Compare our best 2 year fixed rate mortgages

The initial interest rate on a 2 year fixed rate mortgage stays the same for two years. After that, you are automatically put on to your lender's standard variable rate (SVR). Compare 2 year fixed mortgages and find our best deals. Explore our guide on 2 year fixed rate mortgages to learn more.

Mortgage type

Property price

£

Mortgage amount

£

Mortgage term

years

Initial rate type

Deal length

Repayment type

Our best 2 year fixed rate mortgage deals

  • TSB 2 Year Fixed mortgage

    Initial rate 1.44%. APRC 3.4%. Set-up fees £995
  • Nationwide Building Society 2 Year Fixed mortgage

    Initial rate 1.69%. APRC 3.4%. Set-up fees £999
  • Barclays 2 Year Fixed mortgage

    Initial rate 1.74%. APRC 3.4%. Set-up fees £999
  • TSB 2 Year Fixed mortgage

    Initial rate 1.79%. APRC 3.3%. Set-up fees £0
  • Lloyds Bank 2 Year Fixed mortgage

    Initial rate 1.8%. APRC 3.6%. Set-up fees £1,499
  • Lloyds Bank 2 Year Fixed mortgage

    Initial rate 1.91%. APRC 3.5%. Set-up fees £999
  • Nationwide Building Society 2 Year Fixed mortgage

    Initial rate 1.94%. APRC 3.4%. Set-up fees £0
  • Scottish Widows Bank 2 Year Fixed mortgage

    Initial rate 1.95%. APRC 3.7%. Set-up fees £749
  • Scottish Widows Bank 2 Year Fixed mortgage

    Initial rate 1.99%. APRC 3.7%. Set-up fees £0
  • We've found 147 mortgage deals

    TSB

    2 Year Fixed

    Initial rate

    1.44%

    until 30-11-2022

    APRC

    3.4%

    overall cost for comparison

    Set-up fees

    £995

    Monthly payment

    £675.11

    for 24 months

    Nationwide Building Society

    2 Year Fixed

    Initial rate

    1.69%

    APRC

    3.4%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £695.17

    for 24 months

    Barclays

    2 Year Fixed

    Initial rate

    1.74%

    until 31-10-2022

    APRC

    3.4%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £699.23

    for 24 months

    TSB

    2 Year Fixed

    Initial rate

    1.79%

    until 30-11-2022

    APRC

    3.3%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £703.30

    for 24 months

    Lloyds Bank

    2 Year Fixed

    Initial rate

    1.8%

    until 30-11-2022

    APRC

    3.6%

    overall cost for comparison

    Set-up fees

    £1,499

    Monthly payment

    £704.11

    for 24 months

    Lloyds Bank

    2 Year Fixed

    Initial rate

    1.91%

    until 30-11-2022

    APRC

    3.5%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £713.13

    for 24 months

    Nationwide Building Society

    2 Year Fixed

    Initial rate

    1.94%

    APRC

    3.4%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £715.60

    for 24 months

    Scottish Widows Bank

    2 Year Fixed

    Initial rate

    1.95%

    until 31-01-2023

    APRC

    3.7%

    overall cost for comparison

    Set-up fees

    £749

    Monthly payment

    £716.42

    for 24 months

    Scottish Widows Bank

    2 Year Fixed

    Initial rate

    1.95%

    until 31-01-2023

    APRC

    3.7%

    overall cost for comparison

    Set-up fees

    £749

    Monthly payment

    £716.42

    for 24 months

    Scottish Widows Bank

    2 Year Fixed

    Initial rate

    1.99%

    until 31-01-2023

    APRC

    3.7%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £719.73

    for 24 months

    Not ready to get a mortgage?

    Learn more about how to get a mortgage

    Show simple deals list

    Representative example:

    If you borrowed £200,000 payable over 25 years, with an initial fixed-rate for two years at 4.79%, your monthly payments would be £1,144.84 for 24 months. This would then revert to a standard variable rate (SVR) of 4.24% for the remaining 23 years, costing £1,086.24 per month for 276 months. Overall cost for comparison is 4.5% APRC representative. The total amount payable over the full term would be £328,272, including product fee of £995 and interest of £127,277.

