Advantages and disadvantages of a 5 year fixed rate mortgage
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
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
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
- 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
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
Mojo's customer says:
“Really helpful team of people. Flexible with contact and kept me up to date through the whole process.”
Christopher - Mojo Mortgages customer (December 2023)
Need more help?
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).
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.
Learn about different mortgage types
are a type of loan used to buy a property. The mortgage is secured against the value of the property.
are designed to help give you that first step on the housing ladder.
are for when your current mortgage deal comes to an end.
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.
aren't that different from a regular mortgage. But there are some important differences.
Tips & guides on mortgages
The base rates impact on your mortgage rate depends on the type of mortgage you have. Here's what you need to know.
Explore the latest UK remortgage statistics and trends, including why people remortgage, rising mortgage rates and how they affect your monthly payments.
Discover 2023's key stats, workings, and trends in our data-focused guide to buy-to-let mortgages. Be an informed landlord with Confused.com.
Uncover 2023 UK mortgage statistics. Explore mortgage market size, UK house prices, UK mortgage rates, conveyancing costs and equity release.
See the latest stats on first-time buyer demographics and prices, and compare first-time buyer mortgages for the best deals.
The first step to getting a house is making the decision about whether it's better to rent or buy.
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, and head office is WeWork No. 1 Spinningfields, Quay Street, Manchester, M3 3JE.
To contact Mojo by phone, please call 0333 123 0012.