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Fixing your mortgage for 10 years or more is now CHEAPER than a two-year fix – but should you lock in for the long term?

Fixing your mortgage rate for 10 years is now significantly cheaper than two and five-year deals – even the UK's only 25-year fix has a lower rate than the top two-year fix. But there are risks to locking in your mortgage for 10 years or longer. Here's what you need to know.

In normal times, fixed-rate mortgages tend to get more expensive the longer you fix for. So a two-year fix is typically cheaper than a three-year fix, which would be cheaper than a five-year fix, and so on. This is because lenders guarantee a rate while taking on the risk that rates will rise in future.

But for many months now, we've had what's known as an 'inverted yield curve', which means mortgage deals actually get cheaper the longer you fix for. Fixing for two years now costs more than fixing for five years and, in many cases, fixing for 10 years is cheaper than other shorter-term options.

This phenomenon comes amid renewed turmoil in the mortgage market, driven by higher-than-expected inflation figures last month – and the expectation that the UK base rate, which affects what borrowers pay, is going to need to go higher for longer, to slow down rising prices.

How long-term fixed rates compare with shorter fixes

Comparison of fixed-rate mortgages (1)

Loan-to-value Cheapest two-year fix
Cheapest five-year fix
Cheapest 10-year fix Cheapest 25-year fix Cheapest 30-year fix
60% 5.64% 5.18% 4.94% 5.60% 5.65%
75% 5.64% 5.18% 4.94% 5.83% 5.89%
90% 5.64% 5.18% 5.44% N/A N/A

(1) Purchase rates based on a £200,000 property. Correct as of 11 July 2023. 

Ray Boulger, of mortgage broker John Charcol, believes the gap in cost between two-year and longer-term fixes will continue to widen in the weeks ahead – even suggesting that by later in July the interest rates on the top 30-year fixes will beat those of the best two-year fixes.

He said this is down to two factors. Firstly, two-year fixes – which are affected to a greater extent by movements to the Bank of England's base rate than longer-term fixes – will likely be squeezed further by the recent hike to 5%. Secondly, the spread in cost between shorter and longer-term 'gilt yields' – gilts being the main factor affecting the cost of fixed mortgages – is also likely to narrow.

Who can get a long-term fix

Fixing for more than a decade remains niche – in fact, there's currently only one lender, Kensington Mortgages, which offers fixes for 25 or 30 years. Yet 10-year mortgages are typically more common, with a range of mainstream lenders offering them. These include Barclays, Halifax, HSBC, Nationwide, Virgin Money and Yorkshire Building Society.

Typically, you'll need at least 20% equity or deposit (meaning you're borrowing 80% or less of your property's value, known as 'loan-to-value' or LTV) to get a longer-term fix. Right now, only Nationwide, Virgin Money and Yorkshire Building Society are offering 10-year fixes at 90% LTV. The lowest rates on 10-year fixes are for those with 40% or more equity (where the LTV is 60% or less).

You must also factor in arrangement fees – which can typically set you back about £1,000 – so don't just pick a fix based on interest rate alone. Fees are paid upfront or can normally be added to your mortgage balance if you prefer.

Why you might want to consider a long fix – and the risks involved

The big benefit is control over your future payments – fixing over a long period gives you budgeting certainty; you'll know exactly what your monthly payments will be over the next decade (or longer). 

You'll also potentially avoid the associated set-up fees you face when you remortgage. And the longer you lock in for, the less you'll need to worry about how lenders will view your affordability (whether or not you can afford your mortgage) and creditworthiness (whether it's willing to lend to you) in future.

Yet there are significant downsides, too...

  • It'll be tough to get out of the mortgage if it's no longer good value in a few years' time. If interest rates fall over a 10-year period, for example, you could look back at the end of your term and realise it would have been cheaper to take multiple shorter fixes. Normally you'll need to pay an early repayment charge (ERC) if you want to ditch a fixed mortgage mid-term and switch to a new one. 

  • There's no guarantee you'll be able to take the mortgage with you if you move home. If you want to move before the fix ends, you could also encounter ERCs. While many mortgages are 'portable', meaning you can take them with you penalty-free if you move to another property, there's no guarantee your lender will actually agree to porting – for example, your new property may not fit your lender's criteria. So if you can't port and still want to move, you will likely have to pay an ERC. 

    Realistically, you should only seriously consider a long fix if you're confident you're going to be living in the property for a long time. For more on how porting works, see our Porting a mortgage guide.

  • You'll likely be charged if you want to clear the mortgage early. It may be that you come into some money. Lenders tend to allow you to overpay by 10% of your overall mortgage balance each year, but overpay by more than that and, again, you'll likely face having to pay an ERC. 

Thinking of fixing for 10 years or longer? Speak to a broker

Where you're considering fixing a mortgage deal for a decade or longer, it's vital you speak with a mortgage broker to discuss the pros and cons – particularly in this current climate of uncertain mortgage rates. As well as advising you about the possible rates you could get, they'll be able to indicate which lenders are more likely to accept you based on your personal circumstances. 

Read our Cheap mortgage finding guide for more on how to compare mortgage brokers.

Mortgage switch help – what you need to do

Struggling with your mortgage? See our What to do if you're struggling with your mortgage guide or – if you've already fallen behind on your mortgage repayments – our Mortgage arrears guide.

There's full mortgage-switching help in our free 62-page PDF Remortgage guide (there's also our free 53-page First-time buyers' guide). But in brief...


  1. Benchmark what type of rates are out there. Our mortgage comparison tool will help you see what's available currently and compare it against what you're paying now.

  2. Dig out the details of your current mortgage. Such as... What's the rate? What type is it? When's the intro deal over? When must it all be repaid? Will you be penalised to switch deals? What's the loan-to-value (LTV)?

  3. Check out your existing lender's cheapest deal. Use this rate as a benchmark to beat. 

  4. If you've savings, use them to bag a cheaper deal. If you still owe more than 60% of your home's value on a mortgage, the more you can do to drop an LTV band, the cheaper your remortgage will be.

  5. Check out the size of any possible savings on our mortgage calculators. Stick your digits in here... Basic mortgage calculator – including what it'll cost | Compare two mortgages | Compare fixed-rate mortgages | 'How much can I borrow?' guesstimator.

  6. If you're thinking of applying, it's all about whether you'll be accepted. Lenders need to check if you're 'affordable' and whether you could meet repayments if rates shot up. So see our 17 ways to boost your mortgage chances and don't forget to check your credit report for free. Then read up on how to improve your creditworthiness.

  7. If you're serious, speak to a broker – they're currently more important than ever. See our full help on how to find a good broker.

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