Best 5-Year Fixed Rate Mortgages
Editorial Note: This content has been independently collected by the Forbes Advisor team and is offered on a non-advised basis. This content is not part of the comparison service provided by Trussle Lab Limited. Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations.
At times such as now, when interest rates are rising and the cost of living has reached crisis point, fixing your mortgage rate can hold great appeal. It offers greater security around monthly household costs, peace of mind, and even potentially value for money.
But what length of fix should you take?
According to industry body UK Finance, the number of borrowers opting for longer-term 5-year deals has increased significantly in recent years, from less than 30% in 2017 to around 45% in 2021.
What are the best 5-year fixed rate mortgages?
We worked with our mortgage partner, online broker, Trussle to identify what we believe to be the best lenders for 5-year fixed rate mortgage deals. You’ll find more on how the lenders are ranked with our methodology, below.
It’s important to note that all of these deals require an excellent credit score as well as proven income and sufficient affordability for the loan.
* Average number of days to process a successful mortgage application at the lender for Trussle customers (overall average is 20 days). Data from Trussle as of 2020. Speeds vary depending on your circumstances, application and the lender’s current performance, so the average quoted speed may not reflect your own experience.
**Fairer Finance, March 2022
What’s our methodology?
We asked our mortgage partner Trussle for the average (median) cost of a five-year fixed rate mortgage offered by lenders in the last month (February 2022).
The data combines deals for both purchasers and remortgagers and fee and no-fee deals, with deposits of 40%. We then converted the average rate into a cost value score out of five.
We also used Trussle data to look at the time it took to process a successful mortgage application for each of the listed lenders. However, this can vary considerably according to application and circumstances.
Finally, we considered customer service scores, as provided by independent data provider, Fairer Finance. We combined this data to arrive at our Forbes Advisor Star Rankings.
As is true with all fixed rate mortgages, five-year deals tie you in for the term and early redemption charges (ERCs) apply if you want to redeem the loan early. That said, it’s possible to make overpayments of up to 10% a year without penalty. You’ll find more information on this at our FAQs.
Trussle compares mortgage deals from more than 90 lenders including all the major high street names. Although note that a handful of lenders including First Direct and Lloyds Bank do not work with brokers.
While all information is correct at the time of writing, rates and deals are subject to change
What are fixed-rate mortgages?
All mortgages come with an interest rate – the cost of borrowing from a bank – which can be either fixed or variable. With fixed rate mortgages, it remains static and remains so for an agreed period. With variable rate mortgages, the rates could go up or down in the future.
Fixed rate terms typically last for two, three, five, 10 or even 15 years. Not every lender offers each of those terms – and two and five-year deals are most common.
Homebuyers or homeowners wanting a fixed rate must decide how long to fix for. Decisions will hinge on factors such as likelihood of moving house in the near future, attitude to risk and expected changes in finances or the economy.
What 5-year mortgage deals are available?
You can find out the real-time costs of a 5-year fixed rate mortgage by using our mortgage tables, powered by Trussle, below. You’ll need to enter your personal criteria, and whether it’s a new mortgage or a remortgage.
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