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Fixed Rate mortgage

In the UK, the most popular fixed rate mortgages are 2 year and 5 year products. There are other options, and deciding which is best for you is not always straightforward – it is actually one of the more common questions asked of mortgage brokers. The interest rates and fees can make comparisons quite complex, so it is recommended that you speak to an experienced mortgage broker for guidance.

In this guide, we will provide some details of what is involved in choosing between a 2 year fixed rate and a 5 year fixed rate mortgage.

What fixed rate options are available?

Though 2 years and 5 years are popular choices, there are various periods available. A 2 year fixed rate mortgage often comes with the lowest interest rate for that initial period, but you will revert to the SVR after 2 years and may have to pay a fee to agree a new fixed rate.

A 5 year fixed rate mortgage usually has a higher interest rate, but that longer fixed period offers extra peace of mind. However, there are other fixed rate options available, such as:

  • 3 years
  • 7 years
  • 10 years

What is the best fixed rate period?

Whatever stage you are at on your homeowner journey, it can be challenging to decide on the most suitable fixed rate term for you. You may struggle to feel 100% confident in a choice, which is why it can be helpful to call on the expertise of a professional advisor.

Many things impact the interest rates of fixed rate terms, but the fundamental thing is the Bank of England’s base rate and predictions about its future. A mortgage broker will have a good understanding of all the factors involved and will offer trustworthy guidance on the best fixed rate that is the best fit for you.

Please be advised that it is not possible to know exactly what will affect the Bank of England’s base rate. With Brexit, COVID-19, and volatility in costs of important things like fuel and energy, the advice of an expert is more valuable than ever when it comes to interest rates.

Should I choose a fixed rate mortgage?

Considering fixed rate options in 2022 will require a lot of thought, and expert help is important. The things to consider are as follows:

  • What are the interest rates available for the different fixed rate options?
  • What is the health of your financial situation?
  • Do you prefer to feel confident in your outgoings for a longer period?
  • How comfortable are you with a little financial risk?
  • Do you need lower outgoings now but will be more flexible in 2 years time?
  • What is the forecast for the Bank of England base rate?
  • Are interest rates likely to rise soon?
  • Are mortgage interest rates particularly low right now?
  • What is the likelihood that your circumstances will change?

You may have answers to many of them questions, but probably not all of them. This is why an expert mortgage advisor can be helpful, as they may be able to add some clarity to your thinking when it comes to risk and the pros and cons of 2 year and 5 year fixed rate mortgages.

If you feel uncertain about which mortgage product to choose, contact Big Sky Finance for a free, no-obligation chat. We are local to the Cambridge and Royston area and can help you decide.

Give us a call on 07850 825291, email or just use the ‘contact us’ options on this page and we’ll be happy to help.


For mortgages, we can be paid by commission or a fee usually £495 or a combination of both. The actual amount will depend on your circumstances.

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