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; best-buy fixes have sat around 4.3–4.6% through 2026.
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 £13,686 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 7.1% — you'd pay £13,686 more than if you remortgaged to 4.4% 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 6.3–8.4% 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.
Frequently asked questions
Should I fix my mortgage for 2 or 5 years in 2026?
The answer depends on two things: the gap between current 2-year and 5-year fix rates, and your view on where rates will be in 2 years. If you think rates will fall by more than roughly 0.5–1% over the next 2 years, a 2-year fix typically wins. If you think rates will stay flat or rise, a 5-year fix usually wins. The break-even remortgage rate is usually a little below today's 5-year fix rate — the calculator below works it out for your exact loan.
What's the break-even rate between a 2-year and 5-year fix?
The break-even rate is the remortgage rate at which both paths cost the same over 5 years. It depends on your loan size, term, and the gap between current 2yr and 5yr rates. On a typical 25-year mortgage with the 5-year rate priced 0.2% above the 2-year, the break-even point is usually 0.3–0.5% below today's 5-year fix rate.
Do lenders stress-test 5-year fixes differently?
Yes. Most UK lenders stress 2-year fixes at roughly 2% above the product rate, but 5-year fixes are stressed at the product rate itself (or a much smaller margin). This means a 5-year fix often gives you £20,000–£40,000 more maximum borrowing than a 2-year fix on the same income — a separate advantage from the total-cost comparison.
What are the early repayment charges on a 5-year fix?
Typical 5-year fix ERCs in the UK step down annually: 5% in year 1, 4% in year 2, 3% year 3, 2% year 4, 1% year 5 (the 54321 pattern). On a £250,000 mortgage, exiting in year 2 would cost £10,000 in ERC. This is the main downside of a longer fix — make sure you're likely to stay put for the full 5 years, or use a lender with portable fixes if moving house.
Is a tracker mortgage better than either fix?
A tracker (variable rate linked to the Bank of England base rate) is cheaper when rates are falling and more expensive when they're rising. It's a bet against both fixes. Most borrowers opt for the certainty of a fix — a tracker suits borrowers with financial headroom to absorb rate rises and a strong view that rates will fall.
What happens if I do nothing when my 2-year fix ends?
Your mortgage reverts to your lender's Standard Variable Rate (SVR) — typically 6.3-8.4% in 2026, averaging around 7.1%. That's almost always significantly higher than any available fix or tracker. On a £250,000 mortgage, rolling onto a 7.5% SVR rather than remortgaging to a 4.5% fix can cost an extra £5,000-£9,000 over 3 years. Always line up a new deal 3-6 months before your fix ends.
Why is my Standard Variable Rate so high?
SVRs are set individually by each lender and aren't a tracker — they move roughly with the Bank of England base rate but with a margin of roughly 2.5-4.5% on top. Lenders keep SVRs high partly to encourage customers to remortgage (since the margin on SVR is usually higher than on fixes), and partly to have pricing power when base rate changes. Your lender's exact SVR is on their website or in your mortgage offer KFI.
