Leanne Macardle

Leanne Macardle

Editor
Published: 30/01/2019

At a glance

  • Your monthly mortgage repayments will stay the same for your chosen term (usually five or 10 years) even if interest rates rise.
  • To find the lowest five-year fixed rate mortgage, make sure you review both the initial mortgage rate and the lender’s standard variable rate.
  • Interest rates are usually higher with long-term fixed mortgages.
  • If you want to remortgage during the fixed period, you may have to pay an early repayment charge.
  • Make sure to consider the arrangement fees when choosing the right five to 10-year fixed rate deal for you – the lowest rates may not always offer the best value.

What is a five to 10-year fixed rate mortgage?

As the name may suggest, it’s a mortgage that retains the same interest rate for the first five or 10 years that you have it, no matter how much the lender raises or lowers its interest rates. After the initial period of five or 10 years, the rate of interest you pay will transfer to your lender's standard variable rate.

Should I fix my mortgage for five to 10 years?

If you fix your mortgage for either five or 10 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!

Who is a five to 10-year fixed rate mortgage for?

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.

Finding the best five to 10-year fixed rate mortgage

If you've decided that a long-term fixed rate mortgage is for you, there's plenty of factors to consider; primarily:

The mortgage rate

The rate will be determined by the size and value of the property you want a mortgage for, as well as your credit score and the size of your down payment (deposit). Generally speaking, 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 on the lookout for fees! Some of the lower five to 10-year fixed mortgage rates may look very attractive, but they may come with a painful arrangement fee, which can sometimes undo any benefit you would enjoy from the lower rate.

Fees and other charges

As always, you must read the small print! Sit down and work out how much you will be charged at the beginning and end of your mortgage. It's also worth knowing how much you will be charged if you need to cancel – even if you never do it, as it's better to be prepared. Work out the full cost of your mortgage including fees when you compare.

Shorter fixed rate periods

You may find that the introductory rate on a short-term fixed rate mortgage is lower than that of a five to 10-year fixed rate mortgage, or if you choose a variable rate mortgage. Compare the Best Buy charts of these fixed rate mortgage and variable mortgages:

Pros and cons of five to 10-year fixed rate mortgage

  • Greater repayment security. You won't need to worry about rising rates affecting your mortgage repayments for the next five years (or longer depending on the initial fixed term of your mortgage deal).
  • You won't have to remortgage as often. With a longer-term fixed rate, you also won't have to search for a new mortgage deal as often or pay the fees that may come with this.
  • Higher interest rates. Five to 10-year fixed mortgages tend to have higher interest rates than those with a two or three-year fixed term or a variable rate.
  • You're also tied in for longer. If you want to repay your mortgage early, or remortgage during the five to 10-year fixed rate period, you may have to pay an early repayment charge.
  • Payments stay the same. If interest rates go down over the next five to 10 years, your payments won't – so you could pay more than the prevailing rate.

Moneyfacts tip

Moneyfacts tip Leanne Macardle

Before your five-year fixed rate mortgage comes to an end, look at the mortgage deals available to see if you can find a better offer than the rate you will pay once moved onto your lender's standard variable rate.

Mortgage calculator

Our mortgage calculator helps you to see how much your mortgage might cost you each month.

Our how much can I borrow calculator gives you a range of how much a lender might consider lending you under a mortgage. This calculation is only an indication only.

Read our How much can I borrow for a mortgage guide to find out more about what can impact your potential sum of borrowing.

Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

man and woman holding boxes in kitchen

At a glance

  • Your monthly mortgage repayments will stay the same for your chosen term (usually five or 10 years) even if interest rates rise.
  • To find the lowest five-year fixed rate mortgage, make sure you review both the initial mortgage rate and the lender’s standard variable rate.
  • Interest rates are usually higher with long-term fixed mortgages.
  • If you want to remortgage during the fixed period, you may have to pay an early repayment charge.
  • Make sure to consider the arrangement fees when choosing the right five to 10-year fixed rate deal for you – the lowest rates may not always offer the best value.

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