Compare 5-Year Fixed Rate Mortgages

All mortgages come with an interest rate, which is the cost of borrowing from the bank. The rate can either be fixed or variable.

With fixed-rate mortgages, the rate you pay remains static for an agreed period. With variable rate mortgages, the rate could go up or down from month to month.

Fixed rate mortgages can last one, two, three, five, seven, ten or even 15 years. Not every lender offers each of those terms – and two and five-year deals tend to be the most popular.

Homeowners wanting a fixed rate must decide how long to fix for. Factors to consider when thinking about fixed rate mortgages include the likelihood of moving house in the near future, your attitude to risk, and expected changes in finances or the economy.

It is also important to remember that, as with any mortgage, your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

You can find out the real-time costs of a five-year fixed rate mortgage by using our mortgage tables, powered by our mortgage partner Better.co.uk, at the top of this article.

You’ll need to enter your personal criteria, and whether it’s a new mortgage or a remortgage.

The rate you pay on a five-year fix, or any other term, will primarily hinge on your loan to value (LTV). This refers to the size of your mortgage borrowing relative to the value of your property. For example, if your home is worth £350,000 and your mortgage is £280,000 then the loan to value ratio is 80%.

Lenders tend to offer mortgage rates in LTV bands from 60% LTV, 75% LTV, 80% LTV, 90% LTV and 95% LTV.

Generally speaking, the lower your LTV ratio the more competitive the mortgage deal you’ll be offered, which means lower fixed interest rates and cheaper monthly mortgage payments.

Borrowers with a high LTV (meaning they have a small deposit or equity in their home) will usually pay higher fixed rates.

The rate will also depend on what’s happening in the market. In the past taking a longer fixed-rate term, such as three or five years, usually meant a higher rate (in return for the longer stability).

Today however, that is not always the case. At the time of writing (June 2025) the margin between fixed rates over two-, three-, and five years is narrow. For this reason it makes sense to pick the mortgage term that suits your needs best.

If you haven’t remortgaged in a while, such as five years, rates on all new deals will be more expensive.

Around 250,000 to 300,000 mortgage holders came to the end of their fixed rate deal each quarter in 2024, according to data from the Office for National Statistics (ONS).  The below graph shows that the majority of those borrowers had been paying rates of 2.5% or lower. This means they would have seen costs rise considerably on any new fixed rate deal.

There are several fees that could be associated with a five-year fixed rate mortgage. We’ve highlighted some of the key costs on borrowing of £250,000.

Potential fees on a £250,000 mortgage

NAME OF FEE	TYPICAL COST ON A £250,000 MORTGAGE	WHAT IT PAYS FOR
Mortgage booking fee	£150	A handful of lenders may charge this non-refundable fee to secure a mortgage
Mortgage product or arrangement fee	£999	Fee to arrange the mortgage which is applied to the best fixed rate and tracker deals
Property valuation fee	£300	Fee charged by the lender to ensure the property value is adequate security for the loan you want to secure against it
Legal fees	£800 to £1,500	Fee paid to the solicitor or property lawyer to carry out the conveyancing or legal work. The cost will vary based on the value of your mortgage
Broker fees (*many brokers don’t charge a fee to borrowers)	£700	Typical flat-rate fee if you use a fee-charging broker. Although some brokers may charge the fee as a percentage of the loan
Total estimated charges	£3,649

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Another cost to bear in mind is stamp duty. Whether or not you’ll have to pay will depend on the value of the property. First-time buyers are given a higher nil-rate band of £300,000 for stamp duty (on homes worth up to £500,000). This compares to other buyers who only get the first £125,000 of a property purchase price tax-free.

Early repayment charges (ERCs) could apply if you make an overpayment of more than 10% in one year, or you redeem (pay off) the mortgage during any tie-in period. ERCs are usually around 1% to 5% of your outstanding home loan.

At the end of a fixed rate term borrowers will be moved onto their lender’s standard variable rate (SVR), unless they apply ahead of time for a new fixed rate, tracker rate or discounted variable rate deal.

Borrowers can search and apply for a new mortgage deal up to six months before the end of their existing fixed rate deal, so there should be no need to pay a high SVR.

Pros

• longer-term shelter from potential interest rate rises
• five-year rates can sometimes be cheaper than two years
• only one arrangement fee is payable in five years.

Cons

• won’t benefit from potential falling interest rates
• tied into early repayment charges (ERCs) for five years
• many ERCs are more expensive in the first few years.

If you don’t want to fix your mortgage rate,  you could opt for a tracker rate or discounted variable rate loan. As its name suggests, a tracker deal will track the Bank of England Bank Rate, usually at a set margin above this rate.

Discounted rates usually track the lender’s standard variable rate. Both trackers and discounted rates are variable and can rise and fall from month to month.

We obtained data from our mortgage partner Better.co.uk, showing which lenders have offered the lowest rates on five-year fixed rate mortgage deals over the last three months. We used the median average cost across all deposit levels (data correct from June 2025).

To arrive at our Forbes star ranking, we also considered average mortgage approval times (from submission to offer) over the last three months and customer experience scores as determined by independent data provider, Fairer Finance (correct as of June 2025).

Mortgage offers at all lenders listed are valid for six months.

Bear in mind that these figures are just averages. Exact costs of any mortgage will vary according to your deposit level (or equity you have in your property), credit score, and whether you opt to pay a fee to access a cheaper rate.

Mortgage rates and offers also change frequently – lenders that have presented the best value over the last three months may not present the best value in the next three months

A mortgage broker, such as Better.co.uk, can provide guidance on which options make the most sense for your circumstances.

*Average mortgage costs can vary between sources depending on how the data is gathered. Better.co.uk’s data refers to the average cost of the primary fixed rate mortgage recommendation that is issued to applicants based on their circumstances from its 100-plus panel of lenders.

* Rate refers to average (median) cost of ‘no-fee’ five-year fixed rate mortgages across all loan to value categories for remortgaging and purchase deals as offered by online broker, Better.co.uk in the last complete three months (data correct as of June 2025)

**Average number of days the lender took to process mortgage applications from submission to approval in the last three months. Data for Better.co.uk customers (overall average was 43 days), accurate as of June 2025.  Approval times vary according to circumstances, application and the lender’s current performance, so the average quoted speed may not reflect your own experience.

*** Fairer Finance (customer experience scores) June 2025.

Better.co.uk compares mortgage deals from more than 100 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 frequent change.