Househunting Britons have lots to celebrate with the best 5-year fixed-rate mortgage deals coming in below the Bank of England’s base rate. 

This means that some homebuyers will be able to fix their monthly home loan costs at under 4%.¹

5-year fixed mortgage rates are very popular at the moment, and banks and building societies are competing to slash their prices and win over customers. 

With all that is on offer at the moment, you might feel a bit overwhelmed, but we’re here to simplify it for you.  

Hold tight as we navigate through the maze of the best 5-year fixed-rate mortgages on offer in the UK. 

Interest Rates on 5-Year Fixed Mortgages

Interest rates on 5-year fixed mortgage rates are currently ranging between 5% and 7%. 

This is slightly above the Bank of England’s base rate of 4% and might be a good idea for buyers who want a bit more security.²  

Because you might end up paying more.

Here’s why…

The rate on your mortgage is determined by a number of things, for example the size of your deposit as well as your financial circumstances. 

So, if the Bank of England decides to hike its base rate again, your interest rate will go up, unless you fix the rate for 5 years. 

*While we regularly review our rates, these may have shifted since the last review.

Choosing the Best 5-Year Fixed-Rate Mortgage for You

When choosing the best 5-year fixed-rate mortgage, there are 3 things to consider.³

Your Financial Situation

Your financial situation refers to your credit history, where you are planning to purchase the property, and the size of your deposit. 

The amount you’re able to put down as a deposit has a direct impact on the interest rate and will likely determine how low your rate will be. 

You will need to make use of a mortgage calculator to determine your affordability because an increased interest rate will likely affect your monthly repayments. 

Fees and Charges

There are certain fees and charges associated with mortgages.

These include what you need to pay upfront or what you’ll pay if you want to leave your mortgage early.

Available Mortgage Rates

Finding the best 5-year fixed mortgage rates available out there might seem like the trickiest part of your journey.

But by now, you should know about your deposit percentage as well as the fees and charges to look out for when selecting a mortgage. 

Lower fixed-rate mortgages tend to have higher fees and charges - so steer clear of those. 

What Are the Best 5-Year Fixed Rate Mortgages in the UK?

There are several banks and building societies offering the best 5-year fixed-rate mortgages in the UK. 

Santander 5-Year Fixed Mortgage Rate

Santander is lending a helping hand to first-time buyers and customers with smaller deposits and offering a 5-year fixed rate at 5.14% on the 95% LTV.⁴ 

This is a rate reduction of 0.50%.

The bank is also offering this 5-year fixed-rate mortgage with no fee charges and a £250 cashback.

HSBC 5-Year Fixed Mortgage Rate

HSBC is offering a 4.13% standard and a 4.10% premier standard 5-year fixed rate.

For both of these options, after the 5-year term is up, the rate changes to 6.99%.

The difference comes in with the fees, where the standard fee is £999 and the premium is £1499.⁵

Natwest 5-Year Fixed Mortgage Rate

Natwest has 2 5-year fixed mortgage rate options available.

The first is at 4.55% for a deal at 60% LTV and the second is at a 5-year rate of 4.90% at 90% LTV. 

Both offers have no product fees attached to them.⁶

Barclays 5-Year Fixed Mortgage Rate

Barclays has different 5-year fixed mortgage rates available depending on the lending amount.

For a mortgage with a maximum loan of £2m, the bank offers different rates between 4% and 4.7% 

The rate depends on the LTV and ranges from 60% to 85%.⁷

How Did We Identify the Best 5-Year Fixed-Rate Mortgages in the UK?

To identify the best 5-year fixed-rate mortgages in the UK, we focused on several key factors

These included:

• Interest Rates: Searching for the lowest rates to ensure affordable monthly repayments and overall cost.
• Fees and Charges: Evaluating the overall cost by considering upfront, application, and early repayment charges.
• Lender Reputation: Assessing lenders based on their customer service, financial stability, and support.
• Flexibility: Features like overpayment allowances and portability were considered important for borrower adaptability.
• Loan-to-Value Ratio (LTV): Products with a higher LTV were preferred for requiring a smaller deposit.
• Customer Feedback: Reviews and ratings were used to gauge service quality and product satisfaction.

This streamlined approach, prioritising crucial financial and service quality factors, aided in pinpointing the most competitive mortgages.

Common Questions

In Conclusion

Finding the best 5-year fixed mortgage rate for you is easy. 

Why? Because you have many options to choose from. 

Banks and building societies are in a price war that could benefit you and help you get the best 5-year fixed mortgage rate at the lowest price.