Best 2 Year Fixed Rate Mortgages
<p>We found <strong>1203 PRODUCTS </strong>in total, of which <strong>38 have links to providers</strong></p>
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Yorkshire Building Society Fixed
Yorkshire Building Society Fixed
Yorkshire Building Society Fixed
Yorkshire Building Society Fixed
first direct Fixed
Yorkshire Building Society Fixed
Yorkshire Building Society Fixed
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DisclaimerCredit 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.
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A two-year fixed rate mortgage holds the same interest rate for the first two years, regardless of the lender adjusting its prices during this period. Like other mortgages, a two-year fixed mortgage deal is typically compared by its rate, though there are other important factors to consider when choosing the best one for you.
Two-year mortgages are a popular choice for many borrowers, offering the peace of mind that comes with a fixed rate combined with greater flexibility for those who don’t want to be locked in for too long should interest rates fall.
Overall, fixed mortgage rates have been steadily declining, driven by cuts to the Bank of England base rate in 2025. However, global economic uncertainty can make it difficult to predict how lenders will reprice their deals going forward, so whether a two-year fixed mortgage is a good idea will ultimately come down to what works best for your situation.
Generally, a two-year fixed mortgage is best suited to borrowers wanting to lock in rates, but without the longer-term commitment of a three- or five-year fixed deal. If you’re on the fence about whether this type of mortgage is for you, make sure to consider the following:
The main cost associated with any fixed rate mortgage is the product fee – this can refer to the arrangement, booking or reservation of the mortgage as charged by the lender and usually costs around £1,000 (though this can vary). What’s more, if you apply for a deal through a mortgage broker, you may also need to pay a broker fee. Aside from this, there are the general costs of buying or moving home to consider, including valuation costs, legal fees and Stamp Duty, however, some of these expenses can be covered as incentives on certain deals.
Overpaying can be a good way to reduce the overall cost of your mortgage by reducing the amount of interest owed, however, it’s important not to increase your payments by too much as this often incurs an early repayment charge (ERC). Lenders tend to have an allowance of how much you can overpay a fixed rate mortgage by each year before having to pay an ERC. As long as this limit isn’t exceeded, you should be able to make either a one-off lump payment or increase your monthly contributions whenever you like, without having to pay any extra fees.
As with other fixed mortgage terms, a two-year fixed deal can cater for a range of deposit sizes outlined by its loan-to-value (LTV). For example, a mortgage offering a 60% maximum LTV can loan enough funds to cover 60% of the value of the property you’re buying or remortgaging, meaning you’d need to cover the remaining 40%. As a result, you’ll tend to find deals with lower LTVs charging more favourable rates, so having a larger lump sum upfront is likely to save you money on your mortgage.
In the past, five-year fixed mortgages charged higher rates compared to two-year deals to reflect the increased risk of lending money for longer periods, though market volatility in recent years has seen this trend flipped. It’s only now in 2025 that the market is on the verge of reverting to more traditional levels as the gap between the two sectors continues to narrow.
Meanwhile, variable mortgages often charge lower rates than any fixed rate product, at least initially, but borrowers will always be at the mercy of the lender should it decide to hike its prices. While the gamble of these mortgages could pay off and lead to lower costs overall, also take into account that your payments are likely to change each month, which can make it harder to budget your money.
If you’re approaching the end of a two-year term, there a few options over what happens next.
Do nothing – If you choose to take no action after your two-year term comes to an end, you’ll typically be transferred to your lender’s Standard Variable Rate (SVR). This tends to be much higher than the fixed price you were previously paying and could see your monthly payments rocket.
Remortgage – As the end of your term nears, you could begin searching for a remortgage deal. These mortgages are likely to work out cheaper than remaining on your lender’s SVR and, using any built-up equity from your original term, you should be eligible for remortgage deals at a lower loan-to-value (LTV) which tend to charge lower rates. Depending on how interest rates have changed since you initially took out the original mortgage, this could land you a better deal to help bring down your monthly payments. To give yourself enough time, it’s worth beginning your search for a remortgage deal around six months before your term is due to expire.
Before remortgaging, see what other options are available from your current lender. In some cases, you may be able to move to alternative rates to its SVR. It’s also worth considering your lender’s Early Repayment Charge (EPC) when remortgaging, as this can apply even after your term ends and could end up being a significant cost. As a result, it can even work out cheaper to stay on an SVR for a few months to avoid paying the fee.
Fortunately, when searching for the best 2-year fixed rate mortgage, UK borrowers have plenty of options to consider. Many will be driven primarily by finding the best rate, which 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.
Let’s say you want to buy a house for £250,000, and already have a £50,000 deposit ready to go, meaning you still need to borrow £200,000. You borrow this money over 25 years at 4.00%.
Using our mortgage repayment calculator, and assuming you repay both the capital and interest, your monthly payments in this case would come to £1,055.67. If you borrowed the same amount over 25 years, but with a two-year deal charging 5.00%, your monthly repayments would jump by £113.51 to £1,169.18.
However, if you had a £75,000 deposit, and only needed to borrow £175,000, the original deal over 25 years at 4.00% would see you only pay £923.71 each month.
Bear in mind that while some of the lower priced two-year fixed rate mortgage rates may look very appealing, they can come with an expensive arrangement fee, which can sometimes undo any benefit you would enjoy from the lower rate.
It could also be worth working out how much you will be charged at the beginning and end of your mortgage before applying, including any ERC or cancellation charges, just in case.
If you fix your mortgage for two years then your monthly payments will not change for the duration of your two-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 two-year mortgage, you can commit to spending only the fixed amount for two years before your lender can change your rate. This can 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.
Mortgage brokers remove a lot of the paperwork and hassle of getting a mortgage, as well as helping you access exclusive products and rates that aren’t available to the public. Mortgage brokers are regulated by the Financial Conduct Authority (FCA) and are required to pass specific qualifications before they can give you advice.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
Yes, in fact in some cases it can be worth starting the remortgage process before the end of your current 2-year fixed mortgage deal as it gives you more time to find a more competitive deal for your circumstances and avoid reverting to your lender’s costly Standard Variable Rate (SVR).
If you do decide to remortgage early, be aware you’re likely to wind up paying early repayment charges to help settle your current deal, so make sure you don’t end up paying more than you save.
A lot of lenders use a fixed end date on their products, which while updated regularly, can sometimes mean your deal is slightly more or less than 2 years. You can see exactly how long a mortgage is fixed for on our charts by looking below the rate on each listing.
Yes, a mortgage with a fixed end date of roughly two years is considered a two-year fixed rate mortgage on our comparison charts, however, there are also deals that will be fixed for exactly two years after the loan is made.
Mortgage porting allows you to transfer your current deal, including a 2-year fix, over to a new property, which can be useful for savings on fees and the hassle of finding a new mortgage. Keep in mind that not every mortgage can be ported, and even if yours can, you’ll still need to be reassessed by your lender to ensure you meet the requirements. You can find out more about mortgage porting here.
Again, it depends. Lately the lowest 2-year fixed rate mortgage has been getting increasingly closer to the cheapest-priced five-year rate, though historically lenders tend to charge higher prices the longer the fix to offset the increased risk. For this reason, it’s worth actively comparing the latest rates when you’re in the market for a new deal.