If you’re buying your first home or thinking about remortgaging, one of the key decisions you’ll need to make is how long to fix your mortgage for.
Fixing your rate means your monthly payments stay the same for a set period of time, giving you protection against interest rate changes and helping you plan with more certainty.
There’s no one-size-fits-all answer. Some people want the flexibility of a shorter deal, while others prefer the stability of locking in for longer.
What fixed rate mortgage terms can you choose?
Fixed rate mortgage deals usually last for two, three or five years. In some cases lenders will even offer products that extend up to seven or ten years. During that time, your interest rate and monthly payments stay the same, no matter what happens with the Bank of England base rate or wider market conditions.
Shorter terms can give you more flexibility, while longer terms offer more stability. The right choice often comes down to your personal plans, how long you expect to stay in the property, and how important it is for you to keep your payments steady.
Let’s take a look at how each fixed period works, and why one might suit you more than another.
Two Year Fixed Rate Mortgages
A two-year fixed rate is one of the most common options for first time buyers and people remortgaging. It gives you a guaranteed rate for a short period, which can be helpful if you’re planning to move again soon or want to keep your future options open.
Because the fixed period is shorter, rates are often lower compared to longer deals. That said, you’ll need to review your mortgage sooner, and if rates have gone up by the time your deal ends, your new payments could be higher.
A two-year deal might work well if you’re expecting changes in your circumstances, such as a new job, a house move, or a possible income increase.
Three Year Fixed Rate Mortgages
Three-year fixed rates are less common than two- or five-year deals but can be a good middle ground if you’re looking for a bit more security without committing for too long.
With a three-year fix, your monthly payments will stay the same for the full term, which can offer peace of mind if you’re unsure how interest rates might change in the short to medium term. It gives you more breathing space than a two-year deal, but with more flexibility than a five-year fix.
Some buyers choose a three-year option if they expect to move or remortgage again soon but still want more payment stability than a shorter deal would offer.
Five Year Fixed Rate Mortgages
A five-year fixed rate is one of the most popular choices for both first time buyers and those remortgaging in Derby. It offers longer-term security, with the reassurance that your monthly payments won’t change for the next five years, regardless of what happens with interest rates.
This type of deal can be especially useful if you’re planning to stay in your home for a while or want to avoid the hassle and cost of remortgaging every couple of years. It can also help you budget more confidently over a longer period, especially in a rising rate environment.
Keep in mind that if you need to make changes or move home during the fixed term, early repayment charges may apply. Your mortgage advisor in Derby will talk you through how this works and whether a five-year fix suits your situation.
Seven & Ten Year Fixed Rate Mortgages
Some lenders offer longer fixed rate options that last seven or even ten years. These deals are less common but can appeal if you’re looking for long-term stability and don’t expect to move or remortgage for a while.
Locking in your rate for this length of time means you won’t need to worry about rising interest rates or changing deals anytime soon. It can give you peace of mind and help you plan well into the future.
On the other hand, these mortgages can come with higher early repayment charges if your plans change. That’s why they tend to suit buyers who are settled and confident they’ll stay in their home for the full term.
Which fixed term should I choose?
The right fixed rate term depends on your personal plans, how long you expect to stay in your home, and how important it is to keep your payments steady. Some buyers prefer the flexibility of a shorter deal, while others feel more comfortable locking in for longer to avoid future rate changes.
As a mortgage broker in Derby, we’ll take time to understand your situation and talk you through the pros and cons of each option. Whether you’re a first time buyer in Derby or remortgaging, your mortgage advisor will help you find a deal that fits around your life, not just your finances.
Date Last Edited: June 30, 2025
