Can I leave a five-year fixed mortgage early?

Yes, you can leave a five-year term early, but you will probably need to pay an Early Repayment Charge (ERC) , which can be a hefty fee. The ERC is usually a percentage of your outstanding balance and typically reduces through the term of the fixed rate, which means the highest charge to exit a fixed rate is in year one, reducing to the smallest amount in the final year. However, depending on the reasons why you want to end your fixed deal early, this cost may be worth paying. Always check the terms of your mortgage deal if you’re thinking of leaving it early and seek advice if you need further support with your decision.

What happens when my five-year fixed term ends?

Lenders should get in touch when your five-year fixed term is coming to an end, usually several months beforehand. If you do nothing, the lender will automatically move you over to its Standard Variable Rate (SVR), which tends to be much costlier and could increase your monthly repayments. Instead of going on the SVR, borrowers can instead lock into a new deal with their existing provider or remortgage to a different lender. You can shop around for a new mortgage deal and typically lock in a rate a few months before your current deal ends (depending on the terms of the lender).

Is a 5-year fix better than a 2-year fix?

This depends on your circumstances and preferences. Five-year mortgages typically charge higher rates than two-year fixes, but they can also protect borrowers from rising interest rates for longer. However, some borrowers may prefer the flexibility of locking into a shorter term, and a two-year fix could prove more beneficial should prices fall instead. If you’re stuck between the two, you could instead compromise with a three-year deal . Speak to a mortgage broker for professional advice if you need help deciding what type of deal to choose.

Do all five-year fixed rate mortgages come with fees?

No. While many fixed mortgages, including fixed rate five-year products, charge a product or arrangement fee when taking out a deal, there are a few options that come with no added product fees. However, mortgages may come with other charges, such as valuation and legal fees, so always double check with the lender to find out what fees may apply. Even though fee-free deals may be appealing, it’s important to consider the overall cost of the mortgage (including the interest rate and any incentives) to determine whether it’s a suitable option for you.

Can I overpay on a five-year fixed mortgage?

Yes, however, it’s worth checking with your lender first to find out how much you can overpay your mortgage by each year without having to pay an Early Repayment Charge (ERC). As long as you don’t exceed your lender’s annual allowance, you should be able to make overpayments either as a lump sum or by raising your monthly repayments.

What happens to my five-year fixed mortgage if I move house before the term ends?

If your lender allows it, the best way to move home before the end of your 5-year term could be to port your mortgage to the new property. While this avoids paying any of the fees of taking out a new deal as well as Early Repayment Charges (ERC), note you’ll still need to be reassessed and approved by your lender. However, as not every mortgage can be ported, your only other option in this case is to pay off the fixed deal before moving, which will almost certainly involve paying an ERC.

Will I automatically be switched to the best deal when my five-year fixed rate ends?

It’s unlikely. As mentioned above, a lender will usually move you to its Standard Variable Rate (SVR), which is often a lot higher than the fixed price you were previously paying. To avoid seeing your monthly payments climb sharply, it’s therefore worth trying to remortgage.

Can I get a five-year fixed mortgage if I’m self-employed or have irregular income?

Yes, but you may find it more challenging to get accepted. Since it can be harder to demonstrate the stability of your income, lenders tend to be stricter with their criteria when deciding if you can afford the mortgage. This criteria varies from lender to lender, so speaking to a mortgage broker can help you find a deal based on your individual situation.

Do five-year fixed rate mortgages affect my credit score?

Yes, applying for any sort of mortgage involves a lender performing a hard check on your finances, which will show up on your credit report and therefore affect your score – at least temporarily. However, making your mortgage payments on time can then help build your score over time.

Latest 5 Year Fixed Mortgages | Rates Updated Throughout Day

Home Mortgages 5 year fixed rate

Looking for the best five-year fixed rate mortgage in the UK? These mortgages can provide borrowers with more certainty and stability as the interest rate, and the monthly repayments, remain the same for five years.

Our chart below is updated throughout the day to help you compare the best five-year fixed rate mortgage deals from leading UK lenders. Find today’s lowest rates with Moneyfactscompare.co.uk, an established comparison site that has helped consumers find the most competitive deals on the market for 25 years.

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