Should I Fix for 2 or 5 Years?
The right answer depends on the gap between today's rates and what you think rates will be when you remortgage. Use the calculator below to compare both paths, see the break-even point, and decide with confidence.
This is the rate you'd take on a fresh fix when your 2-year deal ends. Your own view of the rate outlook; 3.5–4.5% is a common 2026 range.
If you do nothing when your 2-year fix ends, your mortgage reverts to this rate — almost always much higher than available fixes. Typical UK SVR is 7.5–9.0% in 2026. Check your lender's KFI or website.
The gap between the cheapest and the most expensive path is £20,482 on your £250,000 loan over 5 years.
If you take the 2-year fix and don't remortgage when it ends — rolling onto your lender's SVR at 8.0% — you'd pay £20,482 more than if you remortgaged to 4.0% promptly. Start a new deal 3–6 months before your fix ends to avoid this.
If you remortgage in 2 years at exactly 4.66%, the 2-year-plus-remortgage path and the 5-year fix cost the same. Below that rate, 2-year wins. Above it, 5-year wins.
How the Comparison Works
We're comparing total mortgage cost over a 5-year window — the longest fix period — because that's when both paths complete and can be compared fairly.
- 2-year fix + remortgage: 24 months at the 2-year rate, then 36 months at the new fix you'd take when the deal ends. Assumes you take action.
- 2-year fix + do nothing (SVR): 24 months at the 2-year rate, then 36 months on your lender's Standard Variable Rate. This is what actually happens if you don't remortgage — typically 7.5–9% in 2026 and nearly always the most expensive path.
- 5-year fix: 60 months at the 5-year rate — locked in for the full window, no remortgage risk.
- The break-even rate is the remortgage rate at which the 2-year-plus-remortgage path and the 5-year fix cost the same. Below it, 2-year wins (if you remortgage). Above it, 5-year wins.
When a 2-Year Fix Wins
- You expect Bank of England base rate to fall meaningfully (0.5%+) in the next 2 years
- You're moving house within 2 years and want maximum flexibility
- You plan to overpay aggressively and want the freedom to restructure
- You're on a tight budget now and every pound of monthly payment matters
When a 5-Year Fix Wins
- You want payment certainty — no nasty surprises if rates rise
- You're buying a home you plan to stay in 5+ years
- The 5-year rate is within 0.3% of the 2-year rate (historically uncommon)
- You need the larger borrowing figure — lenders stress 5-year fixes more gently
- You worry you'll forget to remortgage and risk rolling onto your lender's SVR
The Hidden Advantage: 5-Year Fixes Boost Your Borrowing
Most UK lenders stress-test 2-year fixes at roughly 2% above the product rate, but 5-year fixes at the product rate itself. That difference typically adds £20,000–£40,000 to your maximum mortgage — a separate advantage from the total-cost comparison above.
If your maximum borrowing on a 2-year fix isn't reaching the property price you need, switching to a 5-year fix often closes the gap without changing your income.
