Is it time to lock in a mortgage? Best 5-year deals revealed

Want to fix your mortgage for more than two years and less than 10? Perhaps you should go for a five-year deal

Is it time to lock in a mortgage? Best 5-year deals revealed

With the UK facing much economic uncertainty, it could be a good idea to lock into a longer-term fixed-rate mortgage.

This way, you know your biggest monthly outlay won't change regardless of what happens to the wider economy.

What's more, five-year fixed-rate loans are remarkably cheap at the moment.

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%

1.59%

£999

5% of the amount redeemed until 2018

4% of the amount redeemed until 2019

3% of the amount redeemed until 2020

2% of the amount redeemed until 2021

1% of the amount redeemed until 2022

Metro Bank

65%

1.69%

£999

5% until 2018,
then
4% until 2019,
then
3% until 2020,
then
2% until 2021 the

1% until 2022

HSBC

70%

1.74%

£999

5% of the amount redeemed until 2018

4% of the amount redeemed until 2019

3% of the amount redeemed until 2020

2% of the amount redeemed until 2021

1% of the amount redeemed until 2022

Atom Bank*

75%

1.69%

£1,120

5% until 2018,
then
4% until 2019,
then
3% until 2020,
then
3% until 2021 then 2% until 2022

Leeds Building Society

80%

1.89%

£1,999

5% until 2018,
then
5% until 2019,
then
4% until 2020,
then
3% until 2021 then 2% until 2022

Atom Bank*

85%

1.99%

£1,120

5% until 2018,
then
4% until 2019,
then
3% until 2020,
then
3% until 2021 then 2% until 2022

Atom Bank*

90%

2.39%

£1,120

5% until 2018,
then
4% until 2019,
then
3% until 2020,
then
3% until 2021 then 2% until 2022


*Available via intermediaries

And now let's take a gander at the best deals with a fee of under £500.

Lender

LTV

Interest rate

Product fees

ERCs

Atom Bank*

60%

1.74%

£220

5% until 2018,
then
4% until 2019,
then
3% until 2020,
then
3% until 2021 then 2% until 2022

Virgin Money

65%

1.98%

£0

4% of the outstanding loan balance

HSBC

70%

1.99%

£0

5% of the amount redeemed until 2018

4% of the amount redeemed until 2019

3% of the amount redeemed until 2020

2% of the amount redeemed until 2021

1% of the amount redeemed until 2022

Atom Bank*

75%

1.79%

£220

5% until 2018,
then
4% until 2019,
then
3% until 2020,
then
3% until 2021 then 2% until 2022

Atom Bank*

80%

1.89%

£220

5% until 2018,
then
4% until 2019,
then
3% until 2020,
then
3% until 2021 then 2% until 2022

Post Office Money

85%

2.11%

£0

4% of the sum repaid until 30/11/2019, then 3% until 30/11/2021, then 2% 30/11/2022

Atom Bank*

90%

2.49%

£220

5% until 2018,
then
4% until 2019,
then
3% until 2020,
then
3% until 2021 then 2% until 2022

*Available via intermediaries

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.

Check out The best fixed-rate mortgages for the top two, five- and ten-year deals.

UK property hotspots 2017 (according to Zoopla)

UK property hotspots 2017 (according to Zoopla)