Should You Fix for 2 or 5 Years? A Broker's View

24 Sep 2026 · 4 min read

With rate expectations shifting, the 2 vs 5-year question is back on everyone's lips. Here's how we're advising clients right now.

Why does this question keep coming up?

When rates are rising, five-year fixes feel like shelter. When rates are expected to fall, two-year fixes seem smarter — lock in for less time and benefit from a cut when it comes. In 2026, with rates stabilising after a prolonged elevated period, the answer is genuinely less clear than it was 12 months ago. Both options have merit, and the right choice depends on a combination of market outlook and personal circumstances.

The case for a two-year fix

If you believe rates will fall further over the next 18–24 months, a two-year fix means you're back in the market sooner. You'll pay arrangement fees again on remortgage, but if rates have meaningfully improved, the saving can outweigh that cost. Two-year fixes also suit people with changing circumstances — a house move, growing family, or job change on the horizon that might require flexibility sooner than five years.

The case for a five-year fix

Certainty has a value that's hard to quantify until rates move against you. A five-year fix locks your payment for 60 months regardless of what happens with inflation, the base rate, or swap markets. The rate differential between two and five-year deals has narrowed considerably in 2026, meaning the premium for certainty is smaller than it has been historically — making the five-year case more compelling than at any point in recent years.

What we're advising clients right now

Our honest view in September 2026 is that the five-year fix represents better value for most buyers and remortgagers — not because we know rates will rise, but because the additional certainty costs relatively little. That said, personal circumstances should always drive the decision. For clients planning to move within two or three years, a two-year fix or even a tracker may be more appropriate. We analyse this individually for every client before making a recommendation.

Have questions about your situation? Our team offers a free, no-obligation consultation — no upfront fees, just straightforward advice.

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