UK Property Portal · Mortgage Intelligence
There is no universal answer — it depends on where interest rates go, which nobody knows. What we can do is show you the real numbers the decision turns on, sourced and dated, and the break-even rate that separates the two options. Then you decide, with an adviser.
Information, not financial advice. Nothing here is a personalised recommendation, and it does not account for your circumstances, fees, early-repayment charges, loan-to-value, credit profile or the deals you would actually be offered. Speak to a qualified mortgage adviser or broker before deciding.
These are the Bank of England's own averages across the market at 75% loan-to-value — not a deal you are being offered, and not the best rate available. Your own rate depends on your loan-to-value, credit profile, lender and fees.
| Mortgage balance | Per year | Over 2 years |
|---|---|---|
| £150,000 | £240 | £480 |
| £200,000 | £320 | £640 |
| £300,000 | £480 | £960 |
Assumptions, stated: the gap between the two published averages is 0.16 percentage points (4.81% vs 4.65%). Interest is calculated on a flat balance that never reduces, which overstates the cash difference on a repayment mortgage (your balance falls, so the real figure is smaller). It ignores fees, early-repayment charges and the fact that you would not necessarily be offered the average rate. It covers only the first 2 years — the years both fixes cover, and therefore the only window where this is a sum rather than a guess.
Comparing a 2-year fix against a 5-year fix over the full 5 years needs a rate for years 3–5 — and that rate does not exist yet. Any table that fills it in has made a forecast. So here is the arithmetic that does not need one:
Fix for 2 years now at 4.81%, and to match the 5-year fix at 4.65% overall you would need to re-fix for the remaining 3 years at 4.54% or less. Re-fix below that and the 2-year route wins; above it, the 5-year route does.
Whether you beat it is the actual question, and this page will not pretend to answer it. Worth knowing while you decide: the market is currently pricing the average overnight rate over the next two years at 4.17%, against SONIA today at 3.73% — that is markets pricing rates higher. Market pricing is not a forecast and is frequently wrong, but it is what the money currently says.
Every figure on this page is read from the Bank of England and stored with the date we read it — the same figures, from the same pull, that appear on our citable data hub. Nothing here is modelled, estimated or rounded beyond the source's own precision, and no figure is shown without its date.
Information, not financial advice. Nothing here is a personalised recommendation, and it does not account for your circumstances, fees, early-repayment charges, loan-to-value, credit profile or the deals you would actually be offered. Speak to a qualified mortgage adviser or broker before deciding.
See all our current figures, with citations ↗ · How we build our indices ↗