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Two-year fix or five-year fix?

What you'll usually hear

The usual rule of thumb: a two-year fix is cheaper and more flexible, a five-year fix costs more but buys certainty.

The bit that often gets missed

Right now the five-year averages less than the two. That's unusual, and it changes the maths people learned in 2023.

In September 2026, that rule didn't hold on price. The Bank of England's average two-year fix at 75% loan to value was 5.13%, and the average five-year fix was 4.98%. So on average, the longer fix was the cheaper one.

The length of the fix can also change how much you're offered. If a rate is fixed for five years or more, the affordability rules don't require lenders to test you against five years of possible rate rises. Some lenders therefore assess a five-year fix closer to its actual rate, which can mean a higher maximum loan.

Price isn't the only difference. A longer fix means you know your payment for longer, but you're also tied in for longer. Leaving early usually means an early repayment charge, which can be large in the first years.

A shorter fix means you'll remortgage sooner. That could be at a better rate or a worse one, and it may come with fees each time.

Averages also hide a lot. The rate you're offered depends on your deposit, the lender and the fees attached. A lower rate with a big arrangement fee can cost more overall than a higher rate with no fee.

Where this information comes from

General information, not advice about your circumstances. Rules and rates change; this page was last checked 28 October 2026. Spotted an error? Tell us.

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