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  • Writer's pictureMortgageLadder

Is it advisable to opt for a five-year fixed-rate mortgage?

Currently, there isn't much disparity between the interest rates offered on two-year and five-year fixed mortgages. As of June 2023, the average interest rate for a two-year fixed mortgage is approximately 6.01%, while the average rate for a five-year deal is slightly lower at around 5.67%.

By choosing a five-year fixed-rate mortgage instead of a shorter-term option, you gain certainty and protection against potential future increases in mortgage rates. However, the trade-off is that if mortgage rates were to decrease during the five-year period, you would remain locked into the higher rate. It's important to consider that if your plans change and you decide to move before the five-year term is complete, you may likely incur early exit charges unless you have a portable mortgage deal. Given the high degree of market volatility witnessed over the past six months, it's challenging to make accurate predictions about the future. Therefore, when deciding between a two-year or five-year mortgage, it's crucial to evaluate your individual circumstances and make a decision accordingly.

For a personalised review of your mortgage requirements and to discuss your options, please reach out to one of our expert mortgage brokers using the link


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