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It makes budgeting easier – you know how much your mortgage repayments are for 5 years, and that they won’t go up in that time
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You face fewer remortgage fees – if you want to avoid the lender’s standard variable rate (SVR) you need to remortgage at the end of every deal, and you want need to do this as often with a 5 year fix compared to shorter deals
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It offers more flexibility than a longer deal – although you normally can’t leave the deal for 5 years without paying early repayment charges (ERCs), you can leave fee-free sooner than a deal that lasts longer
5 year fixed rate mortgages with Mojo
We've partnered with an expert broker, Mojo Mortgages.
Just answer some questions about your situation and let Mojo's expert advisors guide you to a mortgage tailored to your needs. And the best part of it all is, it’s completely free (yes, really!).
With access to lenders across the whole of the market, Mojo advisors strive to save you money and find your best 5 year fixed mortgage rate.
Advantages and disadvantages of 5 year fixed rate mortgages
Advantages of 5 year fixed rate mortgages:
Disadvantages of 5 year fixed rate mortgages:
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You can’t change the deal for 5 years without paying ERCs - this means that if rates fall during the deal period, you can’t take advantage of them straight away, unless you pay the fees
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It's less flexible than a shorter deal - shorter deals allow you to leave or change deals without paying ERCs faster, which might be beneficial if rates fal
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What happens when my 5 year fixed rate mortgage ends?
When any fixed deal ends, you automatically switch to the lender’s standard variable rate of interest (SVR). This almost always has a higher interest rate than other deals available, but it's also variable, so can rise or fall at any time.
Usually your mortgage lender reminds you when your 5 year fixed rate deal is coming to an end, but it’s a good idea to put the date in your diary. To avoid the SVR, you can secure a new remortgage deal around 6 months before your current one ends. You switch to it at the end of your existing deal, so you won't have to pay early repayment charges (ERCs).
What should I do when my 5 year fixed rate mortgage is coming to an end?
If your deal term is due to end within 6 months, it’s a good idea to speak to a broker who can compare mortgages that work for you. You could switch to another 5 year fix, a different length of fixed-rate, or even try a variable rate, but can usually lock in a new deal at this point.
You can either remortgage to a new lender or get another deal with the same one (known as a product transfer).
If you then see a more competitive deal before your current deal ends, you can always switch. You’re not committed to the new rate until your current deal ends and the new one begins.
How does LTV ratio impact 5 year fixed rate mortgages?
A lower loan-to-value (LTV) generally gives you access to better rates. This is the same for all mortgages, no matter what the deal length is or whether it's a fixed or variable deal.
Can I get a 5 year fixed rate mortgage if I’m self employed?
It can be more difficult for some self-employed mortgage borrowers to secure any type of mortgage.
But plenty of lenders welcome self-employed applicants. It’s definitely achievable if you can prove you have a stable income.
Learn about different mortgage types
Mortgages
Are a type of loan used to buy a property. The mortgage is secured against the value of the property. <style> </style>
First-time buyer
Are designed to help give you that first step on the housing ladder. <style> </style>
Interest-only mortgages
Are where you only pay back the interest each month. When your mortgage term comes to an end, you still owe exactly what you borrowed at the start.
Buy-to-let Mortgages
Aren't that different from a regular mortgage. But there are some important differences.
Tips & guides on mortgages
Should I rent or buy?
The first step to getting a house is making the decision about whether it's better to rent or buy.
House viewing checklist
Here's some tips to bear in mind when you view property.
What is exchange of contracts?
The final hurdle before the house is officially yours – swap contracts and insure the building.
Getting a mortgage with a gifted deposit
Buying a house is an expensive process. Gifted deposits can help.
Guarantor mortgages
We look at guarantor mortgages and how they could help you get on the property ladder.
Mortgages: early repayment charges explained
Paying off your mortgage early seems like a good idea, but you could be charged. Here's what you need to know.
YOU SHOULD THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME/PROPERTY. YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
The Financial Conduct Authority does not regulate mortgages for commercial or investment buy-to-let properties.
Confused.com is not a mortgage intermediary and makes introductions to Mojo Mortgages to provide mortgage solutions.
Confused.com and Mojo Mortgages are part of the same group of companies.Confused.com 2nd Floor, Greyfriars House, Greyfriars Road, Cardiff, CF10 3AL, United Kingdom. Confused.com is a trading name of Inspop.com Limited and is authorised and regulated by the Financial Conduct Authority. FRN 310635
Mojo is a trading style of Life's Great Limited which is registered in England and Wales (06246376). We are authorised and regulated by the Financial Conduct Authority and are on the Financial Services Register (478215). Mojo’s registered office is The Cooperage, 5 Copper Row, London, SE1 2LH.
To contact Mojo by phone, please call 0333 123 0012.
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