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2 year fixed rate mortgages

Finding the right two-year fixed-rate mortgage deal can be tricky. 

Should I fix my rate for longer? What extra fees are involved? What if I want to move soon?

Let Mojo’s expert advisers compare deals to find your best two year fixed-rate mortgage.

How to find the best two-year fixed-rate mortgage with Uswitch and Mojo

Mojo Mortgages is an award-winning mortgage broker. Their experts can compare deals to find the best two-year fixed-rate mortgage for you.

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Compare 2 year fixed rate mortgages from over 70 lenders across the whole of the market

Mojo Mortgages is our award-winning broker partner. Their expert independent advisers can search across the market to find the best deals for you.

TSB 2
Barclays 2
HSBC 2
nationwide 2
Santander 2
Halifax 2
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Accord Mortgages 2
NatWest 2
Skipton
Last updated
April 17th, 2024
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What is a two-year fixed-rate mortgage?

With a two-year fixed-rate mortgage, your interest rate stays the same for the first two years of your deal. So your mortgage repayments won't rise, no matter what happens to interest rates during that time.

Like the majority of mortgage deals, most two-year fixed-rate mortgages charge fees if you leave or repay the mortgage balance before the end of the deal term.

Once the two years have passed, you should be able to switch to a new fixed or variable-rate deal without penalty.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.

The FCA does not regulate mortgages on commercial or investment buy-to-let properties.

Best two-year fixed mortgage rates

This table shows some of our partner Mojo's best two-year fixed-rate mortgage deals based on their initial rates available at different loan-to-value (LTV) ratios. This initial rate is what you pay throughout the introductory period (for a two-year fixed-rate mortgage, the introductory period is two years).

The APRC (Annual Percentage Rate of Change) is included after each initial rate. APRC provides an overall picture of the mortgage deal, taking fees and the lender's standard variable rate (SVR) you typically fall onto after the introductory period into account.

This can be useful when comparing different mortgage deals, but doesn't consider that many people remortgage onto another deal before they move onto the SVR.

LTVCurrent 2-year fixed mortgage rates
90%

Clydesdale Bank

Initial rate: 5.19% | APRC: 8.9%

Repayment mortgage of £270,000.00 over 25 years, representative APRC 8.9%. Repayments: 27 months of £1,608.43 at 5.19% (fixed), then 273 months of £2,303.91 at 9.49% (variable). Total amount payable £672,395.04. Early repayment charges apply until 2 years. Arrangement, mortgage discharge, valuation and CHAPS fees total £1823.

80%

Barclays Bank

Initial rate: 4.99% | APRC: 8.3%

Repayment mortgage of £240,000.00 over 25 years, representative APRC 8.3%. Repayments: 28 months of £1,401.62 at 4.99% (fixed), then 272 months of £1,928.84 at 8.74% (variable). Total amount payable £563,889.84. Early repayment charges apply until 30-Sep-2026. Arrangement, mortgage discharge, valuation and CHAPS fees total £1014. Legal fees £126.

70%

Leeds BS

Initial rate: 4.74% | APRC: 7.6%

Repayment mortgage of £210,000.00 over 25 years, representative APRC 7.6%. Repayments: 27 months of £1,194.85 at 4.74% (fixed), then 273 months of £1,610.74 at 8.24% (variable). Total amount payable £468,844.41. Early repayment charges apply until 31-Aug-2026. Arrangement, mortgage discharge, valuation and CHAPS fees total £1733. Legal fees £120.

60%

Leeds BS

Initial rate: 4.74% | APRC: 7.6%

Repayment mortgage of £180,000.00 over 25 years, representative APRC 7.6%. Repayments: 27 months of £1,024.16 at 4.74% (fixed), then 273 months of £1,380.63 at 8.24% (variable). Total amount payable £401,865.75. Early repayment charges apply until 31-Aug-2026. Arrangement, mortgage discharge, valuation and CHAPS fees total £1733. Legal fees £120.

Date Updated 30 May 2024

The above fixed rates are provided by Mojo Mortgages and updated every 12 hours. THEY MAY NOT BE AVAILABLE WHEN YOU'RE READY TO SUBMIT AN APPLICATION.

Take a look at the current average mortgage rates in the UK.

Should I get a two year fixed rate mortgage?

Two year fixed rate mortgage deals offer the peace of mind of knowing exactly how much your mortgage will cost for those two years. This makes them a good choice if you want to be sure that your payments that won't rise for a set period.

While two year fixes have historically been cheaper than five year fixed-rate mortgages, this is not always the case. Five year fixes have typically been lower than the best two-year fixed mortgage rates in 2023 and 2024.

“Once you’ve found a rate you’re happy with, move quickly in order to secure it. In some cases lenders are only providing a couple of hours’ notice before increasing rates, so have your documents ready and get them to your broker as soon as possible.”
Dean Wickett, Mortgage Expert at Mojo Mortgages

Should I fix my mortgage for two or five years?

Once you've weighed up the price differences, how long you fix your mortgage rate for comes down to how much certainty you need, your current financial circumstances, and what your future plans are, both financially and in terms of home ownership.

