Should I Fix My Mortgage for 2 or 5 Years?
Getting a Mortgage in 2026
Mortgage rates are dropping, but with 1.8 million homeowners due to reach the end of their fixed terms this year, anxieties remain high after a turbulent few years. Global politics remain volatile, and the potential threat of an international economy-derailing event may have some homebuyers worried.
The base rate is under control and has withstood the tensions of the last six months, despite major events in Iran, the Middle East, the US, and China. The cautious approach of the Monetary Policy Committee, keeping reductions small, steady, and carefully calculated, has proven effective. This article will compare the pros and cons of getting a fixed-rate mortgage of 2, 5 or 10 years. It should provide enough insight for you to consider 3 or 7 year options as well.
Variable rate Around 4.05% - 4.35% | This means you will pay your lender's variable interest rate, relative to the current base rate, however high or low it falls. |
2 year fixed rate Around 4.26% | This will fix your rate until 2028, freeing you to switch in 2 years when we expect rates to be lower. |
5 year fixed rate Around 4.36% | This will protect against rates if they rise again or over the next 2-5 years, freeing you to switch in 2031 when we expect rates to be lower. |
10 year fixed rate Around 4.75% | They are currently higher, offering a 'stability premium', protecting you from potential market volatility over a full decade. However, if interest rates fall below your fixed rate, you will find yourself tied into an above-market rate for the remainder of the fixed term. |
Remortgaging in 2026
For anyone buying with a mortgage, or remortgaging their current property, the million dollar question is 'Will mortgage rates be more or less expensive in 2 years?' There is no way to predict the future with 100% certainty, so, like most other choices in life, we'll only know if we've made the right one, with hindsight.
Read on for our best predictions to factor into your decision.
Will mortgage rates be higher or lower in 2 years time?
The base rate is expected to fall to 3% - 3.5% by 2028. We recommend fixing a two-year deal in 2026, to free you to fix a new, lower deal, assuming trends follow predictions. However, if you'd prefer to protect against long-term volatility, ten-year fixed-term deals are now below 5%, and will provide peace of mind until 2036, even if you end up paying more overall.
What if I don't fix my mortgage?
If you don't fix your mortgage rate, you can choose a variable, or 'tracker' mortgage, which is often around 1% over the base rate. If you reach the end of your fixed term mortgage deal and don't find another one, you'll revert to your lender's standard variable rate which is currently around 7.2%. Fixing is a great way to make sure your repayments won't become any more expensive than you can afford, for a few years at least.
With the BoE base rate steady, now is a good time to fix for a short period
The Bank of England have kept the base rate steady and falling for 6 months, but we expect it to continue falling, albeit slowly. Now is a good time to fix for two years, freeing you to switch again when rates are (likely) lower in 2028. You could opt for a tracker rate instead, but a fixed deal offers some protection against short term volatility.
If your current deal is due to expire in six months or less, you can lock in a fixed rate deal, now. Book a free* meeting with our preferred partner mortgage broker at Advies Private Clients LLP. They have access to the whole of the mortgage market and can discuss which length of mortgage best suits your circumstances.
Meetings are handled by phone for speed and ease so find out when Advies are available next, today:
Free Consultation* | 100% Impartial Advice | Access to Whole Market
Should I opt for a longer or shorter fixed rate mortgage?
There was a slight spike in inflation in December, making an early-2026 base rate cut less likely, causing some lenders to slow their fixed-rate reductions. Some brokers are less confident that we'll see a return to 'normality' within the next two years and recommend different tactics:
- Opt for a 5 year fixed rate - You know that as long as your income and outgoings remain relatively consistent, you can afford this rate, giving you 5 years of relative certainty. It is fairly likely that the base rate will be lower next time you can switch.
- Opt for a 10 year fixed rate mortgage - You'll likely be able to get a better rate, but your risk of getting stuck at an above-market rate increases with the length of time over which rates may fall.
Over the course of 10 years (and even 5) you are more likely to face a change of circumstance which necessitates you move. In this case you may be able to bring your mortgage with you, but you may not be able to borrow more, and any additional loan could be subject to a very different rate.
If you sell before the end of the fixed term, you'll likely be stung by early repayment charges.
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
