How long should I fix my mortgage for?
- Free No-Obligation Consultation
- Access to Competitive Rates
- We Find the Right Lender for You!
Get in touch for a free, no-obligation chat with an adviser about how we might be able to help.
Request A Callback
A bit about our adviser Steven
There’s more to me than just mortgages. I also have a love for the countryside and a unique venture – my alpaca farm. Nestled in the countryside near York, my alpacas are not just my furry friends, but also a testament to my dedication to diverse interests.
Why Alpacas?
Alpacas, much like mortgages, require careful attention, understanding, and a keen eye for detail. Just as I meticulously evaluate mortgage options, I apply the same level of diligence in caring for and nurturing my alpaca herd. This blend of financial acumen and agricultural expertise sets me apart in the world of mortgage brokering.
How long should I fix my mortgage for?
Steven Hargreaves explains all you need to know about fixed-rate mortgages and how to decide which length to choose. Episode recorded in March 2026.
Should I fix my mortgage and for how long? Should I fix my mortgage for two, five or ten years?
I get asked this at almost every single mortgage appointment. It’s a challenging question, because even though I’ve done the job for 30 years, I just don’t know what’s going to happen in the next year, two years, five years or longer. A perfect example is a client I saw last night. They’ve been in their property for seven years and spent a lot of money adding a big extension on the back and side. They’ve added significant value. They weren’t sure how long to fix their next mortgage for, and I said that they shouldn’t second-guess what interest rates will be. The last three or four years have been incredibly volatile. We’ve seen interest rates move from around 1% up to more than 6%. We’re currently in March 2026 and rates are currently at around the average of the last four or five years. But that can change in an instant. Those clients have no intention of moving house. They plan to stay certainly for five years, to see the kids through to high school. The youngest is six. So a five-year fix could be beneficial for them. I always look at a client’s circumstances rather than guess what interest rates might do.What’s the current situation with interest rates?
As we stand here in March 2026, there’s a new conflict between Iran, Israel and the USA. The effect of that has been fairly instant. Swap rates have increased, leading fixed rates to increase. Two high street lenders have just announced they will increase their rates, starting tomorrow. That’s the volatility of the market. So just look at your own circumstances. Perhaps you’ve no intention of moving. Or, you might plan to buy a house, do some work on it and sell it within a couple of years. In that case, there’s no point in getting in bed with a lender for five years. You could choose a two-year fixed rate, and there’s also a three-year fix. That’s a nice option because a two-year fix comes around so quickly. I would tend to contact a client six months before their deal’s due – that’s only 18 months away. I’ll probably still be wearing the same shirt as when I arranged the mortgage. Three years can just give you a little bit more stability.What are the advantages and disadvantages of a fixed-rate mortgage?
The advantage is stability. Your alternative is to go onto the standard variable rate, which is considerably higher, and can go up and down as rates increase or decrease. A tracker rate mortgage or a discounted mortgage, again, will vary in line with the Bank of England base rate or the lender’s standard variable rate. A fixed rate gives you stability. You know how much your mortgage is going to be each month, and that’s it. That’s good for everyone, but especially a first-time buyer. They might have been living with their parents and not be used to paying that mortgage, plus gas, electricity and council tax bills. Stability is always nice there. The disadvantage is that if you choose a five-year fixed rate and then you decide to move house two or three years later, you either pay early repayment charges or you’ve got to port your mortgage to another house. That lender might not be the best one at that stage, but you’ve got no option because you want to avoid the penalty. So, fixed-rate deals can be inflexible if you decide to move house.How do standard or average rates vary on different fixed-term mortgages?
It’s a bit unusual at the moment. A year or two ago, a five-year fixed rate was significantly cheaper than a two-year fix. But four or five years ago, a two-year fixed deal was always the cheapest. A two-year deal moved from the cheapest to the most expensive. At the moment in March 2026, they’re all very similarly priced. A two-year, three-year or five-year deal are all similar, so the decision is less straightforward. You just need to focus on how long you want to be tied in with that lender.Is it always better to fix my mortgage for longer?
