Sometimes rates on five-year fixed-rate mortgages are higher, other times two-year rates will be higher. However, it’s important to think about your personal situation and future plans too.
Fixing for five years will give you a longer period of repayment certainty if you think mortgage rates are likely to rise. There’ll also be more time before you need to think about remortgaging.
Fixing for two years may be an option if longer term reassurance over your monthly repayments is less important, or you think mortgage rates will decrease. With a two-year fix you could remortgage sooner without an early repayment charge, and potentially move to a lower mortgage rate, if available. A shorter fix may also allow you to avoid early repayment charges if you’re thinking of moving soon.