Compare Fixed Term Mortgage Rates

Best 3 Year Fixed Rate Mortgages

We are searching our databases for your products...

Representative Example

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.

Quick Links

Quick links are where we have an arrangement with a provider so you can move directly from our site to theirs to view more information and apply for a product. We also use quick links where we have an arrangement with a preferred broker to move you directly to their site. Depending on the arrangement we may receive a modest commission either when you press a 'Go to Provider' or 'Speak to an Adviser' button, when you call an advertised number or when you complete an application.

Get our weekly newsletter

Weekend Moneyfacts is available free by email to all users.

Please send me Weekend Moneyfacts, Savers Friend and selected third-party offers.

How Moneyfacts works

  • blue money scales

    BALANCED. is entirely independent and authorised by the Financial Conduct Authority for mortgage, credit and insurance products.

  • free label

    FREE. There is no cost to you. Our service is entirely free and you don't need to share any personal data to access our comparison tables.

  • drawing of pound sign and arrow

    TRANSPARENT. We only receive payment from product providers and intermediaries for quick/direct links and adverts through to their websites.

  • blue binoculars

    COMPREHENSIVE. We research the whole market and scour the small print so you can find the best products for your needs.

Still not sure?

Read More Mortgage Guides
guide icon
Mortgage valuations are not in-depth surveys

A guide to mortgage valuations - what they are and what aren't.

Read More
guide icon
How to pay off your mortgage early

Looking for ideas about paying off your mortgage? Our helpful guide gives you the answers

Read More
guide icon
What income can I use for a mortgage application?

Our guide to the different types of income you can use when applying for a mortgage.

Read More
guide icon
What is an offset mortgage?

Is offsetting your mortgage a good idea? Find out the whys and wherefores in our easy guide.

Read More
guide icon
What is LTV?

Our guide explains what LTV (Loan To Value) is and how it will affect what type of mortgage you can get

Read More
guide icon
What fees do I need to pay when getting a mortgage?

Our guide to the different fees you may encounter when applying for a mortgage.

Read More
guide icon
What is a standard variable rate?

After your mortgage deal has finished you may revert to a standard variable rate. This guide explains more about what this rate is.

Read More

Ask us anything

Ask us anything

A guide to three year fixed rate mortgage

At a glance

  • Your monthly repayments will stay the same for three years, even if the Bank of England base rate rises.
  • The cheapest three-year fixed rate mortgage you find may actually be one with a higher initial rate than the product with simply the lowest rate in the sector. This is because it can also depend on the fees attached to the deal, and you should also consider the reverting rate once the initial period is over. Take a look at our three-year fixed rate mortgage calculators below to help find the best option for you.
  • The interest rates for three-year fixed mortgages are usually higher than deals with a two-year fixed term, but lower than fixed rate mortgages with longer terms.
  • Make sure to compare all fees attached to the product, as well as the rates, to find the best three-year fixed mortgage.

Three year mortgages explained

A three-year fixed mortgage is a mortgage that keeps the interest rate fixed for the first three years that you have it, meaning you can know the exact amount you’re going to need to repay every single month until the deal ends. After the initial fixed rate period of three years ends, your lender will automatically transfer you to their revert rate, which may be a standard variable rate (SVR) or other managed interest rate, which will tend to be much higher. This is why most borrowers will want to make sure they remortgage to a new fixed (or discounted variable) rate deal when the old one ends, to avoid seeing a spike in their repayments.

Who is a three year fixed mortgage for?

Three-year mortgages are most suitable to people who would find it hard to stretch their budget should their lender increase the monthly mortgage repayments in the next three years. The table above allows you to easily see how big a deposit/equity you will need for each mortgage, while the details tell you whether the product is for home buyers, remortgagors or both.

As with any mortgage application, you’ll want to make sure that your credit rating is as good as it can be – this is the main thing lenders will look at when deciding if you are eligible for their product, alongside your income and employment status. Keep in mind as well that if you apply for a mortgage and get rejected, your credit rating will likely be negatively affected, so make sure you have all your ducks in a row before you submit an application.

Credit check

Before you apply for a fixed rate mortgage it's important to check your credit score. 

Advantages of a three year fixed mortgage

The main advantage of a three-year fixed rate mortgage is that it can provide you with a longer period of repayment security than a two-year deal. Additionally, it means you do not need to search for a new mortgage as quickly and pay any fees associated with a new mortgage again after just two years. Also, in contrast to a five year or even a ten year mortgage, you would still be able to reassess your mortgage after three years, at which point the market might have changed enough that it makes sense to remortgage.

Disadvantages of a three year fixed mortgage

If mortgage rates drop within the following three years, you could end up paying over the odds. However, even if this happens and remortgaging early would make a substantial difference, you usually have the option to switch earlier – on payment of a fee. The same fee tends to apply if you choose to repay your mortgage early, with the cost typically being higher the earlier you try to leave the deal, which is why it might be wise to keep these charges in mind when deciding which mortgage to choose.

Another potential disadvantage, depending on the deal you find, is that fixed rate mortgages tend to come with higher fees than variable rate products. Fixing for three years might also be unsuitable for those who are planning to move in the next few years, as not all mortgages will allow you to take the deal with you when you move, and those that do may charge hefty fees for the privilege – even more reason to compare mortgages before committing to a deal.

Alternatives to a three year fixed mortgage?

If you can't find a product that's right for you, don't worry – try our quick and easy mortgage comparison to access a fully comprehensive list of all mortgages, based on your criteria.

Pros and cons of three year fixed rate mortgages

  • Longer repayment security. You'll be able to budget reliably, for longer, knowing that your mortgage repayments won't change for three years.
  • More competitive interest rates. Although the rates are not as low as two-year fixed rate mortgages, three-year fixed rate mortgages offer better interest rates than mortgages with a five-year fixed rate.
  • Remortgage less often. You won't have to look for new mortgage deals as often as you would with a shorter-term mortgage.
  • Higher arrangement fees. Fixed mortgages tend to come with higher fees than variable rate mortgages.
  • No benefit from interest rates reductions. If the Bank of England base rate drops during your fixed term, your rate will remain the same and you therefore will not benefit from any subsequent drop in rates.
Compare fixed rate mortgages

Cookies will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy