5 Year Fixed Rate Mortgages

Buying a house is one of the most exciting life milestones for people to reach. However, there is a lot of organising when looking to buy a house, and it can become overwhelming. Too many people struggle to find the right kind of mortgage for their circumstances and risk being unable to buy their dream home.

If you want to find the best 5 year fixed rate mortgage for your needs, you can use our simple quote comparison tool. Comparing mortgage quotes will help you consider different options and find one that suits you.

What is a fixed rate mortgage?

A fixed rate mortgage is a kind of mortgage where the interest rate does not change over time. This fixed interest rate is usually set for a certain amount of time. With a 5 year fixed rate mortgage, interest is fixed for 5 years.

What’s a variable rate mortgage?

A variable rate mortgage is where the interest rate changes in line with the national base interest rate. In other words, it is the direct opposite of a fixed rate mortgage. This means that the interest rate could be higher or lower than a fixed rate mortgage.

What happens after a 5 year fixed rate mortgage?

After the 5 year term of your mortgage, if you still have to pay off some of the original loan, your mortgage will usually get changed to a variable interest rate. You could find that this is a worse interest rate for you.

Is a 5 year fixed rate mortgage a secured loan?

Any mortgage is a type of secured loan. A secured loan is where the loan is backed or secured by an asset, such as a house, car, or another valuable object. This means that if you stop paying your mortgage payments, the asset is sold to cover the costs – this means you could lose your house if you do not pay.

What is the longest fixed rate mortgage in the UK?

The longest fixed rate mortgage that mortgage lenders offer will be different from different companies. Fixed rate mortgages often go up to 10 or even 30 years.

Is a 5 year fixed rate mortgage a good idea?

A 5 year fixed rate mortgage might be right for you if you think you can pay off your mortgage in the 5 year timespan. If you can pay it off sooner, you may be able to find a shorter mortgage with lower interest. If you need longer, you may find a longer fixed term mortgage more beneficial.

What deposit do I need for a 5 year fixed rate mortgage?

You will usually need the same deposit size for most mortgage types. This is usually at least 5% of the total cost of the property, but it may differ based on your salary or the house you are buying.