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Correct at 08/03/2022

Apply for a 5 Year Fixed Rate Mortgage with L&C

If you’re looking for the security of a 5 year fixed rate mortgage, L&C can provide all the support and advice you need to find you the best deal.

You can compare the best 5 year deals on the market online and our Mortgage Finder will show you which deals you’re eligible for.

Once you’ve spoken to one of our mortgage experts and we’ve recommended the best 5 year fixed rate mortgage deal for your needs, you can apply either online or by phone, and we’ll be on hand to help you through the mortgage process from start to finish.

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5 Year Fixed Rate Mortgages Explained

What does “5 year fixed mortgage” mean? It is just as it sounds: a type of mortgage where the interest rate and the monthly repayments are fixed for five years. This means that even if interest rates fluctuate, your rate won’t and neither will your monthly mortgage payments.

A five year fixed rate mortgage could be a good choice for you if you like the certainty of knowing how much you’ll have to repay every month for the next five years. It can help you with planning and budgeting, and many people like the peace of mind that a 5 year fixed rate mortgage can provide, as it means their payments are guaranteed to stay the same for the term of the initial deal. For this reason, five year fixed rate mortgages are often popular with first time buyers.

In return for the peace of mind that your repayments will stay the same for the next five years, this type of mortgage tends to be more expensive than a variable rate mortgage, and more expensive than shorter-term fixed rate deals. The longer the fixed rate mortgage term you choose, the more expensive your mortgage payments are likely to be. This means 5 year fixed mortgage rates in the UK are typically cheaper than 10 year fixed rate mortgages, but will usually cost more than 2 year fixed rates.

5 Year Fixed Rate Mortgage Process

If you want to be certain that your mortgage payments won’t change if interest rates rise in the next few years, a 5 year fixed rate mortgage could be worth considering. Remember that it works the other way too, and if interest rates drop, you won’t benefit from this - meaning you could miss out on a lower rate of interest if they drop during your five year term. But if you’re happy with the monthly payment amount and like the idea of having this set in stone, then it could be a good option for you.

Bear in mind that most lenders will impose an Early Repayment Charge (ERC) if you leave a fixed rate deal early, so consider whether your circumstances might change in the next five years. Most deals can be taken with you if you move home, although you’ll have to meet your lender’s eligibility criteria at the time of your move, so it’s not guaranteed.

If you’re sure you want to go ahead with a 5 year fixed rate mortgage, get started with our mortgage finder to see which deals you’re eligible for. Our mortgage experts will then compare them for you to make sure you get the lowest 5 year fixed rate mortgage.

5 Year Fixed Rate Mortgage Eligibility Criteria

The eligibility criteria for 5 year fixed rate mortgages, just as with any other mortgage type, vary between lenders. They will be looking to see that you can afford repayments not just when you get your mortgage, but also for the next five years - so as well as proof of income, they’ll be looking at your spending habits and may want to know if you expect your circumstances to change.

You should have the following prepared before starting the process of applying for a mortgage. The more information you have, the more likely you are to get the best 5 year fixed mortgage rates:

  • 3-6 months of payslips
  • 6 months of bank statements
  • Proof of any benefits received
  • P60 from your employer
  • Utility bills
  • Tax returns or accounts if you’re self employed

Finding the Best 5 Year Fixed Rate Mortgage Deal

L&C can help to find the lowest 5 year fixed rate mortgage for you, whether you’re looking for a repayment deal or a 5 year fixed rate interest only mortgage.

We have access to over 90 lenders and our expert mortgage advisers will work to find the best deal for your personal circumstances. To get started, check out our mortgage best buys to see the best deals currently available and talk to us or start filling in your information online to see if you’re eligible.

To ensure you have the best possible chance of getting a good rate, make sure that you check your credit report before starting the mortgage application process. The three main credit reference agencies are Equifax, Experian and TransUnion, all of which offer free and subscription services. Once you’ve reviewed your report, make sure there’s no incorrect information as discrepancies can adversely affect your mortgage application.

5 Year Fixed Rate Mortgage Repayments

The biggest benefit of 5 year fixed rate mortgages is that you know exactly how much you’ll have to repay every month for the next five years, so you can budget with certainty during that time.

When the five years end, you’ll usually be moved onto your lender’s standard variable rate (SVR), which is often higher than your fixed rate, meaning that your monthly repayments may increase at this point. You can either remortgage or look for another deal with the same lender once your fixed term is over.

If you wish to change your mortgage during the five year fixed term, or have to pull out for any other reason, you’ll likely be liable for an Early Repayment Charge (ERC), which is often a significant amount of money.

Apply for a 5 Year Fixed Rate Mortgage with L&C

If you’re looking for the security of a 5 year fixed rate deal, L&C can provide all the support and advice you need to find the best mortgage to suit your circumstances.

With L&C, we support you to find the best 5 year fixed rate mortgage - fee-free. We don’t charge you for our services, so you can rest assured that we always offer expert advice.

To get started, compare the best deals on the market online or use our mortgage finder to see which deals you’re eligible for. Once you’ve spoken to one of our mortgage experts, you can apply online or by phone and we’ll be on hand to help you through the process from start to finish.

5 year fixed rate mortgage FAQs

Should I get a 5 year fixed rate mortgage?

If you want to be certain that your mortgage payments won’t change if interest rates rise in the next few years, a 5 year fixed rate mortgage could be worth considering. Find out more in our guide ’What is a fixed rate mortgage and how do they work?’

Are 5 year fixed rate mortgages a good idea?

Many people like the peace of mind that a 5 year fixed rate mortgage can provide, as it means their payments are guaranteed to stay the same for the term of the initial deal. Remember though that there will typically be an Early Repayment Charge (ERC) to pay if you leave your mortgage deal during the fixed rate period.

What’s a good 5 year fixed mortgage rate?

At L&C, we can help you find the best 5 year fixed mortgage as we compare hundreds of different deals from a wide range of lenders. Check out our mortgage best buys to see the best deals currently available and talk to us or start filling in your information online to see if you’re eligible.

Are 5 year fixed rate mortgages cheaper?

The longer the fixed rate mortgage term you choose, the more expensive your mortgage payments are likely to be. This means 5 year fixed rate mortgages are typically cheaper than mortgages fixed for 10 years, but will usually cost more than 2 year fixed rates. However, the longer the fixed rate period, the longer you will have certainty over your mortgage payments.

Which is best, a 2 year or 5 year fixed rate mortgage?

Generally, the longer the fixed rate, the higher your monthly payments are likely to be. So 5 year fixed rate mortgages are typically cheaper than mortgages fixed for 10 years, but will usually cost more than 2 year fixed rates. If you want the freedom to switch to another mortgage deal after a relatively short period without Early Repayment Charges, then a 2 year fixed rate mortgage might work best for you. On the other hand, a 5 year fixed rate mortgage gives you peace of mind that your payments won’t change for half a decade. When you give L&C a call, we’ll search the market to find the best fixed mortgage deal for your circumstances.

What is the average 5 year fixed mortgage rate?

The interest rate you are charged depends on the particular mortgage deal you apply for, which itself is determined a number of factors including your lender, credit history, loan term and how much equity or deposit you have. There are thousands of mortgage deals currently on the market and these deals change often, so the average rate will move around from day to day. However, you can use our online Mortgage Finder tool to see the interest rates on current deals you might be eligible for.

You might also be interested in:

What is a fixed rate mortgage?
Types of mortgage explained
How much deposit do I need to buy a house?