    Your home may be repossessed if you do not keep up repayments on your mortgage.

    What is a 2 year fixed rate mortgage?

    A 2 year fixed rate mortgage is the shortest term fixed rate home loan you can get in the UK.

    As the name suggests, a 2 year fixed rate mortgage gives you a set interest rate for two years – after which your interest rate reverts to your lender’s standard variable rate (SVR).

    With a 2 year fixed rate mortgage, you can benefit from some of the best interest rates on the market: in May 2020 they started at 1.16% if you had a 40% deposit (60% LTV), or about 1.39% if you could only find a deposit of 20% (80% LTV).

    The best 2 year fixed rates just about match the lowest tracker mortgages, but with the added security that the interest rate will not change during the next two years, even if the Bank of England hikes the base interest rate – which currently stands at just 0.10%*.

    *At this time, the Bank of England had responded to the Covid-19 pandemic by reducing the base rate to this historic low, pushing down the cost of fixed rate mortgages, including the best 2 year mortgage rates.

    One thing to bear in mind with fixed rate mortgages is that you will often be penalised if you want to overpay, or if you sell your house or switch mortgages before the promotional period ends.

    Each mortgage is different: some will let you overpay by a certain amount per year (usually up to 10%) while others will penalise you for any amount of repayment. Usually the overpayment fee will be a percentage of the amount overpaid – but this varies from mortgage to mortgage, so be sure to check your paperwork (or pick up the phone and speak to your lender).

    The early repayment fee is almost always a hefty charge – around 2% or 3% of the remaining balance on your mortgage. That might not sound like much, but on a £400,000 mortgage, for example, it could cost you upwards of £10,000.

    What happens after the fixed rate ends?

    The main issue with a 2 year fixed rate mortgage is that the cheap, fixed rate doesn’t last very long. After two years have elapsed you’ll be moved to the lender’s SVR, which at current levels could be anything from 3.5% to 5%. On a mortgage of £400,000 over 25 years, this would push your repayments up from around £1,500 per month to more than £2,000.

    The way around this is to seek out a new mortgage deal about two to three months before your fixed rate period ends.

    Your current lender may offer you another fixed rate deal, or you can remortgage and switch to another lender. But beware: most mortgages come with set-up fees. Common charges include a booking or arrangement fee of say £1,000, plus around £150 for a valuation/survey.

    It’s important to take these fees into consideration when comparing deals; a fee free mortgage with a slightly higher interest rate may work out cheaper overall.

    What is the longest fixed rate mortgage I can get?

    The longest fixed rate mortgage deal in the UK is 10 years. You will pay a pretty hefty premium for financial security, though: the interest rate is usually about 1% higher than the best 2 year fixed rate deals.

    But if you think you’ll be in the property for a long time – or your lender has stipulated that you have a portable mortgage, meaning you can take it from one property to the next without charge – knowing your monthly payments won’t increase for a decade could be worth the extra cost.

    That said, interest rates could always fall (as they have done in 2020 due to Covid-19), so that “great deal” you took out may wind up looking rather expensive.

    Are fixed rate mortgages the best deals?

    The best 2 year fixed rate mortgage will not necessarily offer the lowest interest rate on the market. But for a few pounds more a month than the cheapest variable rate mortgage, you can relax in the knowledge your interest rate will not go up even if the Bank of England changes the base interest rate.

    You may end up paying slightly over the odds if interest rates fall during the two year term, but this will help you to find a new low rate mortgage deal when it’s time to remortgage.

    Can I get a 2 year fixed rate mortgage?

    Yep! First-time buyers, remortgagers and homemovers can all take out a 2 year fix. There are no particular criteria that you need to fulfil to be eligible for a 2 year fixed rate mortgage. As always, the best 2 year fixed rate mortgages with no fee will only be available if you have a big deposit, ideally 20% (80% LTV) or more.

    Just remember to compare the total cost of 2 year fixed rate deals when taking out a new mortgage. This means working out how much you will pay in interest AND lenders’ set-up fees, which can cost as much as £2,000.

    Compare other types of mortgage

    Did you find this useful?

    Last updated: 6 August, 2020