It’s a very tough one. If I’m arranging a remortgage for a client today and they’ve been on a five-year fixed deal, they will have been on a rate of between 1.2% and 2%. Today’s interest rates of 4% will look expensive compared to what they’ve been paying. Hindsight tells you that it was the right decision to fix for five years – they’ve had a super low interest rate, especially when rates were almost 5% a couple of years ago. You can only make a decision at the time. And unfortunately, only hindsight will tell you whether you did right or wrong. What I do is chat to that client to understand their circumstances. Are they planning to stay in their property or sell it within the next couple of years? Those are the factors to base the decision on.Speak To An Expert
Our team of experts are experienced in catering for a range of clients, needs and property types. With a vast array of qualifications and accreditation from the financial accreditation agency you can be confident of quality service and sound advice.
What happens when my fixed-rate mortgage ends?
Ordinarily, six months before that deal comes to an end, I will invite a client to look at the options. At that stage we want to avoid the standard variable rate – because that’s traditionally the most expensive rate a lender offers.
We would look at the options to stay with that existing lender, compared with remortgaging with a different bank. We would weigh up the pros and cons to find out what’s best.
Where can I get advice on fixed-rate mortgages?
This is where a mortgage advisor comes into their own. If you walk into your own bank they can only give you advice on their products, whereas a mortgage broker can look at all the different banks and building societies – and they differ considerably.
A good broker will talk to you about the different rates and whether it’s better to look at two, three, five or 10 year deals. Another thing to throw in there is the fee. You might be looking at a fixed-rate mortgage for five years – some lenders charge nothing. Others will charge £495, £995, or even £1,495.
If you’ve got a smaller mortgage of £100,000 or so, a £1,500 fee won’t make financial sense. You’d never save that £1,500 back by paying that fee for a cheaper interest rate. That’s something else a good broker will chat through with you.
What happens if I fix my mortgage before interest rates fall? Is it better to wait for interest rates to drop before remortgaging?
You can never know. Today, two high street lenders have increased their interest rates because of world events. I’ve got four clients at the moment who have been hanging on because lenders previously suggested that rates could come down.
My advice to every single client is to secure a rate as soon as possible. Then, if interest rates increase, you’re unaffected. If rates were dropping today, and the lender I’d arranged your mortgage with is now offering a cheaper rate, I would ask if you want to be moved onto that – and I’m sure you would.
A good mortgage broker will follow the interest rates and monitor your mortgage right through to completion. So if you secure something early, you don’t need to worry about interest rates going up. And if they come down, you’ll still benefit.
Can I get a mortgage with a longer or full fixed-term rate?
Very few people would go for a fixed rate as long as 10 years. That’s such a long time. Plus, it’s more expensive for a 10-year fix at the moment.
Think of your circumstances 10 years ago. In most cases, things have changed significantly – whether that be jobs, family or relationships. It’s a long time. You’ve got to be very secure with your house and relationship. If you decide to come away from that deal there will be early repayment charges.
I’ve only had one client – and actually a close friend of mine – who wanted a 10-year fix. At the time, only one lender would do it and that lender didn’t take business from brokers. I told my friend to go direct but he didn’t want to.
He ended up coming back to me and arranging a five-year deal. So, in all the time I’ve done the job, I’ve never done a 10-year fixed rate.
You’ve demonstrated it throughout the episode, but how can a mortgage broker help me decide how long to fix my mortgage?
We guide you through what’s available and what’s best for your circumstances. Then we keep in touch with you if rates come down. The reason to use a mortgage broker is to ensure that when you complete that purchase or remortgage, you’re on the cheapest possible deal for you.
Key Takeaways:
- The decision on how long to fix your mortgage should be based on your personal circumstances and future plans, such as whether you intend to move house, rather than trying to guess the direction of volatile interest rates.
- The primary advantage of a fixed-rate mortgage is the stability of knowing exactly what your monthly payments will be, which is particularly beneficial for first-time buyers.
- Fixed-rate deals are inflexible if you decide to move house, potentially leading to early repayment charges or forcing you to port your mortgage to a new property.
- Shorter fixed terms, like a two or three-year fix, are advisable if you plan to buy, do work on the property, and sell it within a couple of years.
- A good mortgage broker can offer advice on products from many different banks and building societies, guide you through rates and fees, and monitor rates right up to completion.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
Useful Links
Why MortgageCo?
- Raising The standards of financial advice
- Making financial advice accessible to all
- Trusted & stress-free financial advice
- Friendly, personable advisors
