Best fixed rate mortgages

What is a fixed rate mortgage?

A fixed rate mortgage is a common and popular type of mortgage that means you pay a fixed rate of interest for a specified term.

This guarantees that the interest rate won’t change and that your mortgage payments will stay the same over a set period of time, until the fixed term ends.

Two- and five-year fixed mortgage terms are particularly common, but three-year fixed deals are also available, as well as mortgages with 10-year fixed terms.

Who are fixed rate mortgages best for?

Fixed mortgage deals are a popular option for homeowners who want the certainty that their mortgage payments won’t change for a set period. This can make it easier to budget and protects them from any potential increases in rates (for the duration of the fixed term).

Different types of buyers may opt for fixed mortgages.

• First-time buyers may choose a fixed mortgage so they have some stability during their first years of homeownership. After all the expenses involved in buying a first home, knowing exactly what their monthly mortgage payments will be can give new homeowners some peace of mind.
• Those moving home may also want the certainty offered by a fixed mortgage after the costs and upheaval of moving, especially if they need to budget for any renovations or improvements.
• Homeowners who have come to the end of a deal and are on their lender’s standard variable rate (SVR) could cut costs by remortgaging to a fixed rate deal.
• Any borrowers who are worried about mortgage rates rising may prefer to lock in a guaranteed rate on a fixed mortgage so there’s no risk that their payments will become more expensive during the term.

To help you work out if a fixed mortgage is right for you, and what specific fixed deal might be the most suitable, it’s a good idea to get tailored advice from a mortgage broker.

How long should you fix for?

It’s up to the individual borrower to decide how long to fix for. Short- and long-term fixed deals have their own advantages and disadvantages, which borrowers should weigh up when selecting their mortgage.

Is now a good time to get a fixed rate mortgage?

One of the best times to get a fixed mortgage is when interest rates are at their lowest, as this means you can lock in a cheaper deal and continue to benefit from a low interest rate even if rates increase.

By contrast, when mortgage rates are high and at their peak, locking into a fixed rate deal may mean you end up paying more than necessary if rates start to fall and cheaper deals become available.

But, while this is a good rule of thumb, it’s impossible to know for certain whether fixed mortgage rates will go up or down over the coming years as many different factors affect the interest that lenders charge.

In summer 2025, the best mortgage fixed rates are significantly lower than the previous two years. For example, the average two-year fixed rate stood at 5.01% at the start of August 2025, compared to 5.77% in 2024 and 6.85% in 2023. Similarly, the average five-year fixed rate dropped to 5.01% in August 2025, falling from 5.38% and 6.37% in 2024 and 2023 respectively. As a result, many borrowers may consider now to be a good time to get a fixed rate mortgage.

However, some borrowers may decide to wait and see if interest rates fall before fixing or opt for a variable mortgage instead. But it’s important to bear in mind that the market can change quickly, so there’s always the risk that interest rates could start rising again.

Regardless of what’s happening in the wider market, fixed rate mortgages are always worth considering if borrowers want the certainty that their mortgage payments won’t change for a specified period.

Moreover, if borrowers are coming to the end of an existing deal, it may be a good time to take out a fixed deal if the alternative option is reverting to their lender’s standard variable rate (which is likely to be more expensive).

Ultimately, whether you should choose a fixed mortgage or not depends on your individual situation and preferences, as well as the current state of the market. Speaking to a mortgage broker can help you to work out the right option for you.

What are mortgage rates likely to do over the next year?

In general, mortgage rates are widely expected to continue their overall downward trend from their peak in August 2023. However, any drops are likely to be relatively gradual, particularly with the relatively high level of inflation casting some doubt on the chances of any further cuts to the Bank of England’s base rate in 2025.

Predicting the direction of mortgage rates is difficult as so many different factors affect the interest that lenders charge. Moreover, the market can change very quickly depending on the political and economic situation, both in the UK and globally, which can make predictions even more challenging.

For example, political statements, such as US President Donald Trump’s tariff announcements, and Government Budget statements can have a significant and unexpected impact on the mortgage market (as shown after the mini-Budget in autumn 2022).

This means that any mortgage rate predictions for the coming year could quickly change, depending on the situation. This unpredictability is why many borrowers can benefit from speaking to an independent mortgage broker and also why many may choose the relative stability offered by a fixed mortgage.

How much deposit do I need for a fixed rate mortgage?

The deposit you need will depend on the value of the property you are buying and the mortgage deal you choose. It’s possible to get a fixed rate mortgage with deposits of different sizes, but your deposit will affect the deals you qualify for and the interest charged.

Deposits and loan-to-value

Loan-to-value (LTV) is the ratio of the amount you borrow on your mortgage against the value of your property. For example, if you want to buy a property worth £300,000 and you can cover 10% of the cost with a £30,000 deposit, your LTV ratio is 90%.

Use our LTV calculator to quickly work out your loan-to-value.

