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Best 2 Year Fixed-Rate Mortgages
Compare two-year fixed-rate mortgages and see if you can save
Compare 1000s of mortgage deals covering the whole market
Your mortgage is likely to be your biggest financial commitment. So shopping around for the best mortgage rates is vital. MoneySuperMarket can help you compare thousands of mortgage products from a wide variety of lenders, covering the whole of the market. This way, you can be confident you’re getting the right deal.
Our best 2 year fixed rate mortgages
Take a look below at our best 2 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 15/10/2025
Club Lloyds current account holders only
Lloyds
2 year fixed
Representative example: a repayment mortgage amount of £250,000 over 25 years, representative APRC 6.9%. Total amount payable £528,197.16 includes interest of £277,098.16 product fees of £999 and other fees of £100. Repayments: 28 months of £1,312.70 at 3.95% (fixed), then 272 months of £1,802.73 at 7.49% (variable). Early repayment charges apply.
Great for
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£250 cashback
Halifax
2 year fixed
Representative example: a repayment mortgage amount of £250,000 over 25 years, representative APRC 7%. Total amount payable £528,977.96 includes interest of £277,878.96 product fees of £999 and other fees of £100. Repayments: 28 months of £1,326.50 at 4.05% (fixed), then 272 months of £1,804.18 at 7.49% (variable). Early repayment charges apply.
Great for
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£250 cashback
Get a decision in principle from NatWest
Natwest
2 year fixed
Representative example: a repayment mortgage amount of £250,000 over 25 years, representative APRC 6.6%. Total amount payable £509,777.90 includes interest of £258,752.90 product fees of £995 and other fees of £30. Repayments: 27 months of £1,330.66 at 4.08% (fixed), then 273 months of £1,731.96 at 6.99% (variable). Early repayment charges apply.
Great for
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Free valuations
What is a two-year fixed-rate mortgage?
Simply put, a two-year fixed-rate mortgage is a type of home loan where your interest rate and monthly repayments stay the same for two years. That applies regardless of what happens to the Bank of England’s base rate. For this reason, a two-year fix could be good bet if you expect interest rates to rise in the near future and want the peace of mind of knowing your payments won’t go up.
Once the two-year fixed period is over, you should generally be able to take out a new fixed-rate or variable-rate plan without being charged. If you don’t do that, you’ll be moved onto the lender’s standard variable rate (SVR). The SVR tends to be higher than a fixed rate, so you may want to consider remortgaging before the SVR kicks in.
Who is a two-year fixed-mortgage for?
Anyone can choose to take out a two-year fixed-rate mortgage. But it might be best suited to those people who aren’t ready to tie themselves into a long-term deal.
Particularly if they believe they’ll be able to find an even better deal in two years’ time. For instance, some homeowners may expect interest rates to decrease or their house value to increase rapidly.
What types of mortgages can I get on a two-year fixed rate?
Confused as to what kind of mortgage you can get on a two-year fixed rate? Then read on
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First time buyers
Two-year fixed term deals are popular with first time buyers, as traditionally they’ve always offered the lowest rates, making mortgage repayments more affordable. That’s changing with cheaper five-year plans, but 24 months can be enough to build up more equity before shopping around for a newer, cheaper deal.
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Buy-to-let
Two-year fixed rate mortgages are a good way to start with buy-to-let mortgages, as they do not require a larger deposit like five or 10-year plans.
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Remortgaging
With interest rates seemingly flattening, a two-year mortgage could be attractive if you’re remortgaging and hoping to see a fall in mortgage rates within 24 months. Just be aware that you’ll need to pay for a new mortgage within two years, costing between £1,000 and £1,500.
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Moving home
If you’re moving, a two-year fixed rate offers a nice blend of stability and flexibility. You’re unlikely to move within 24 months, meaning no nasty early repayment charges.
Pros and cons: why choose a two-year fixed-rate mortgage?
As with most things, a two-year fixed-rate mortgage comes with its own array of benefits 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.