You could consider the following when making your choice:

  • Is security or saving money more important to you? – if it’s security you might feel better to fix for longer, but this way there's more potential to lose out if mortgage interest rates fall

  • How long will you stay in your home? – if you’re looking to move home in a couple of years, it’s probably best not to fix for a long duration. You may need to remortgage and if you’re locked into a fixed-rate period, it would be much more expensive to switch mortgages if you needed to

  • Remortgage fees – even if you stick to shorter fixes to avoid ERCs, there are still a range of fees that apply to remortgaging, which means you can face significant costs if you remortgage regularly

Advantages of a two-year fixed-rate mortgage

  • Your repayments won't rise for two years, even if mortgage rates go up

  • Knowing how much you’ll be paying each month makes it easier to manage your finances

  • If interest rates rise across the market, you're likely to be paying less than on a variable-rate deal

  • If rates fall or you want to move house, you only have to wait two years at most to pay off your mortgage without facing ERCs

Disadvantages of a two-year fixed-rate mortgage

  • You’ll generally pay higher mortgage rates than variable rate deals at the start

  • You’ll lose out on more competitive rates if interest rates fall during your two year fixed rate mortgage term

  • You’ll usually pay a higher arrangement fee for a fixed-rate

  • You’ll need a new deal in two years, which means more remortgage fees

  • If you want to switch your mortgage within two years, you’ll usually still have to pay ERCs to leave early

What happens at the end of my two year fixed mortgage?

When your two year fixed rate period ends, you automatically move on to your lender’s standard variable rate (SVR). This is almost always higher than mortgage deals available from your existing and new lenders.

To avoid the SVR, it's best to start looking at your remortgage options six months before your deal comes to an end. This allows you to lock in a rate early that may not be available in six months time. You then transfer to the new deal when your rate ends, instead of the SVR. This includes 5 year fixed rate and 10 year fixed rate mortgage deals.

The best thing is, if you see a better mortgage rate in the meantime, you can still switch, as you're not locked into a new deal until your existing one expires.

Can I fix my mortgage for longer?

Yes, fixed-rate mortgage deals are available for two, three, five, seven and 10 years - with some lenders offering them for even longer.

Longer deals can help you maintain long-term financial stability and may be a good option if you expect mortgage interest rates to continue rising for a few years.

However, it’s worth weighing this up against the fact that you'd likely have to pay a considerable amount in early repayment charges (ERCs) to leave a longer deal early if rates do fall.

It's difficult to see ahead and predict what mortgage rates may be doing in five or ten years, but keeping up with mortgage news regularly can be helpful.

Kellie Steedquotation mark
Two-year fixed-rate mortgage deals offer peace of mind that your rate will remain the same for two years. Remember to lock in competitive rates quickly in the current market
Kellie Steed, Mortgage Content Writer

Two year fixed rate mortgages FAQs

Do you need a larger deposit to get a two-year fixed-rate mortgage?

No, the length of deal has no impact on your deposit size. Some two-year fixed-rate mortgages can be taken out with a very small deposit, such as 5% of the property’s value.

However, the bigger your deposit, the better the mortgage interest rates you’ll be offered by lenders. The best mortgage rates are usually available for buyers with a deposit worth at least 40% of the purchase price.

How much can I borrow on a two-year fixed-rate mortgage?

How much you can borrow will depend on your circumstances. Lenders have specific criteria, no matter what type or length of mortgage deal you opt for. Factors that impact how much you can borrow include:

  • How much you earn – most lenders will offer around four and a half times your income, but it can be more for higher earners and those in certain professions

  • How much you can put down as a deposit – the more you put down, the more you can typically borrow

  • How much you already owe – on things like other loans and credit cards 

  • How much you spend – for example on household bills or child maintenance

Are fixed-rate mortgages cheaper than variable-rate mortgages?

Not necessarily – fixed rate mortgage deals are often more expensive than similar variable rate deals at the start. However, they offer more security, as the rate you pay will not change even if interest rates go up.

They can therefore prove cheaper in the long term if interest rates rise during the fixed-rate period. If, however, mortgage rates fall, you could end up paying over the odds.

Can I get a two year fixed buy-to-let mortgage?

Yes, you can take out a buy-to-let mortgage that has a fixed rate for two years. Most landlords like to make use of interest-only mortgages, due to lower monthly costs.

What fees are involved in two-year fixed-rate mortgages?

Taking out any mortgage involves paying various fees. These can include:

  • Arrangement fees, which can range from £0 to more than £2,000

  • Legal fees, which vary depending on the property type and size

  • Deposit

  • Stamp duty

When searching for the best two-year fixed-rate mortgage, it’s therefore important to consider the total cost including fees, not just the mortgage rate on offer. The best way to do this is by looking at the total cost over the initial deal period.

Can I pay off my mortgage before my two-year fixed deal ends?

You’ll have to pay ERCs (early repayment charges) if you want to pay the mortgage off early. These can be up to 5% of the total amount still owed on your mortgage.

If you’re within the last six months of your two-year fix, it’s possible to lock in a new mortgage deal that you'll automatically transfer onto without having to pay ERCs, once your deal ends.

Last reviewed: 3 October 2023

YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.

The FCA does not regulate mortgages on commercial or investment buy-to-let properties.

Uswitch makes introductions to Mojo Mortgages to provide mortgage solutions. Uswitch and Mojo Mortgages are part of the same group of companies. Uswitch Limited is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 312850. You can check this on the Financial Services Register by visiting the FCA website. Uswitch Limited is registered in England and Wales (Company No 03612689) The Cooperage, 5 Copper Row, London SE1 2LH. Mojo Mortgages is a trading style of Life's Great Limited which is registered in England and Wales (06246376). Mojo are authorised and regulated by the Financial Conduct Authority and are on the Financial Services Register (478215) Mojo’s registered office is The Cooperage, 5 Copper Row, London, SE1 2LH. To contact Mojo by phone, please call 0333 123 0012.