrangement Fees
  • Redemption charge: To 31/03/21: 2/1% Sum Repaid
  • Exit fees: £100
  • Free valuation fees
  • £250 cashback
  • Underpayments, Overpayments and Payment holidays allowed
  • Minimum loan: £40,000
  • Portable. Flexible option
Representative Example: £150,000 mortgage over 25 years initially at 1.99% fixed for 26 months reverting to 4.49% variable for term. 26 monthly payments of £635.05 and 274 monthly payments of £816.24. Total amount payable £240,311.06 includes loan amount, interest of £90,161, valuation fees of £0 and product fees of £0. The overall cost for comparison is 4.1% APRC representative

Our next two-year fixed rate mortgage is from Sainsbury’s Bank. If you have a smaller deposit of 15% (85% loan to value) then you can apply for this mortgage, which has a fixed rate to 31/03/2021 of 1.99% (4.1% APRC). This reverts to an existing borrowers’ rate of 4.49% after the initial term.

This two-year fixed rate mortgage deal has the benefit of no arrangement fees, as well as free legal and valuation fees.

Information and rates correct as of 15/02/2019

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 or 3 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:

Written by: Leanne Macardle, last updated: 10/12/2018
 

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