A 5 year fixed rate mortgage is a type of mortgage where the interest rate and monthly repayments stay the same for five years. This means that, no matter what interest rates do during that time, your mortgage payments won’t go up or down.
Choosing a 5 year fixed rate mortgage gives you long-term stability, which can be great for planning your finances without worrying about rising interest rates. It’s a popular option if you who prefer certainty and don’t want to remortgage frequently.
The main thing to keep in mind is that you’ll be tied into your deal for five years, so you should consider whether this works for your future plans. If you want to move before the 5 years are up you could have to pay an early repayment charge, which is usually between 1% and 5% of what you still owe on your mortgage agreement.
Before applying, check your credit report to make sure everything is correct. The three main credit reference agencies - Equifax, Experian, and TransUnion - offer free and paid services to help you review your credit history. Any errors could affect your ability to secure the best 5 year mortgage rate.
Find the best 5 year fixed mortgage rate
If you’re searching for the best 5 year fixed mortgage rates, our advisers can help you find the most competitive deals. We work with over 90 lenders and can compare options to find the right one for your needs.
To get started, check out our best 5 year fixed mortgage rate table, which shows the lowest rate available today. You can also start your online application to see which mortgages you qualify for.
Apply for a 5 year fixed rate mortgage with L&C
If you’re looking for the security of a 5 year fixed rate mortgage, L&C can provide all the support and advice you need to find you the best deal.
You can find the best 5 year fixed rate mortgage on the market by comparing deals online. Our Mortgage Finder will show you which deals you’re eligible for. Our mortgage advisers will be on hand to help you through the mortgage process from start to finish.
How do 5 year fixed rate mortgages work?
A 5 year fixed rate mortgage means your mortgage payment will stay the same for five years, no matter what happens to interest rates. If rates go up, your payments won’t increase, giving you protection against rising costs. However, if interest rates drop, you won’t benefit from lower rates.
Most 5 year fixed rate mortgage deals come with an early repayment charge (ERC) if you want to leave before the five years are up. This is important to consider if you think you might move home or want to change your mortgage sooner.
At the end of the five years, you’ll usually move onto your lender’s standard variable rate (SVR), which is often higher. To avoid paying more than necessary, it’s a good idea to start looking for a new deal before your fixed term ends.
If you’re looking for the best 5 year fixed rate mortgage, you can use our mortgage finder to compare deals. Our expert advisers will help you find the most suitable deal for your situation.
5 year fixed rate mortgage eligibility
Lenders have different criteria when deciding whether to approve a 5 year fixed rate mortgage. They will check that you can afford repayments now and in the future. This means they’ll look at your income, spending habits, and any expected changes in your financial situation.
To improve your chances of getting the best 5 year mortgage rate, it’s a good idea to have the following ready:
- 3-6 months of payslips
- 6 months of bank statements
- Proof of any benefits received
- P60 from your employer
- Utility bills
- Tax returns or accounts if you’re self employed
What happens when your 5 year fixed rate mortgage ends?
The main advantage of a 5 year fixed rate mortgage is that you know exactly what your monthly repayments will be for five years. This makes budgeting easier and protects you from sudden interest rate rises.
Once the five years are up, your lender will move you onto their standard variable rate (SVR). This is usually higher than the fixed rate, meaning your payments could increase. To avoid this, you should remortgage or switch to a new fixed-rate deal when your existing deal ends.
If you need to leave your mortgage before the five years are over, you’ll likely have to pay an early repayment charge (ERC), which can be costly.
Why choose a 5 year fixed mortgage over a 2 year deal?
5 year deals offer longer-term stability and may appeal to homeowners who want to lock in a rate and avoid remortgaging for a while.
A 5 year fixed rate mortgage can be a good choice if:
- You want to protect yourself against potential interest rate rises
- You don’t want to go through the hassle of remortgaging every two years
- You’re happy to commit to the same mortgage deal for five years
When you speak with L&C, we’ll search the market to find the best fixed mortgage deal for your circumstances.
What is the average 5 year fixed mortgage rate?
The interest rate you are charged depends on the particular mortgage deal you apply for. This is decided by a number of factors, including your lender, credit history, mortgage length, and how much equity or deposit you have.
There are thousands of mortgage deals currently on the market, and these deals change often, so the average rate will move around from day to day. However, you can use our online Mortgage Finder tool to see the interest rates on current deals you might be eligible for.
Apply for a 5 year fixed rate mortgage with L&C
If you’re looking for the security of a 5 year fixed rate mortgage, L&C can provide all the support and advice you need to find you the best deal.
You can find the best 5 year fixed rate mortgage on the market by comparing deals online and our Mortgage Finder will show you which deals you’re eligible for.
Begin your mortgage journey online, and we’ll be on hand to help you from start to finish.
