When it comes to buying a home or remortgaging, one of the biggest financial decisions you’ll face is choosing the right mortgage deal. Many people across the UK are now asking the same question: how to find the best 5 year fixed rate mortgages? With interest rates moving up and down and the cost of living continuing to bite, more homeowners are turning towards fixed rate deals for peace of mind. A five-year fix, in particular, offers stability and certainty over your monthly repayments. But how exactly do you find the best option available? Let’s break it down in simple terms.
Why Choose a 5 Year Fixed Rate Mortgage?
Before we get into the “how”, it’s worth asking why a five-year fixed deal might suit you.
- Certainty in payments – your monthly repayments stay the same for five years, no matter what happens to the Bank of England base rate.
- Budgeting made easier – households can plan ahead without the fear of sudden increases.
- Protection in uncertain times – if you believe rates may rise further, fixing now could protect you from higher costs down the line.
However, there are trade-offs. If rates fall, you may end up paying more than those on tracker or variable deals. Plus, many fixed mortgages come with early repayment charges, making it harder to switch if you want to move or remortgage before the term ends.
Step 1: Work Out What You Can Afford
The first step in finding the best 5 year fixed rate mortgages is not just to look at the headline interest rate. Work out what you can comfortably afford each month. Remember, your repayments are not the only costs of owning a home. Think about council tax, utilities, insurance and general living expenses. A mortgage that stretches you too thin isn’t the “best” deal, no matter how attractive the rate looks.
Step 2: Compare Mortgage Lenders
The UK market is highly competitive, with high street banks, building societies and newer digital lenders all offering fixed deals. Don’t simply go to your own bank and accept the first offer. Instead, compare across the market.
Look at:
- Interest rates – the lower, the better, but only when combined with other factors.
- Arrangement fees – sometimes a low interest rate comes with high upfront fees. Over five years, this could cancel out the benefit.
- Incentives – free valuations, cashback or help with legal fees can sweeten the deal.
A good comparison site or mortgage broker will let you see the bigger picture and avoid being blinded by rates alone.
Step 3: Use a Mortgage Broker
Many homeowners find that using a broker is the fastest way to discover how to find the best 5 year fixed rate mortgages. Brokers have access to deals that aren’t always available directly to the public. They can also advise on which lenders are more flexible with criteria, such as self-employed income or smaller deposits.
In the UK, most brokers are regulated by the Financial Conduct Authority (FCA), so you’re protected. Just be aware that some brokers charge fees, while others are paid commission by lenders. Always check up front.
Step 4: Think About Loan-to-Value (LTV)
One factor that strongly affects the rate you’ll be offered is your loan-to-value ratio – in simple terms, the size of your deposit or equity compared with the value of the property.
- With a 60% LTV (meaning you own 40% of the property), you’re likely to get the very best deals.
- At 80% or 90% LTV, rates usually climb higher.
If you can save a bigger deposit or have built more equity, you’ll have access to more competitive five-year fixed options.
Step 5: Check the Small Print
Once you’ve shortlisted a few options, take time to read the terms carefully. Watch out for:
- Early repayment charges – typically a percentage of your loan if you pay off early.
- Portability – if you plan to move house during the five-year term, can you take your mortgage with you?
- Overpayments – some lenders allow you to overpay up to 10% each year without penalties. This flexibility can save you thousands over the life of the mortgage.
Step 6: Keep an Eye on the Market
Rates change regularly. What’s the “best” 5 year fixed rate mortgage this month may be beaten by another deal next month. If you’re remortgaging, start looking around six months before your current deal ends. This gives you time to secure a rate without falling onto your lender’s standard variable rate, which is usually much higher.
What “Best” Looks Like Right Now (UK) — Summary
Putting all this together, as of now, “best” 5-year fixed mortgage rates for people with decent deposit/equity and meeting lender criteria are around:
- ~ 3.85%-4.00%, for LTV around 60% or better, with moderate product fees.
- ~ 4.00-4.25%, if your LTV is a bit higher (say 70-80%) or other qualifying criteria are less strong.
- Very few lenders are offering much below ~3.80% unless deposit is generous or it’s a special deal (e.g. remortgage, new build, etc.).
If you see something much higher than 4.5% for a 5-year fixed in your LTV range, chances are it’s not competitive (unless there’s a specific reason or you have high risk in lender’s view).
What Factors Make These “Best” Deals
Looking at the above, here’s what tends to distinguish the better 5-year fixed rate mortgages:
- Low fixed rate with modest fees: A deal with a 3.8-4.0% fixed rate is very good if fees aren’t very large. If the fees are huge, they can eat into your savings.
- Lower LTV (larger deposit / equity): The rates drop as your deposit or equity increases. If you can put down 40-50% or more, you’ll often access the very best rates.
- Reasonable product fees or optional fee-saver versions: Some products waive or reduce fees in exchange for slightly higher rates. If you have cash available, you can choose based on what suits you.
- Additional incentives: Cashback, free valuations, help with legal costs etc. These extra perks can tilt the balance.
- Flexibility: Overpayment allowance, portability, early repayment charges etc. Even a great rate might not be “best” if you’re restricted and expect to move or overpay.
FAQs
UK? Rates change regularly, but as of late 2025 most five-year fixed mortgages in the UK sit between 3.8% and 4.5%, depending on your deposit size and credit profile. The very lowest rates are usually available to borrowers with at least 40% equity.
A 5-year fixed mortgage offers longer security against rate rises, whereas a 2-year deal gives you flexibility to switch sooner. Which is “better” depends on whether you prefer stability or the chance to remortgage more quickly if rates fall.
Yes — many lenders offer five-year fixed deals for first-time buyers. However, the rate will depend on your deposit. With a smaller deposit (say 5–10%), the interest rate will usually be higher than for someone with a larger deposit.
When the fixed period finishes, you normally move onto your lender’s standard variable rate (SVR), which is often much higher. Most homeowners remortgage to a new deal before the end of the five-year term to avoid paying the SVR.
Yes, but you’ll usually face an early repayment charge (ERC) if you switch before the fixed term ends. The cost can be thousands of pounds, so it’s worth checking the details of your contract before making a move.
Most lenders in the UK allow you to overpay up to 10% of your outstanding balance each year without penalty. Overpaying regularly can reduce your total interest bill and help you pay off your loan sooner.
Yes, some lenders offer fee-free five-year deals, often branded as “Fee Saver” mortgages. The trade-off is usually a slightly higher interest rate. Whether it works out cheaper depends on your loan size and how long you keep the mortgage.
Brokers often have access to exclusive rates not shown on public comparison sites. They can also match you to lenders who are more flexible with income, deposit, or credit score requirements — saving you both time and money.
Most high street banks and building societies do, but the terms vary widely. Some digital lenders also compete strongly in this space, sometimes with lower fees or faster application processes.
That depends on your personal circumstances and view of the market. If you value stability and expect rates to rise, locking in now could be wise. If you believe rates might fall, you may prefer a shorter fix — but you’ll have less certainty.
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