Best fixed-rate mortgage deals in the UK

4 min Read Published: 23 Dec 2022

Best fixed-rate mortgage deals in the UKWhether you are purchasing a new home or remortgaging your existing mortgage, sourcing the best mortgage deal can be confusing. In this article, we explain how a fixed-rate mortgage works and compare the best fixed-rate mortgage deals for 2, 5 and 10 years. We also share how to find the best mortgage deal for your particular circumstances.

What is a fixed-rate mortgage?

A fixed-rate mortgage is one where the interest rate is agreed upon at the outset and is fixed for a pre-agreed duration of time. Fixing your mortgage interest rate can be attractive if you prefer the stability and predictability offered by a fixed monthly mortgage payment. As with any financial decision, there are pros and cons to fixing the mortgage interest rate that you pay. If interest rates increase over and above your fixed rate, you won't be impacted because the interest rate that you pay will be fixed until the deal period ends. However, if interest rates fall, borrowers will benefit as they are tied into a fixed-rate mortgage deal and may incur charges if they wish to exit before the deal period ends. You can read more in our article, "What is a fixed-rate mortgage? Everything you need to know"

If you are unsure whether a fixed-rate mortgage deal is right for you, consider speaking with an independent mortgage broker who can guide you to the best options for your personal circumstances. We have vetted the services of online mortgage broker, Habito* where the advisers have access to over 90 lenders. It can provide bespoke mortgage advice at no cost to the borrower.

How many years can you fix your mortgage interest rate?

The period that the mortgage interest rate can be fixed for varies but is usually 2, 3 or 5 years. A few lenders will provide fixed rates for an extended period of between 10 and 40 years, but these are uncommon in the present mortgage market. You can read more about these in our article, "Which are the best long-term fixed rate mortgages – and should you get one?"

Best fixed-rate mortgage rates

2 years is usually the minimum number of years that you can fix your mortgage interest. Borrowers' personal situations, future plans and perception of how interest rates will change over the coming years can determine how long they should fix the interest rate on a mortgage.

We have searched the market and provided the best fixed-rate mortgage deals over 2 years, 5 years and 10 years. The mortgage interest rate assumes a new home purchase valued at £350,000 with the mortgage taken over 25 years on a repayment basis.

We have also chosen the best interest rates available at 80%, 85% and 90% loan to value (LTV). These do not consider product fees and other associated costs that may affect the overall cost of the mortgage. As rates change regularly, you should also check current rates using our Mortgage Rate Comparison Tool.

Best 2-year fixed rate mortgage deals for 80% LTV

Lender Interest rate* Rate after 2 years
HSBC 4.99% 6.29%
Gen H 4.99% 7.00%
Bank of Ireland 5.05% 6.59%
Coventry Building Society 5.05% 5.84%
Skipton Building Society 5.07% 5.89%

*rates based on a £350,000 purchase mortgage taken over 25 years

Best 2-year fixed rate mortgage deals for 85% LTV

Lender Interest rate* Rate after 2 years
HSBC 5.04% 6.29%
Bank of Ireland 5.05% 6.59%
Coventry Building Society 5.05% 5.84%
Halifax 5.15% 6.99%
Gen H 5.15% 7.00%

*rates based on a £350,000 purchase mortgage taken over 25 years

Best 2-year fixed rate mortgage deals for 90% LTV

Lender Interest rate* Rate after 2 years
Gen H 5.30% 7.00.%
HSBC 5.34% 6.29%
Halifax 5.40% 6.99%
Skipton Building Society 5.44% 5.89%
Digital Mortgages by Atom Bank 5.49% 6.40%

*rates based on a £350,000 purchase mortgage taken over 25 years

Best 5-year fixed rate mortgage deals for 80% LTV

Lender Interest rate* Rate after 5 years
HSBC 4.61% 6.29%
Halifax 4.70% 6.99%
Skipton Building Society 4.79% 5.89%
Virgin Money 4.83% 6.99%
Principality Building Society 4.85% 5.65%

*rates based on a £350,000 purchase mortgage taken over 25 years

Best 5-year fixed rate mortgage deals for 85% LTV

Lender Interest rate* Rate after 5 years
HSBC 4.66% 6.29%
Halifax 4.75% 6.99%
Virgin Money 4.83% 6.99%
Bank of Ireland 4.92% 6.59%
Coventry Building Society 4.93% 5.84%

*rates based on a £350,000 purchase mortgage taken over 25 years

Best 5-year fixed rate mortgage deals for 90% LTV

Lender Interest rate* Rate after 5 years
HSBC 4.81% 6.29%
Halifax 4.85% 6.99%
Leeds Building Society 5.09% 6.49%
Skipton Building Society 5.12% 5.89%
Digital Mortgages by Atom Bank 5.14% 6.40%

*rates based on a £350,000 purchase mortgage taken over 25 years

Best 10-year fixed rate mortgage deals for 80% LTV

Lender Interest rate* Rate after 5 years
Nationwide 5.09% 6.49%
First Direct 5.09% 6.29%
Barclays 5.56% 6.99%
Platform part of The co-operative bank 5.65% 5.87%
Newcastle Building Society 5.75% 4.91%

*rates based on a £350,000 purchase mortgage taken over 25 years

Best 10-year fixed rate mortgage deals for 85% LTV

Lender Interest rate* Rate after 5 years
Nationwide 5.09% 6.49%
Yorkshire Building Society 5.88% 6.49%
Newcastle Building Society 6.25% 4.91%
Kensington 8.64% 7.25%

*rates based on a £350,000 purchase mortgage taken over 25 years

Best 10-year fixed rate mortgage deals for 90% LTV

Lender Interest rate* Rate after 5 years
Nationwide 5.49% 6.49%
Yorkshire Building Society 6.08% 6.49%
Newcastle Building Society 6.25% 4.91%
Kensington 8.64% 7.25%

*rates based on a £350,000 purchase mortgage taken over 25 years

How to choose the best fixed-rate mortgage deal

There are a number of factors to consider before you decide which type of mortgage deal suits you best. Mortgage lenders use a variety of different lending criteria and some will offer better deals based on your personal circumstances. For example, a mortgage lender may provide special rates for newly qualified professionals such as doctors, dentists, lawyers or accountants. Other lenders offer excellent rates for first-time buyers while a number of lenders offer more lenient qualifying criteria for those with adverse credit.

Lending criteria can limit how much you can borrow based on your income (income multiples) and the maximum loan amounts available to borrow. It can also limit the loan-to-value ratio affecting how much deposit you are required to pay towards your home purchase. Both high street lenders and specialist lenders review rates regularly and it can be difficult to know which deal to commit to without having an in-depth knowledge of the mortgage market. For this reason, the best way to choose the right and best fixed-rate mortgage deal is by using a mortgage broker. You can find a local mortgage broker through VouchedFor* or perhaps someone you know can recommend a mortgage broker they had a good experience with. Alternatively, simply get in touch with the online independent mortgage broker, Habito* for independent mortgage advice at no extra cost.

 

If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following links can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Habito, VouchedFor