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Best 3 Year Fixed Rate Mortgage

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Other fixed rate terms

Best 3 Year Fixed Rate Mortgages

Best 3 Year Fixed Rate Mortgages

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We found 311 products in total, of which 50 have links to providers.

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Selecting ‘Provider Links First’ brings all products that you can apply for directly via Moneyfacts to the top of the chart in rate order. Products that do not have an ‘Go To Provider's Site’ button will appear below, again in rate order. Selecting an option from the drop-down will change the chart to list all products in order depending on the option you have selected, with the best rate being at the top. Products that have ‘Go To Provider's Site’ links will still be in the list but in rate position.

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  • Nationwide BS Fixed
    Rate
    4.69%
    4.69% Fixed for 3 years
    reverting to 7.99%
    APRC
    7.3%
    Max LTV
    60%
    Product Fees
    £999.00
    Initial Payment
    £1,235.34
    Total Over
    Go To Provider's Site
  • first direct Fixed
    Rate
    4.78%
    4.78% Fixed for 3 years
    reverting to 6.99%
    APRC
    6.6%
    Max LTV
    60%
    Product Fees
    £490.00
    Initial Payment
    £1,246.62
    Total Over
    Check Eligibility
  • Yorkshire Building Society Fixed
    Rate
    4.79%
    4.79% Fixed to 31/08/2027
    reverting to 6.05%
    APRC
    7.1%
    Max LTV
    75%
    Product Fees
    £1,495.00
    Initial Payment
    £1,247.88
    Total Over
    Go To Provider's Site
  • first direct Fixed
    Rate
    4.88%
    4.88% Fixed for 3 years
    reverting to 6.99%
    APRC
    6.6%
    Max LTV
    75%
    Product Fees
    £490.00
    Initial Payment
    £1,259.21
    Total Over
    Check Eligibility
  • Nationwide BS Fixed
    Rate
    4.89%
    4.89% Fixed for 3 years
    reverting to 7.99%
    APRC
    7.3%
    Max LTV
    60%
    Product Fees
    £0.00
    Initial Payment
    £1,260.47
    Total Over
    Go To Provider's Site
  • first direct Fixed
    Rate
    4.98%
    4.98% Fixed for 3 years
    reverting to 6.99%
    APRC
    6.6%
    Max LTV
    60%
    Product Fees
    £0.00
    Initial Payment
    £1,271.87
    Total Over
    Check Eligibility
  • first direct Fixed
    Rate
    4.98%
    4.98% Fixed for 3 years
    reverting to 6.99%
    APRC
    6.6%
    Max LTV
    85%
    Product Fees
    £490.00
    Initial Payment
    £1,271.87
    Total Over
    Check Eligibility
  • first direct Fixed
    Rate
    4.98%
    4.98% Fixed for 3 years
    reverting to 6.99%
    APRC
    6.6%
    Max LTV
    80%
    Product Fees
    £490.00
    Initial Payment
    £1,271.87
    Total Over
    Check Eligibility
  • Yorkshire Building Society Fixed
    Rate
    5.04%
    5.04% Fixed to 31/08/2027
    reverting to 6.05%
    APRC
    7.2%
    Max LTV
    80%
    Product Fees
    £1,495.00
    Initial Payment
    £1,279.49
    Total Over
    Go To Provider's Site
  • Yorkshire Building Society Fixed
    Rate
    5.09%
    5.09% Fixed to 31/08/2027
    reverting to 6.05%
    APRC
    7.2%
    Max LTV
    85%
    Product Fees
    £1,495.00
    Initial Payment
    £1,285.86
    Total Over
    Go To Provider's Site
Representative Example
Note

Mortgage Advice Bureau offers fee free mortgage advice for Moneyfacts visitors that call on 0808 149 9177 or email moneyfacts@mab.org.uk. If you contact Mortgage Advice Bureau outside of these channels you may incur a fee of up to 1%.

Any contractual relationship will be with Mortgage Advice Bureau.

Disclaimer

Credit 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.

