The best UK five-year fixed-rate mortgages 2017
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 |
60% | 1.69% | £999 |
| |
65% | 1.74% | £995 |
| |
70% | 1.84% | £999 |
| |
75% | 1.89% | £999 |
| |
80% | 2.09% | £1,450 | 3% in year one then 2% until end of fixed period. | |
85% | 2.19% | £1,499 |
| |
90% | 2.55% | £895 |
|
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 |
60% | 1.94% | £0 | 3% in year one then 2% until end of fixed period. | |
65% | 1.94% | £0 |
| |
70% | 2.09% | £0 |
| |
75% | 2.04% | £0 |
| |
80% | 2.14% | £0 |
| |
85% | 2.43% | £0 |
| |
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.