Mortgage Rates: 5-year fixed-rate mortgages

New to fixed-rate mortgages? Start with our fixed-rate mortgage: what it is and how it works guide.
Comparing shorter fixes? See our 2-year vs 5-year fixed mortgage guide.
Considering a longer fix? Read our 5-year vs 10-year fixed mortgages comparison.

A 5-year fixed-rate mortgage is a home loan where the interest rate is fixed for five years. During that fixed period, your interest rate won’t change, which can help make your monthly repayments more predictable.

Your repayment figure may still include other elements (for example, how the mortgage is structured), but the key point is that the interest rate you’ve fixed won’t change for the five-year term.

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5-year fixed-rate mortgages

How repayments work during the fixed term

With a fixed-rate deal, the lender applies the agreed fixed interest rate to your outstanding mortgage balance. Because that rate is fixed for the term, the interest rate component of your mortgage repayments remains stable.

This can be useful if you want to reduce uncertainty and plan household budgets with more confidence.

Pros of a 5-year fixed-rate mortgage

Greater payment certainty for longer: A five-year fix can suit borrowers who want stability across a meaningful period.
Less exposure to short-term rate swings: If mortgage rates move up or down in the wider market, your fixed rate is designed to protect you from those changes until the end of the fixed term.
A clearer plan for what happens next: Because the fixed period is defined, it’s easier to plan what you’ll do at the end of year five, such as switching products with your current lender or remortgaging.

Cons of a 5-year fixed-rate mortgage

You may pay more if rates fall: If interest rates drop after you take out your five-year fix, you generally won’t benefit automatically from lower rates. Your fixed rate continues until the end of the term.
Early repayment charges can be a factor: If you repay the mortgage early or switch away from the deal during the fixed period, you may face early repayment charges (ERCs). These are often higher earlier in the term and may reduce over time.
Less flexibility than shorter fixes: A longer fixed period can mean fewer opportunities to adjust your mortgage rate if your circumstances or the market change.

What happens when the 5-year fixed term ends?

When the fixed period finishes, your mortgage will usually move onto a new rate arrangement with your lender. In many cases, this could be their standard variable rate (SVR), which can change over time.

Because SVR may be less competitive than fixed or other deal types, it’s common for borrowers to plan ahead for what comes next.

Remortgage or product transfer

Typically, you may have options such as:

Product transfer with your existing lender (where available)
Remortgaging with a new lender to secure a new deal

The exact process and timing varies by lender, but it’s generally sensible to consider your options before the fixed term ends.

Alternatives to consider

A 5-year fix is one approach within a wider range of mortgage structures. Depending on your priorities (stability, flexibility, or cost), you might compare:

2-year fixed-rate mortgages: shorter certainty, often more opportunity to review sooner
3-year fixed-rate mortgages: a middle ground between stability and flexibility
10-year fixed-rate mortgages: longer certainty, but typically a different balance of pricing and flexibility
Variable-rate mortgages (including discounted or tracker-style products): repayments can change as rates move

What to compare before choosing a 5-year fixed deal

A headline rate alone doesn’t tell the full story. When comparing 5-year fixed-rate mortgages, it helps to consider:

Early repayment charges (ERCs): how they work and how they reduce over time
Total cost of the deal: including any fees and the overall cost across the fixed period
What happens after year five: whether you’re likely to remortgage, and what rate you might move to
Your likely timeline: whether you expect to stay in the property long enough to make the fixed term worthwhile

Is a 5-year fixed-rate mortgage right for you?

A five-year fixed deal may be a good fit if you:

value longer-term payment stability
expect your circumstances to be broadly similar over the next five years
want to reduce the impact of market rate changes during the fixed period

It may be less suitable if you:

anticipate moving, significant changes, or paying off the mortgage early
want maximum flexibility to react quickly to rate changes
would struggle with the possibility of paying a higher rate if the market falls during your fixed term

5-year fixed-rate mortgages and loan-to-value (LTV)

The deposit size you can put down affects the mortgage options available to you and the pricing you may be offered. In general, lower LTVs (larger deposits) can open up a wider range of deals and may be associated with more competitive pricing.

Your final offer will depend on multiple factors beyond LTV, including your income, credit profile, and the lender’s criteria.

Change any value and the other figures will update automatically.

Try an example: £250,000 home with a £25,000 deposit → 90% LTV

Property value

£40,000 £5,000,000

Changing the property value keeps the mortgage amount and recalculates your deposit or equity and LTV.

Deposit or equity

£0 £200,000

Mortgage amount

£0 £200,000

Loan-to-value

50%

0% 100%

Your loan-to-value

50%

A £100,000 mortgage on a £200,000 property.

50%

50% mortgage 50% deposit or equity

Search mortgages with these figures

Starts with a residential purchase. You can change the mortgage type and purpose in the search.

No mortgage borrowing needed

With these figures, the property value is fully covered by your deposit or equity. No mortgage borrowing is required.

Small mortgage amount

Fewer lenders offer mortgages below £25,000, so your options may be limited. Product and legal fees can also have a greater impact on the overall cost of a smaller mortgage.

Low property value

Fewer lenders offer mortgages on properties valued below £50,000. Minimum property values vary by lender and property type.

Buying to let?

If this is a buy-to-let purchase, most lenders cap borrowing at 75–80% loan-to-value, with some specialist options reaching 85%. This cap applies to buy-to-let mortgages only — residential lending typically extends to 95%.

High-LTV residential mortgage

Residential mortgages above 95% LTV have limited availability and often require a specialist mortgage product or scheme. Talk to your mortgage adviser about your options.

No deposit or equity buffer

You have no deposit or equity buffer. A fall in the property's value could leave you owing more than it is worth. No-deposit residential mortgages have limited availability and specific eligibility requirements. Speak to your mortgage adviser.

FAQs

They can be. Longer fixed periods may cost more than shorter fixes because the lender is offering stability for a longer time.

However, the “best value” choice depends on the overall deal cost, including fees and any early exit charges, not just the interest rate.

Usually you can, but it may involve early repayment charges (ERCs). These charges are commonly highest earlier in the fixed term and reduce as you get closer to the end.

Mortgage pricing is influenced by market conditions and lender funding costs, alongside the risk profile of the borrower. Your individual circumstances, such as deposit size and affordability, can affect the deals you’re offered.

In most cases, you can’t simply extend the same fixed deal beyond its end date. Instead, you’ll usually move onto a new arrangement, either through a product transfer or by remortgaging.