Compare our best 3 year fixed rate mortgages

A three year fixed rate mortgage guarantees that your interest rate will stay the same for a three year period. A fixed rate mortgage provides security that your monthly repayments will not change during the fixed term, even if the Bank of England base rate changes or your lender alters their standard variable rate (SVR). To find out more, read our guide to three year fixed mortgages and compare the best deals below.

Mortgage type

Property price

£

Mortgage amount

£

Mortgage term

years

Initial rate type

Deal length

Repayment type

Our best 3 year fixed rate mortgage rates

  • Barclays 3 Year Fixed mortgage

    Initial rate 2.35%. APRC 3.4%. Set-up fees £999
  • Nationwide Building Society 3 Year Fixed mortgage

    Initial rate 2.64%. APRC 3.5%. Set-up fees £999
  • Virgin Money 3 Year Fixed mortgage

    Initial rate 2.64%. APRC 3.9%. Set-up fees £995
  • TSB 3 Year Fixed mortgage

    Initial rate 2.69%. APRC 2.7%. Set-up fees £995
  • TSB 3 Year Fixed mortgage

    Initial rate 2.69%. APRC 3.5%. Set-up fees £995
  • Barclays 3 Year Fixed mortgage

    Initial rate 2.69%. APRC 3.4%. Set-up fees £0
  • Virgin Money 3 Year Fixed mortgage

    Initial rate 2.8%. APRC 3.9%. Set-up fees £995
  • TSB 3 Year Fixed mortgage

    Initial rate 2.84%. APRC 3.5%. Set-up fees £995
  • Nationwide Building Society 3 Year Fixed mortgage

    Initial rate 2.84%. APRC 3.5%. Set-up fees £0
  • We've found 56 mortgage deals

    Barclays

    3 Year Fixed

    Initial rate

    2.35%

    until 31-05-2024

    APRC

    3.4%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £749.87

    for 36 months

    Nationwide Building Society

    3 Year Fixed

    Initial rate

    2.64%

    APRC

    3.5%

    overall cost for comparison

    Set-up fees

    £999

    Monthly payment

    £774.69

    for 36 months

    Virgin Money

    3 Year Fixed

    Initial rate

    2.64%

    until 01-08-2024

    APRC

    3.9%

    overall cost for comparison

    Set-up fees

    £995

    Monthly payment

    £774.69

    for 36 months

    TSB

    3 Year Fixed

    Initial rate

    2.69%

    until 31-08-2024

    APRC

    2.7%

    overall cost for comparison

    Set-up fees

    £995

    Monthly payment

    £779.02

    for 36 months

    TSB

    3 Year Fixed

    Initial rate

    2.69%

    until 31-08-2024

    APRC

    3.5%

    overall cost for comparison

    Set-up fees

    £995

    Monthly payment

    £779.02

    for 36 months

    Barclays

    3 Year Fixed

    Initial rate

    2.69%

    until 31-05-2024

    APRC

    3.4%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £779.02

    for 36 months

    Virgin Money

    3 Year Fixed

    Initial rate

    2.8%

    until 01-08-2024

    APRC

    3.9%

    overall cost for comparison

    Set-up fees

    £995

    Monthly payment

    £788.59

    for 36 months

    Virgin Money

    3 Year Fixed

    Initial rate

    2.8%

    until 01-08-2024

    APRC

    3.9%

    overall cost for comparison

    Set-up fees

    £995

    Monthly payment

    £788.59

    for 36 months

    TSB

    3 Year Fixed

    Initial rate

    2.84%

    until 31-08-2024

    APRC

    3.5%

    overall cost for comparison

    Set-up fees

    £995

    Monthly payment

    £792.08

    for 36 months

    Nationwide Building Society

    3 Year Fixed

    Initial rate

    2.84%

    APRC

    3.5%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £792.08

    for 36 months

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    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 3 year fixed rate mortgage?

    Choosing a 3 year fixed rate mortgage means that your monthly repayments will stay the same for three years, allowing you to budget and not have to worry about interest rate fluctuations. After the fixed rate deal expires, your mortgage interest rate reverts to the lender’s standard variable rate (SVR), which is usually far higher than the fixed rate.

    If you’re looking for the security of a fixed-rate mortgage, but you want more flexibility than a 5 or 10 year fix, a 3 year fixed rate mortgage might be right for you.

    In 2020, the Bank of England base rate stood at just 0.10%. It fell to that level from 0.75% due to the Covid-19 pandemic, having risen from 0.5% to 0.75% in 2018. These changes have an impact on tracker and variable rate mortgages; when the base rate goes up you pay more each month, when it goes down you pay less.

    With a fixed-rate mortgage, your payments remain unchanged regardless of base rate changes. This gives you financial security, but can lead to you paying over the odds if interest rates fall during the term.

    If you choose a fixed-rate mortgage, you will also be penalised for exiting your mortgage before the promotional period ends. The size of this penalty is usually between 2% and 3% of the amount borrowed, which can be tens of thousands of pounds on a larger mortgage. If you’re planning to move home in a couple of years, a 2-year fixed-rate mortgage may therefore be a better bet.

    What happens after the fixed-rate period ends?

    After the promotional period ends, your interest rate will be moved to the lender’s SVR – which is usually 2% or 3% above your fixed rate.

    For example, in December 2020 Barclays’ SVR is currently 3.59%, but it has fixed rate deals at far lower interest rates available. If you fail to switch to a new deal after your fixed rate mortgage deal expires, your monthly repayments can jump significantly and become very expensive. For this reason, if you’re currently paying your lender’s SVR or your fixed rate period is about to end, you should consider remortgaging to save you some serious cash.

    Three-year fixed-rate mortgage FAQs

    Q. Are fixed-rate mortgages the best choice?

    Fixed-rate mortgages offer the security of knowing your monthly repayments won’t change for a set amount of time.

    With the uncertainty of the Covid-19 pandemic continuing to impact the economy, you may welcome the security of knowing exactly how much you will have to pay each month for the next 3 years.

    With the Bank of England base rate at just 0.10% (as of 2020), if you are looking to borrow it can be a good time to snap up low fixed term mortgage rates.

    It’s also worth pointing out that fixed rate mortgages are usually a little more expensive than the cheapest discounted mortgage. So ask yourself how important a fixed monthly repayment is to you.

    Q. How do I get the best 3 year fixed rate mortgage?

    There’s no particular eligibility criteria for a 3 year fixed-rate mortgage. But as with all mortgages, the best products (the mortgages with the lowest interest rates and fees) will only be available if you have a larger deposit.

    For example, if you have a deposit of 20% (80% LTV), you might get an interest rate of 1.84% for three years. If you can increase your deposit to 40% (60% LTV), the interest rate could drop to 1.34%.

    Over the three-year fixed period, the amount of interest that you can save with a higher deposit can be significant.

    Q. Can I get a shorter or longer fixed-rate deal?

    Yes - depending on your circumstances and your needs, there are a range of fixed term mortgage deals available. Currently, the UK mortgage market offers 2, 3, 5, and 10-year fixed-rate deals. The shorter the fixed rate period, the lower the promotional interest rate – and vice versa.

    Compare other types of mortgage

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    Last updated: 15 December, 2020