Compare our cheapest 3 year fixed term mortgage rates
Browse deals for first-time buyers and remortgaging
Take a look below at our best 3 year fixed rate mortgages, ordered by lowest monthly payment. The mortgage deals below assume a property value of £300,000 with a £50,000 deposit, borrowed over 25 years
Accurate as of 16/10/2025
TSB
3 year fixed
Representative example: a repayment mortgage amount of £250,000 over 25 years, representative APRC 6.8%. Total amount payable £522,060.44 includes interest of £271,065.44 product fees of £995 and other fees of £0. Repayments: 38 months of £1,352.95 at 4.24% (fixed), then 262 months of £1,792.57 at 7.49% (variable). Early repayment charges apply.
Great for
Halifax
3 year fixed
Representative example: a repayment mortgage amount of £250,000 over 25 years, representative APRC 6.7%. Total amount payable £520,641.80 includes interest of £269,542.80 product fees of £999 and other fees of £100. Repayments: 40 months of £1,354.35 at 4.25% (fixed), then 260 months of £1,789.88 at 7.49% (variable). Early repayment charges apply.
Great for
Bank of Ireland
3 year fixed
Representative example: a repayment mortgage amount of £250,000 over 25 years, representative APRC 6.6%. Total amount payable £511,879.68 includes interest of £260,174.68 product fees of £1,495 and other fees of £210. Repayments: 38 months of £1,358.55 at 4.28% (fixed), then 262 months of £1,750.19 at 7.19% (variable). Early repayment charges apply.
Great for
A three-year fixed-rate mortgage is a type of home loan where your interest rate and monthly repayments stay the same for three years. This means your payments won’t change during that period, no matter what happens to the Bank of England’s base rate. It can offer peace of mind and stability if you want slightly longer protection against potential rate rises than a shorter two-year deal.
When the three-year fixed term ends, you’ll usually have the option to switch to another fixed or variable-rate mortgage without paying an early repayment charge. If you don’t, your lender will move you onto their standard variable rate (SVR), which is often higher. To avoid higher repayments, many borrowers look to remortgage before the SVR starts.
A two-year fixed-rate mortgage can be a flexible option for many different types of borrowers, offering short-term payment certainty without locking you in for too long.
Three-year fixed-rate deals are often popular with first-time buyers because they’ve traditionally come with some of the lowest interest rates available. This can help keep monthly repayments more manageable in the early years of homeownership.
For buy-to-let investors, a three-year fixed rate can be an accessible starting point. These deals typically don’t require the larger deposits that are often needed for five- or ten-year fixed-rate mortgages.
If you’re remortgaging, a three-year fixed rate offers short-term payment stability while keeping your options open. It can be a sensible choice if you expect interest rates to fall and want the flexibility to switch deals again in 36 months.
When moving home, a three-year fixed-rate mortgage provides a balance between certainty and flexibility. Once the fixed period ends, you can look for a new deal without facing early repayment charges
A three-year fixed-rate mortgage comes with both advantages and disadvantages.
Here are some of the aspects you may want to take into consideration when choosing whether this type of mortgage is the right option for you.
Your repayments will stay the same for the three years when your initial rate applies, giving you stability and helping you plan your budget with confidence
Knowing exactly what you’ll pay each month makes it easier to manage your finances without worrying about rate changes.
A three-year fix offers a good balance - it’s longer than a two-year deal, giving you extra peace of mind, but not as much of a commitment as a five-year term.
If interest rates rise during your fixed period, your payments won’t be affected, potentially saving you money compared to a variable-rate deal.
If interest rates fall, you won’t benefit from lower repayments in the way you would with a variable or tracker-rate mortgage.
At the start of your three-year fixed-rate deal, you may pay a slightly higher rate than with shorter-term fixes.
You’ll still need to remortgage relatively soon after the three-year period ends, which could mean paying new product or arrangement fees.
If you repay or switch before the end of your three-year term, you may face an early repayment charge.
Yes, if you’d like more long-term stability than a three-year fixed-rate mortgage provides, you can choose a five-year or even a ten-year fixed-rate deal. These longer fixes allow you to lock in your interest rate and monthly repayments for a greater period of time, helping you plan your finances with more certainty.
Compared to a three-year fixed-rate mortgage, longer-term options can offer extra peace of mind if you’re expecting interest rates to rise or want to avoid remortgaging as often. They can also help you save on product fees that come with switching deals more frequently.
However, if you repay your mortgage or switch to a new deal before the end of your fixed term, you may face an early repayment charge - so it’s worth considering how long you’re comfortable committing to your current mortgage.
With inflation trending back towards target, a 3 year fixed term balances the falling rate potential with some protection if price pressures flare again. But inflation returning and being sustained at 2% is far from a done deal. If you’re a little more cautious 3 year may be the way to go.
Ashton Berkhauer Home & Utilities Expert
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Reviewed on 21 Jan 2026 by
The base rate or 'Bank Rate' is the official interest rate set by the Bank of England that guides commercial lenders and banks.
The base rate is currently 3.75%.
An early repayment charge (ERC) is a fee for ending a mortgage deal before the term ends. Typical ERCs range between 1% and 5% of the remaining loan amount if you want to end it early.
ERCs often also apply if you attempt to pay back more than 10% of the outstanding loan amount in a single year.
Find out more in the MoneySavingExpert guide to early repayment charges.
