Fixing for five years? Check what it costs to leave

A five-year fix can look appealing when shorter deals cost almost the same. You get longer payment certainty, potentially at a lower rate. But what happens if rates fall and you want to switch?

Our research found at 75% LTV Nationwide’s two-year and three-year remortgage fixes at 5.12%. Its five-year fix was 4.99%, with no product fee on any option. A marginal difference.

That makes a longer fix worth considering. Your rate stays the same if general borrowing costs rise. However, it also stays the same if cheaper deals become available.

The catch... You can usually leave early, but your lender may charge an Early Repayment Charge (ERC). This typically means paying a percentage of the amount you repay. That charge could outweigh the savings from remortgaging.

Before choosing a longer fix, it therefore helps to understand the cost of leaving. Crucially, not all lenders are the same.

A familiar five-year schedule starts at 5%, then falls annually to 1%. But some charges fall more slowly, while others stay flat.

For example, Barclays’ five-year fix charges 4% throughout its fixed period.

Dudley Building Society’s schedule starts at 4%, reaching 1% for the final two years.

On a £200,000 repayment, those later charges would mean £8,000 versus £2,000. That difference could determine whether switching to a lower rate saves you money or makes no sense.

Some products offer a different compromise: a longer fix with a shorter tie-in. LiveMore’s five-year Flexi Fix charges 5% in year one and 4% in year two. After that, borrowers can leave without an ERC. That allows borrowers to keep their fixed rate or switch if suitable, cheaper deals appear.

Removing ERCs entirely can cost considerably more, though. United Trust Bank’s Super Prime range illustrates the trade-off at 75% loan-to-value. Its five-year fix costs 5.39% with ERCs, compared with 6.59% without them. Both carry a £1,495 product fee.

You pay that higher rate from the outset, whether you eventually switch or stay. The extra interest buys flexibility; it does not guarantee a saving.

That is why ERCs belong alongside the rate and fees in your comparison. A lower charge may make an early remortgage worthwhile if you're confident rates will fall. No mortgage advisers can give you that confidence, from world events, budget announcements or inflation data. No one knows if rates will be up or down, or how much in 3, 4, or 5 years.

Examples reflect the research snapshot dated 10 September 2026. Rates, availability and eligibility can change. Check your mortgage illustration for the exact terms.