The “which fix?” question is back because the gap between two and five-year deals has all but vanished.
In August, the average two-year fix nudged below the five-year for the first time since 2022 (roughly 5.00% vs 5.01% on the day Moneyfacts reported it)[1].
For context, the Bank of England cut Base Rate to 4% at its August meeting (announced 7 Aug).
So how do you work out which option makes more sense right now? It usually comes down to your plans for the next few years.
Start With This: How Long Will You Stay Put?
- Staying put 5+ years? A five-year fix prioritises stability. Your payments don’t change for longer, which helps with budgeting and removes “remortgage admin” for a while.
- Unsure, or likely to move/refinance in 2–3 years? A two-year fix keeps your options open. You’ll review sooner, which could help if rates fall – but you’ll face another round of checks and costs earlier.
- Need flexibility? If a job move, new baby or renovation is on the cards, think about early repayment charges and portability. The right choice is the one that won’t penalise you for changing plans.
Who a 2-Year Fix Can Suit Right Now
- You expect to move or remortgage within 2–3 years.
- You think rates may drift lower and want the option to reset sooner.
- You’re comfortable that you’ll face another affordability check and product search in two years.
Watch-outs: two sets of arrangement fees over the next five years; two chances to fall onto a high SVR if you forget to switch.
Who a 5-Year Fix Can Suit Right Now
- You plan to stay put and value payment certainty through to 2030.
- Your budget is tight and a stable direct debit helps you sleep at night.
- You don’t want the hassle or cost of re-fixing again in 2027.
Watch-outs: longer early-repayment charges; if rates fall sharply, you’re locked in (check whether your deal is portable if you might move).
The Bottom Line
Because two and five-year averages are essentially neck-and-neck right now, the deciding factor is your timeline. If you want certainty for longer, lean towards five years.
If you want options sooner, lean towards two. Either way, compare the total cost (including fees) and what happens next when the fix ends.
If you’d like a personalised run-through based on your plans and budget – get in touch, we can crunch the numbers for you.
Source Data
[1] Moneyfacts via Mortgage Solutions – Average two-year fixed mortgage rate now below five-year fix.