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Pros:
Repayments will stay the same for the two years when your initial rate applies, giving you both certainty and stability
Knowing how much you owe per month will allow you to manage your finances more easily
Compared to other fixed options, you’re not locked in for too long and early-exit fees are more affordable
If interest rates are rising, you won’t be affected and are also likely to pay less than you would on a variable-rate deal
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Cons:
If interest rates decrease, you won’t benefit from lower repayments in the way that you would with a variable-rate mortgage or tracker-rate mortgage
At the start of your two-year fixed-rate mortgage deal, you’re likely to pay higher mortgages rates than variable-rate deals
It’s a short fixed-term option, meaning that you’ll need to look for other mortgage plans more frequently
Shorter-term two-year deals can be more expensive than longer-term fixes, especially if you have a small deposit. It’s best to shop around to see whether a longer-term five or 10-year fixed-rate mortgage might be more affordable.
Compare mortgage deals with MoneySuperMarket
At MoneySuperMarket, we compare mortgage products from over 90 lenders to bring you the best deals on the market. Just tell us a bit about yourself, your plans, and your property, and we’ll help you find the best solution for your pockets and needs.
Can I fix a mortgage for a longer period?
Yes, a two-year fixed-rate mortgage isn’t the only term when it comes to fixed mortgage plans. There are plenty of options out there, including three-year, five-year, and even 10-year fixed-rate mortgages. In fact, a five-year fixed rate mortgage is the second-most popular in the UK, after 2-year fixes.
Compared to a two-year fixed-rate mortgage, longer deals can help you with long-term financial plans and offer you stable monthly repayments for a more substantial amount of time. This could be a good option if you’re expecting interest rates to go up over the next few years.
A longer-term fix might also allow you to save on the product fees you pay each time you remortgage, which may mean the total amount you pay is less over the full length of the mortgage term.
However, if you need to pay off your mortgage before the end of your fixed-rate period, you’re likely to face a hefty early repayment charge.
What if interest rates fall after I take out a two-year fix?
If interest rates fall after you’ve taken out a two-year fixed rate mortgage, then you will still pay back your loan with the same interest rate agreed at the start of the term. Your monthly payments will not change.
However, if rates do come down, you will be able to get a new deal at a lower rate at the end of your two-year fix.
Our expert says…
Should I get a 2 year fixed rate mortgage?
We are starting to see some two-year fixed mortgages being priced lower than five-year fixed mortgages for the first time since the mini-budget in September 2022. This is an encouraging sign for the market returning to more typical conditions.
However it is important to remember that headline rate is not the only consideration – you should consider your own personal circumstances and how important having a stable monthly payment is for you.
Ashton Berkhauer Home & Utilities Expert
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Use our Base Rate calculator to find out how your mortgage repayments will be affected by changes to the Bank of England Bank Rate.
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Our savings interest calculator will show you how much interest you could accrue on your lump sum or monthly savings, and how long it might take to save towards a specific financial goal.
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How much money can I borrow on a two-year fixed-rate mortgage?
There is no universal answer to this question, as it will depend entirely on your personal circumstances.
Whether you’re applying for a two-year fixed-rate mortgage, a longer-term plan, or a variable-rate deal, each lender will have its own specific criteria. Some of the factors that can influence how much you’re able to borrow are:
Income – your earnings often have a significant impact on how much money you can loan. Lenders tend to offer up to about four times your annual salary
What you already owe – lenders will look at your credit score and history, including previous loans and credit cards
Spendings – how much you spend on bills, child maintenance, and other personal purchases
Do I need a larger deposit for a two-year fixed-rate mortgage?
No, you don’t. There are lenders who allow you to take out a two-year fixed-rate mortgage with a small deposit. This could be, for instance, 5% of your property’s total value and a loan to value (LTV) of 95%.
Bear in mind that, as always, with a larger deposit you’ll be offered more favourable mortgage rates and will benefit from lower mortgage payments.
Can I pay off 2 year fixed-rate mortgage deal before it ends?
Yes, if you have the funds, you’re free to pay off your two-year fixed-term mortgage before the end of the initial-rate, 24 month term.
However, it’s likely that this will come at a cost, as you’ll have to pay an ERC.
Can I get a buy-to-let property with a two-year fixed-rate mortgage?
If you’re planning on renting the house you’ve just purchased, then you’ll need to take out a buy-to-let mortgage. And yes, two-year fixed-rate deals are available for this kind of property too.
That said, you’re generally required to pay a bigger deposit (i.e. between 25% and 40% of the building’s total value). What’s more, compared to residential mortgages, you’ll often be presented with higher interest rates.
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Reviewed on 10 Dec 2025 by
