The best UK five-year fixed-rate mortgages 2017

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The best UK five-year fixed-rate mortgages
The best UK five-year fixed-rate mortgages

If you're looking for a medium-term mortgage, it's a good time to take out a five-year fixed rate loan.

HSBC has launched a new market leading deal for 1.69% for those with a 40% deposit.

We've taken a look at how HSBC's new deal stacks up against other five-year fixes across the market, ranging from 60%-90% Loan to Value (LTV).

The best of the bunch

Here's how the best five-year fixed rate mortgage deals compare.

Lender

LTV

Interest rate

Product fees

ERCs

HSBC

60%

1.69%

£999

  • 5% until 30/09/2018;

  • 4% until 30/09/2019;

  • 3% until 30/09/2020;

  • 2% until 30/09/2021;

  • 1% until 30/09/2022.

Yorkshire Building Society

65%

1.74%

£995

  • 4% until 31/08/2019;

  • 3% until 31/08/2020;

  • 2% until 31/08/2021;

  • 1% until 31/08/2022.

HSBC

70%

1.84%

£999

  • 5% until 30/09/2018;

  • 4% until 30/09/2019;

  • 3% until 30/09/2020;

  • 2% until 30/09/2021;

  • 1% until 30/09/2022.

HSBC

75%

1.89%

£999

  • 5% until 30/09/2018;

  • 4% until 30/09/2019;

  • 3% until 30/09/2020;

  • 2% until 30/09/2021;

  • 1% until 30/09/2022.

First Direct

80%

2.09%

£1,450

3% in year one then 2% until end of fixed period.

Platform (Intermediaries)

85%

2.19%

£1,499

  • 5% of the amount redeemed until 31 Jul 2018;

  • 4% of the amount redeemed until 31 Jul 2019;

  • 3% of the amount redeemed until 31 Jul 2020;

  • 2% of the amount redeemed until 31 Jul 2021;

  • 1% of the amount redeemed until 31 Jul 2022.

Leek United Building Society

90%

2.55%

£895

  • 5% of the outstanding loan if the mortgage is repaid before 30 June 2018;

  • 4% of the outstanding loan amount if the mortgage is repaid before 30 June 2019;

  • 3% of the outstanding loan if the mortgage is repaid before 30 June 2020;

  • 2% of the outstanding loan if the mortgage is repaid before 30 June 2021;

  • 1% of the outstanding loan if the mortgage is repaid before 30 June 2022.

At the moment, product fees aren't too bad, but there are lower ones. Have a gander at the best five-year deals which have product fees below £500.

Lender

LTV

Interest rate

Product fees

ERCs

First Direct

60%

1.94%

£0

3% in year one then 2% until end of fixed period.

West Bromwich Building Society

65%

1.94%

£0

  • 5% of amount repaid until 30/06/2019;

  • 4% of amount repaid until 30/06/2020;

  • 3% of amount repaid until 30/06/2021;

  • 2% of amount repaid until 30/06/2022.

HSBC

70%

2.09%

£0

  • 5% until 30/09/2018;

  • 4% until 30/09/2019;

  • 3% until 30/09/2020;

  • 2% until 30/09/2021;

  • 1% until 30/09/2022.

West Bromwich Building Society

75%

2.04%

£0

  • 5% of amount repaid until 30/06/2019;

  • 4% of amount repaid until 30/06/2020;

  • 3% of amount repaid until 30/06/2021;

  • 2% of amount repaid until 30/06/2022.

West Bromwich Building Society

80%

2.14%

£0

  • 5% of amount repaid until 30/06/2019;

  • 4% of amount repaid until 30/06/2020;

  • 3% of amount repaid until 30/06/2021;

  • 2% of amount repaid until 30/06/2022.

Post Office

85%

2.43%

£0

  • 4% of the sum repaid until 30/06/2019;

  • 3% until 30/06/2021;

  • 2% until 30/06/2022.

First Direct

90%

2.89%

£0

3% in year one then 2% until end of fixed period.

The good and the bad

A longer fix will give you security for longer, but there is a premium in the form of a higher interest rate. The Early Repayment Charges will also be significantly greater on longer mortgages too.

The major downside is that sticking with one rate for so long means that you might miss out on even better rates over the coming months if they continue to fall. Although, you won't have to pay the charges that come with remortgaging for five years so at least you'll saving money on that front.

And as obvious as it sounds, make sure it's a property you'll be staying in long-term, or at least for the length of the deal. If you think you'll be likely to move home over the five years, check your mortgage deal to see if it's portable and what fees are associated with it. It'll save you those nasty early repayment charges.

Looking for a mortgage? Compare rates and fees at a glance

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