Provider Links

‘Go To Provider's Site’ links are where we have an arrangement with a provider so you can move directly from our site to theirs to view more information and apply for a product. We also use ‘Speak to A Broker’ links where we have an arrangement with a preferred broker to move you directly to their site. Depending on the arrangement we may receive a modest commission either when you press a 'Go To Provider's Site' or 'Speak To A Broker' button, when you call an advertised number or when you complete an application following a link from our website.

3 year fixed rate mortgages explained

A three year fixed mortgage is a mortgage that keeps the interest rate fixed for the first three years that you have it, meaning you can know the exact amount you’re going to need to repay every single month until the deal ends. After the initial fixed rate period of three years ends, your lender will automatically transfer you to their revert rate, which may be a standard variable rate (SVR) or other managed interest rate, which will tend to be much higher. This is why most borrowers will want to make sure they remortgage to a new fixed (or discounted variable) rate deal when the old one ends, to avoid seeing a spike in their repayments.

Should I fix my mortgage for three years?

Whether three years is the best term for your needs will largely depend on the wider economic environment, as well as your personal circumstances. That said, three years could be the perfect amount of time if you want some repayment security and a reasonably-priced fixed rate.

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Who is a three year fixed mortgage for?

Three-year mortgages are most suitable to people who wish to have certainty over their mortgage repayments for the medium term. The table above allows you to easily see how big a deposit/equity you will need for each mortgage, while the details tell you whether the product is for home buyers, remortgagors or both.

As with any mortgage application, you’ll want to make sure that your credit rating is as good as it can be – alongside whether you can afford the repayments, this is the main thing lenders will look at when deciding if you are eligible for their product. Keep in mind as well that if you apply for a mortgage and get rejected, your credit rating will likely be negatively affected, so make sure you have all your ducks in a row before you submit an application.

Should I speak to a mortgage broker?

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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MAB is the preferred mortgage broker of MoneyfactsCompare

 

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Call 0808 149 9177 or request a callback

Mortgage Advice Bureau offers fee free mortgage advice for MoneyfactsCompare visitors that call on 0808 149 9177. If you contact Mortgage Advice Bureau outside of these channels you may incur a fee of up to 1%. Lines are open Monday to Friday 8am to 8pm and Saturday 9am to 1pm excluding bank holidays. Calls may be recorded.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Advantages of a three-year fixed mortgage

The main advantage of a three-year fixed rate mortgage is that it can provide you with a longer period of repayment security than a two-year deal. Additionally, it means you do not need to search for a new mortgage as quickly and pay any fees associated with a new mortgage again after just two years. Also, in contrast to a five year or even a ten year mortgage, you would still be able to reassess your mortgage after three years, at which point the market might have changed enough that it makes sense to remortgage.

Disadvantages of a three-year fixed mortgage

If mortgage rates drop within the following three years, you could end up paying over the odds. However, even if this happens and remortgaging early would make a substantial difference, you usually have the option to switch earlier – on payment of a fee. The same fee tends to apply if you choose to repay your mortgage early, with the cost typically being higher the earlier you try to leave the deal, which is why it might be wise to keep these charges in mind when deciding which mortgage to choose.

Another potential disadvantage, depending on the deal you find, is that fixed rate mortgages tend to come with higher fees than variable rate products. Fixing for three years might also be unsuitable for those who are planning to move in the next few years, as not all mortgages will allow you to take the deal with you when you move, and those that do may charge hefty fees for the privilege – even more reason to compare mortgages before committing to a deal.

Alternatives to a three-year fixed mortgage?

If you can't find a product that's right for you, don't worry – try our quick and easy mortgage comparison to access a fully comprehensive list of all mortgages, based on your criteria.

Pros and cons of three-year fixed rate mortgages

  • Longer repayment security. You'll be able to budget reliably, for longer, knowing that your mortgage repayments won't change for three years.
  • More competitive interest rates. Although the rates are not as low as two-year fixed rate mortgages, three-year fixed rate mortgages offer better interest rates than mortgages with a five-year fixed rate.
  • Remortgage less often. You won't have to look for new mortgage deals as often as you would with a shorter-term mortgage.
  • Higher arrangement fees. Fixed mortgages tend to come with higher fees than variable rate mortgages.
  • No benefit from interest rates reductions. If the Bank of England base rate drops during your fixed term, your rate will remain the same and you therefore will not benefit from any subsequent drop in rates.

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