As a minimum, you typically need a deposit (or equity in your home) worth at least 5% of your property’s value. This means you could then get a 95% LTV mortgage to cover the remaining cost. However, there are a handful of lenders that may offer mortgages if you have a smaller deposit than this, and some that may offer 100% LTV mortgages if you have no deposit at all.

Typically, the smaller the deposit, the higher the interest rate charged on the mortgage because of the increased risk to the lender. The best fixed mortgage rates UK providers offer are generally reserved for borrowers with a larger deposit. As a result, it’s worth trying to build up as large a deposit as possible to increase your chances of getting a more competitively-priced mortgage.

How is a fixed rate mortgage different from a tracker mortgage?

The key difference between a fixed mortgage and a tracker mortgage is the interest rate. While the interest charged on a fixed rate mortgage remains the same during the term, interest on a tracker mortgage follows the direction of a specified central rate (usually the Bank of England’s base rate) and could increase or decrease during the term.

This means that monthly payments on a fixed mortgage won’t change for the specified period, whereas the monthly payments on a tracker mortgage could become cheaper or more expensive.

Fixed mortgages and tracker mortgages may also offer different amounts of flexibility. For example, tracker mortgages may allow you to change deal (such as switching to a fixed deal) without any penalties, whereas most fixed mortgages would charge a penalty fee if you want to switch to a different deal. However, this can vary between lenders.

What is the lowest fixed rate mortgage I can get?

The cheapest fixed rate mortgages are typically found on deals at 60% LTV (which means you need a deposit to cover 40% of your property’s value). The larger your deposit, or the more equity you own in your home, the more likely you are to qualify for some of the lowest rates.

However, lenders look at many other factors alongside your deposit, including your income, expenditure, employment status and credit history to decide what interest rate to charge.

Lenders can change their fixed mortgage rates relatively quickly so, to see the most up-to-date list of the best fixed rate mortgages UK providers are offering now, visit our charts above. They show the current fixed mortgage rates available for different buyers and different LTVs, whether you own 40% equity in your home and are looking to remortgage or you’re a first-time buyer with a 5% deposit.

Can I overpay my fixed rate mortgage?

Most fixed rate mortgages allow you to make overpayments, typically up to 10% of the outstanding balance per year. Particularly if you are in the earlier years of your mortgage, these overpayments can significantly reduce your overall mortgage term.

Even though most lenders allow you to overpay your mortgage by up to 10% each year without charging any fees, if you want to overpay more than this or pay off your mortgage in full, an early repayment charge may apply.

Can I pay off my fixed rate mortgage before it ends?

It’s possible to pay off a fixed mortgage before the end of the term, but you will probably need to pay some fees to do so, including an early repayment charge (ERC).

Lenders typically calculate the ERC as a percentage of the total balance left outstanding on your mortgage (or the balance you want to overpay). This percentage normally decreases as you approach the end of your fixed term.

Some lenders may also charge an exit fee, which covers the administration costs involved with paying off a mortgage in full.

As a result, it’s important to consider how much it will cost to pay off your mortgage early and weigh this up against the money you could save on interest.

Contact your lender if you’re thinking of paying off your fixed mortgage to see how much you may need to pay overall (including any fees) to clear your balance in full.

What is the longest fixed rate mortgage available?

There are currently several lenders offering mortgages with fixed terms of 10 years and a handful of deals offering 15-year fixed terms.

While these mortgages may appeal to borrowers who want to guarantee their monthly payments won’t change for a longer period, they often charge significantly higher interest rates than mortgages with terms of five-years or less.

Moreover, a lot can happen in 10 years, so locking into a fixed mortgage deal for this length of time is a big commitment to make. Get professional advice from a mortgage broker before taking out a mortgage of this length to ensure you understand the implications and whether it’s right for you.

What happens when the fixed rate mortgage ends?

At the end of a fixed rate mortgage, most lenders will automatically move you onto their standard variable rate (SVR). Borrowers could choose to remain on the SVR for the rest of their mortgage term, but this is likely to be more expensive than switching to a new fixed or variable rate deal.

Instead of reverting to the SVR, borrowers can choose to remortgage to a new fixed (or variable) mortgage deal once their existing deal ends. They could stay with their current lender or see if a different lender can offer a more affordable and suitable deal.

It’s a good idea to look at rates and deals around four to six months before the end of your existing mortgage deal. This gives you time to compare options and get advice so you can secure a new deal that starts as soon as your current fixed term ends.

Is a fixed rate mortgage a good idea for an investment property?

If you are buying a property with the intention of letting it out, a fixed mortgage can be a popular choice as it means your mortgage payments will be predictable and remain the same for the specified term. This can make it easier to budget and balance your expenses against your income.

However, you will need a specialist buy-to-let mortgage to purchase an investment property. It’s possible to find buy-to-let mortgages with fixed terms of two-, three- and five-years, like residential mortgages, but it’s worth noting that many buy-to-let mortgages are interest-only, which means you only need to pay off the interest each month. Find out more and compare rates on our buy-to-let mortgages chart.