# Two-year fix vs five-year fix mortgage — which is right for you?

> Compare · Last reviewed 26 May 2026

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## Quick answer

A two-year fix gives short-term payment certainty and lets you remortgage sooner — useful if you expect rates to fall. A five-year fix locks in your rate for longer, with bigger early repayment charges if you leave early.

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Both are 'fixed-rate' mortgages in the UK — your interest rate doesn't move during the deal period. The trade-off is how long you want to lock in versus how often you want the freedom to remortgage.

## Two-year fix vs Five-year fix

| Criterion | Two-year fix | Five-year fix |
| --- | --- | --- |
| Length of fix | Two years | Five years |
| Rate level | Usually slightly higher or lower than 5-year, depending on the yield curve | Often priced off longer-term swap rates |
| Payment certainty | Short | Medium-term |
| Early repayment charge (ERC) | Typically 1–2% in years 1–2 | Typically 5% reducing to 1% across years 1–5 |
| Refinancing cost frequency | Every 2 years (product/valuation/legal fees) | Every 5 years |
| If rates fall | Can remortgage sooner to a cheaper deal | Locked in (ERC applies) |
| If rates rise | More frequent renewal risk | Protected for longer |

## When Two-year fix suits

- You think rates will fall over the next 2–5 years
- You may want to move home or change product soon
- You want lower ERCs if circumstances change
- You're happy to absorb remortgage fees more often

## When Five-year fix suits

- You want long-term payment certainty
- You don't plan to move or significantly change the loan
- You want to avoid frequent remortgaging costs
- You're risk-averse to rate rises

## Frequently asked questions

### Can I overpay during a fixed period?

Most fixed-rate mortgages allow penalty-free overpayments of up to 10% of the balance each year. Above that, the early repayment charge usually applies. Check the offer document.

### What is the ERC if I leave a five-year fix early?

Typically a tiered percentage of the outstanding balance — for example 5% in year 1, falling by 1% each year to 1% in year 5. Each lender's schedule is different.

### Are there fixes longer than five years?

Yes — 7, 10 and even 30-year fixes exist in the UK, though far less common. Trade-off is even longer ERC commitment.

## Sources

- [GOV.UK — Buying a home](https://www.gov.uk/buying-a-home/preparing-to-buy)
- [Bank of England — Bank Rate](https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate)

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.