Compare 2 Year Fixed Rate Mortgages

Two-year fixed-rate mortgages allow borrowers to make monthly repayments on their mortgage, at a fixed rate of interest for a term of two years. This helps keep a lid on interest payments to be made.

Yes, especially as new home buyers might be keen to avoid having to pay fluctuating sums of interest on their mortgage, as would be the case with a variable-rate mortgage product.

As fixing rates for longer entails greater risk to a lender over time, they would be inclined to charge a higher rate of interest over a five-year fixed term as compared to a two-year fixed term. Use NerdWallet’s comparison tables to determine which product best suits your requirements.

You might wish to make prior arrangements to have a new fixed rate before the current one expires. If no arrangement is made, you would transition onto your provider’s Standard Variable Rate. Please note that this would result in interest payments rising substantially.

Some mortgages allow borrowers to pay just interest on a monthly basis, with the mortgage loan outstanding, to be paid off in full when the term ends. Again, these kinds of products are suitable for those wishing to keep costs to a minimum.

Loan-to-value (LTV) is a ratio measuring the proportion of a new property’s value that a provider is willing to offer in the form of the mortgage loan. If your provider offered you a mortgage with an LTV of 80%, you would have to repay the remaining 20% upfront as a deposit.

They can be, despite the fact that you’ve got a smaller deposit to save up for at the start. This is because a high LTV entails greater risk to your provider. As a way of mitigating this risk, the provider will opt to charge a higher rate of interest than they would on a lower-LTV mortgage.

Early repayment should be possible with many providers, but please check terms and conditions to see whether they have any Early Repayment Charges. These are often used as a means of dissuading borrowers from paying back too soon, so costs need to be considered carefully.

Make sure to provide some form of identification, as well as documents such as bank statements, payslips and information about existing debts on your balance sheet. All this information helps your provider build up an accurate picture of your financial situation.

Not necessarily, but because low credit scores denote high risk for a provider, some might be inclined to refuse an application for a mortgage. Not only that, but those who are open to providing you with a mortgage might also decide to charge a higher rate of interest to reduce risk.