The Best 3 Year Fixed Rate Mortgages | moneyfacts.co.uk

Compare the best 3 Year Fixed Rate Mortgages

  - Looking to fix your mortgage rate for 3 years? Our team of independent experts have compared six Best Buy 3 year mortgages for you.
Also look at:

Compare the Best 3 Year Fixed Rate Mortgages

Compare
Up to 3 products
side by side
RateAPRCMortgage TypePeriodMax LTVERCSearch all
4993 mortgages

1.66% reverting to 4.99% 4.3% Fixed30/06/202165%To 30/06/2021Details...
Speak to an Adviser
 
  Product Fee: Completion £495 

1.83% reverting to 4.04% 3.5% Fixed31/07/202175%To 31/07/2021Details...
Speak to an Adviser
 
  Product Fee: None 

1.93% reverting to 4.04% 3.6% Fixed31/07/202180%To 31/07/2021Details...
Speak to an Adviser
 
  Product Fee: None 

2.18% reverting to 4.79% 4.3% Fixed01/07/202190%To 01/07/2021Details...
Go to Site
 
  Product Fee: Arrangement £995 

2.19% reverting to 4.74% 4.2% Fixed30/06/202185%To 30/06/2021Details...
Speak to an Adviser
 
  Product Fee: None 

2.49% reverting to 4.74% 4.3% Fixed30/06/202190%To 30/06/2021Details...
Speak to an Adviser
 
  Product Fee: None 
  Sponsored Products  

1.85% reverting to 4.49% 4.0% Fixed30/06/202170%To 30/06/2021Details...
Go to Site
 
  Product Fee: Arrangement £1495 

1.69% reverting to 3.94% 3.5% Fixed31/08/202160%To 31/08/2021Details...
Go to Site
 
  Product Fee: Booking £999 

2.29% reverting to 4.95% 4.4% Fixed30/06/202190%1st 3 yrs Details...
Go to Site
 
  Product Fee: Arrangement £999 

2.29% reverting to 4.95% 4.4% Fixed30/06/202190%1st 3 yrs Details...
Go to Site
 
  Product Fee: Arrangement £999 

Representative Example: £150,000 mortgage over 25 years initially at 2.18% fixed for 38 months reverting to 4.79% variable for 46 months and 4.54% variable for term. 38 monthly payments of £649.01, 46 monthly payments of £833.01 and 216 monthly payments of £816.99. Total amount payable £240,733.68 includes loan amount, interest of £89,451, valuation fees of £188 and product fees of £995. 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.

 

On this page:

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

What is a 3 year fixed rate mortgage?

A three fixed rate mortgage is, simply, a mortgage that keeps the same interest rate for the first 3 years that you have it, no matter how much the lender raises or lowers its rates of interest. After the initial period of 3 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 3 year mortgages only.


Should I fix my mortgage for three years?

If you fix your mortgage for 3 years then your monthly payments will not change for the duration of your 3 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 3 year mortgage, you can commit to spending only the fixed amount for 3 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 3 year fixed rate mortgage for?

To put it simply, three 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 3 years. Other fixed terms are available, from as little as 2 years, to as much as 5 or 10 years.


Advantages of a 3 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 3 year term will allow you to reasses your mortgage after three years, whereas a 5 or 10 year mortgage would require you to wait for longer.


Disadvantages of a 3 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 3 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 3 year fixed rate mortgage

If you've decided that a three 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 3 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.


Shorter and longer fixed rate periods

You may find that the introductory rate on a short-term fixed rate mortgage is lower than that of a 3 year fixed rate mortgage, or if you choose a variable rate mortgage. Additionally, you'll find the introductory rates on the 5 to 10 year mortgages are slightly higher - 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.

Two-year mortgage rate at 21-month high
Two-year mortgage rate at 21-month high

After years of falling mortgage rates, many could be forgiven for getting used to record low repayme... More

Home purchases see highest February since 2007
Home purchases see highest February since 2007

Homeowner purchases reached an impressive 50,000 this February, marking the highest level recorded f... More

Mortgage Freedom Day has come early
Mortgage Freedom Day has come early

Today is Mortgage Freedom Day, the day on which the average Brit has earned enough to pay off the an... More

Higher-LTV mortgage rates still decreasing
Higher-LTV mortgage rates still decreasing

Despite mortgage rates seeing a rise as the base rate is expected to increase next month, the Bank o... More

Two-year fixed mortgage rate at 19-month high
Two-year fixed mortgage rate at 19-month high

With the base rate – and thus most mortgage rates – due to rise next month, providers are getting re... 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

West Brom’s 2-year FTB mortgage now number 2
West Brom’s 2-year FTB mortgage now number 2

West Brom BS has reduced the rate on its two-year fixed first-time buyer (FTB) mortgage by 0.15%, wh... More

Virgin Money improves three-year mortgage
Virgin Money improves three-year mortgage

Virgin Money has reduced the rate on one of its three-year mortgages by 0.02%. This deal offers the ... More

Tesco’s FTB mortgage rockets into first place
Tesco’s FTB mortgage rockets into first place

Tesco Bank has reduced selected mortgage rates, which sees its five-year fixed first-time buyer (FTB... More

Hinckley & Rugby tops discounted mortgage chart
Hinckley & Rugby tops discounted mortgage chart

Hinckley & Rugby BS has reduced the rate on its discounted variable rate mortgage by 0.25%, as a res... More

Barclays’ 5yr fixed mortgage improved
Barclays’ 5yr fixed mortgage improved

Barclays Mortgage has reduced the rate on its five-year fixed deal by 0.20%, making it the lowest of... More

Close