First time buyer
Two-year fixed term deals are popular with first time buyers, as traditionally they’ve offered the lowest rates, making mortgage repayments more affordable.
Best 2-year fixed-rate mortgages
Compare two-year fixed-rate mortgages and see if you can save
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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 two-year fixed-rate mortgages
Here are 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?
A two-year fixed-rate mortgage is a loan where your interest rate and monthly repayments stay the same (or are "fixed") for two years. It helps to make mortgage repayments predictable, as it applies whether the base rate
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.
If you want to move to a different mortgage before the two-year term comes to an end you may be subject to costly early repayment charges
Who is a two-year fixed mortgage for?
Anyone can choose to take out a two-year fixed-rate mortgage, but it's best-suited to those people who aren’t ready to tie themselves into a long-term deal.
A two-year fix could be an especially good option 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.
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, but you will be able to get a new deal at a lower rate at the end of your two-year fix.
What types of mortgages can I get on a two-year fixed rate?
Two-year fixed-rate mortgages are suitable for several different types of borrowers.
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Buy-to-let
Two-year fixed rate mortgages can be a good place 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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Remortgage
Payment stability in the short term with the opportunity to find a better deal in 24 months if rates fall. It makes sense if you expect rates to fall over the next two years.
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Moving home
A two-year fixed rate offers a nice blend of stability and flexibility. After two years you can find a new mortgage deal and avoid any early repayment charges
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Pros and cons: why choose a two-year fixed-rate mortgage?
A two-year fixed-rate mortgage comes with its own benefits and pitfalls. Here are some of the most important aspects to consider.
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Pros:
Repayments will stay the same for the two years, providing payment stability
Compared to other fixed options, you’re not locked in for too long and early repayment charges will be lower than longer fixed mortgages if you find a better deal
If interest rates fall you can find a better deal in 2 years without incurring early repayment charges
If interest rates rise you are likely to pay less than you would with a variable-rate mortgage
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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 or tracker mortgage
At the start of your two-year fixed-rate mortgage deal you’re likely to pay higher rates than variable-rate deals
It’s a short fixed-term option, meaning that you’ll need to look for other mortgage plans within two years
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 cheaper
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Tell us a few details
Let us know an estimate of the property value, your deposit, the length of your desired term, and how you want to repay
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We browse the market
We sift through mortgage deals from our leading panel of providers. This way, you can see what's on offer and make an informed choice
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.
Longer deals can help you with long-term financial plans and offer you stable monthly repayments for longer. It 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.
But if you need to pay off your mortgage before the end of your fixed-rate period, you’re likely to face larger early repayment charges than with shorter-term fixed mortgages.
Our expert says…
Should I get a 2 year fixed-rate mortgage?
With more base rate
^ cuts expected over 2026, a 2-year fixed-term mortgage allows you to retain flexibility to refinance at the earliest opportunity into an even better value fixed term. Critically though - inflation is the fly in the ointment here - it only works if the disinflation story stays on track.The cost of fixed-term deals can add up when you could be paying around £1,000 for access to the product, especially if you are paying that every two years. For that reason you might consider locking in a fixed rate for three, five, or even ten years."
Ashton Berkhauer Home & Utilities Expert
Calculators for homebuying and remortgaging
Take control of your home-buying journey with our simple mortgage and savings calculators
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Mortgage Affordability Calculator
Find out how much you could borrow with a mortgage by using our Mortgage Affordability Calculator
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Mortgage Repayment Calculator
Work out what your repayments will be based on how much you’re borrowing, the interest rate, related fees, and the mortgage term with our Mortgage Repayment Calculator
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Stamp Duty Calculator
Find out out how much you'll have to pay in stamp duty when you buy your property with our Stamp Duty Calculator
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Base Rate Calculator
Find out how your mortgage repayments will be affected by changes to the Bank of England's base rate
^ with our Base Rate Calculator -
Mortgage Overpayment Calculator
Find out how much you might save by making overpayments on your mortgage with our Mortgage Overpayment Calculator
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How much money can I borrow on a two-year fixed-rate mortgage?
There is no correct 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
To get a better idea how much you could borrow with a 2-year fixed-rate mortgage try our Mortgage Affordability Calculator.
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 two years, but it is likely to incur early repayment charges
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 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.
