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Two years or five? The real cost of each, side by side
A two-year fix is usually cheaper today. A five-year fix wins if rates are higher when the two years are up. Put in your own numbers below and see which option costs less over five years, and the one remortgage rate that tips it.
Updated on 29 September 2026. The calculator starts from some of the lowest two-year and five-year fixed rates available in late September 2026. It now counts a fee every time you take a new deal, lets you choose whether you would fix for two or five years in 2028, and is easier to use on a phone.
If your fixed rate ends in the next six months, you are probably weighing up the same question as everyone else: fix for two years or five? Neither is simply the right answer. The two deals are priced to do different jobs, and which one works out cheaper depends on something nobody knows yet: what rate you can get when a two-year deal ends.
What we can do is show the trade-off. The calculator takes the same mortgage down both routes for five years and counts every pound: what you pay each month, the interest, the fees each time you take a new deal, and what you still owe at the end. On the two-year route you choose what you would do next: fix for two years again, or fix for five.
Two-year or five-year fix calculator
Your mortgage and the deals you are comparing
Arrangement fee plus any valuation or legal costs. Many of the lowest rates carry a fee, often around £999, so it is worth adding yours.
When the two-year fix ends in 2028…
And fix for
Follows your 2028 rate until you change it.
Two-year fix, then another two-year fix Cheaper
interest and fees over five years
- Monthly, first two years
- Monthly, next two years
- Monthly, final year
- Fees
- Left to pay after five years
Five-year fix Cheaper
interest and fees over five years
- Monthly, all five years
- Fees
- Left to pay after five years
What this assumes
- Both routes are compared over the same five years, counting interest, fees and what you still owe at the end.
- The two-year route takes a new deal in 2028 at the rate you set, and another in 2030 if you choose to fix for two years again.
- The fee you enter is paid every time you take a new deal: once on the five-year route, and two or three times on the two-year route.
- A capital repayment mortgage over the same term throughout, with no overpayments. Fees are paid up front, not added to the loan.
- The starting rates are examples of the lowest fixed rates available in late September 2026. Rates like these usually need a larger deposit and a clean credit record, and they are not a rate we can promise you. Put in the rates you have actually been quoted.
These are illustrations, not a quote or a recommendation. Nothing you type here is saved or sent to us.
The one number that settles it
Somewhere between rates falling and rates rising, the two options cost exactly the same. That is the break-even rate, and the calculator marks it on the slider.
If you think you could remortgage below that rate in two years’ time, the two-year fix is the better buy. If rates end up above it, the five-year fix wins, and the further above, the more it saves. Nobody knows which way it will go, but knowing the number turns a vague worry into a clear question: how likely is it that rates will be higher than this?
Three things the arithmetic can’t price
Fees, twice over
A two-year fix means arranging a mortgage twice as often. Product fees, and sometimes valuation and legal costs, come round again in two years. Put your fees into the calculator above and it charges them every time you take a new deal, so you can see how much of the monthly saving they eat.
Where you might be in five years
Moving house, letting the property out, splitting up or paying off a lump sum can all happen during a long fix. Many deals can be moved to a new home, but not always on the terms you need. If life might change, an early repayment charge is a real cost, not a footnote.
What a payment rise would do to you
If a £250 a month rise would genuinely hurt, the five-year fix is buying certainty, not chasing a saving. Paying a little more for a payment that cannot surprise you is a perfectly sensible choice.
Which tends to suit whom
| Your situation | Usually points to | Because |
|---|---|---|
| Payments are already tight | Five years | Certainty is worth more than a small monthly saving |
| You might move within three years | Two years | You are less likely to pay an early repayment charge |
| You expect your income to rise | Two years | A lower loan-to-value or better affordability may open up better rates later |
| You are nearly through the mortgage | Either | On a small balance, rate differences move little money |
| You plan to pay off lump sums | Check the small print | The overpayment allowance can matter more than the headline rate |
Questions people ask us
How early can I lock in a new rate?
Many lenders let you secure a new deal up to six months before your current one ends. If rates fall in the meantime, you can often switch to a cheaper deal before it starts, so it usually makes sense to look early.
Is a three-year fix a sensible middle ground?
Sometimes. There are fewer three-year deals to choose from, and the rates are often closer to five-year pricing than two-year. Compare it on the same basis, interest and fees over the period, rather than on the headline rate.
What happens if I do nothing when my fix ends?
You move onto your lender’s standard variable rate, which is usually well above the fixed deals available. It is often the most expensive option of all, and the easiest one to end up on by accident. Our guide to what to do when your fixed rate ends covers the options.
Does the lowest rate always mean the lowest cost?
No. A £1,495 product fee on a small balance can outweigh a 0.15% lower rate, and adding the fee to the loan means paying interest on it for years. Always compare the total cost over the deal period, which is what the calculator does.
Want a second pair of eyes?
If you would rather talk it through than read a chart, that is what we are here for. Tell us your current deal and when it ends, and we will set out your options plainly. Our advice is fee-free and there is no obligation. You can also read more about remortgaging with us, or see how long to fix for in more depth.
The figures in this article and calculator are illustrations only. They assume a capital repayment mortgage and do not include valuation or legal costs unless you add them as fees. They are not a quotation or a personal recommendation. Your home may be repossessed if you do not keep up repayments on your mortgage.
Disclaimer:
This article is for general guidance purposes only and does not constitute legal, financial, or professional advice. Mortgage products and their terms can vary, and it is important to seek advice from a qualified, regulated professional who can assess your individual circumstances. Please ensure you consider your unique needs before making any financial decisions.
While every effort is made to ensure that the information provided on this blog is accurate and up-to-date, we do not guarantee its completeness or accuracy. The mortgage market can change rapidly, and the information on this blog may become outdated. We recommend verifying any information before acting on it and seeking tailored advice.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
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