Why Long Fixes Are Back in the Spotlight

For years, two- and five-year fixed rates dominated the UK mortgage market. Borrowers liked the flexibility, and shorter terms often came with lower rates. But in 2025, the conversation has shifted.

After several years of volatility — sharp rate changes, inflation pressure, and frequent lender repricing — borrowers are once again prioritising stability. The appeal of locking in a rate for seven or even ten years has grown, especially for those seeking to remove uncertainty from long-term financial planning.

The renewed interest in long-term fixes isn’t just emotional. It’s structural. The shape of the yield curve — the market’s measure of future funding costs — has flattened. That means the cost difference between a five-year and a ten-year fix has narrowed, prompting many to ask: if the price gap is small, is a long fix the smarter option?

How Lenders Price Long-Term Fixes

Longer-term fixed products are linked to seven- and ten-year swap rates — benchmarks that reflect the cost to lenders of fixing their own borrowing for those periods.

When those swap rates are only marginally higher than shorter-term equivalents, lenders can offer long-term mortgages at competitive prices. This is what’s happening in 2025: five-year and ten-year swap spreads are unusually tight, leading to some long fixes being priced only 0.20–0.30% higher than five-year deals.

In short, lenders are not charging much extra for the added certainty. For borrowers who value predictability, that’s an appealing trade-off.

For background on how swap rates shape pricing, see How Lenders’ Swap Rates Set Tomorrow’s Pricing.

When a Long Fix Can Make Sense

A long fix is designed to remove one big variable from your financial life: interest rate risk. It offers peace of mind that your monthly payment will not rise for the duration of the term. That makes it particularly relevant in certain scenarios.

It can make sense if:

• You intend to keep the property for the majority of the term and do not plan to move or redeem early.
• You have a stable long-term income and value predictable outgoings.
• You want to avoid remortgaging during periods of economic or political volatility.
• You expect inflation or market rates to rise again in the medium term.

For buy-to-let investors, long fixes can also provide stability in debt service coverage ratios (DSCR), helping maintain compliance with stricter lender affordability tests, especially as rental yields fluctuate.

When It Might Not Be the Right Choice

A long-term fix comes with trade-offs, and borrowers should weigh them carefully.

It may be less suitable if:

• You plan to move home or sell within the next few years.
• You want to retain flexibility to refinance if rates fall.
• You expect to make large overpayments or repay early.
• You’re uncertain about staying in the same property or country for the long term.

While some lenders now include porting options and partial repayment allowances, Early Repayment Charges (ERCs) can still be significant on long fixes. It’s important to understand how these are calculated and how long they apply before committing.

The True Cost of Certainty

One of the misconceptions around long fixes is that they’re “too expensive.” But when comparing total costs over a full decade, the difference can narrow — especially once fees, remortgaging costs, and rate risk are factored in.

A borrower taking two consecutive five-year deals will likely pay:

• Two sets of legal and valuation costs,
• Two rounds of product and broker fees,
• And possibly face higher future rates if markets turn unfavourable.

In comparison, a single ten-year fix avoids those costs and eliminates exposure to mid-cycle volatility. The key is to evaluate total cost of ownership, not just the starting rate.

For a practical breakdown of product-switching economics, see Product Transfer vs. Full Remortgage: Which Actually Saves More in 2025?.

Modern Long Fixes: More Flexible Than Before

Older long-term mortgage products often tied borrowers down rigidly. But the 2025 versions have evolved. Many lenders now offer:

• Portability — allowing you to take the rate to a new property.
• Overpayment allowances — often up to 10% of the balance per year without penalty.
• ERCs that taper — reducing gradually as you progress through the term.

Some private banks even design structured long fixes with optional mid-term review points or break clauses, blending long-term stability with future optionality.

That evolution makes modern long fixes more accessible and less restrictive — provided borrowers understand the conditions attached.

Long Fixes as an Inflation Hedge

Locking in a fixed mortgage rate for a decade can act as a hedge against inflation.

If general price levels and wages rise over time while your repayments stay constant, the real value of your debt effectively falls.

This dynamic has led many financially cautious borrowers to view long-term debt not just as a protection from volatility, but as a strategic component of long-term wealth planning — particularly in an environment where inflation risks remain unpredictable.

Balancing Stability and Flexibility

Choosing between a five- or ten-year fix ultimately comes down to priorities.

If you want the lowest possible rate and value optionality, shorter terms or trackers may still be preferable. If you value predictability, budgeting consistency, and the comfort of being insulated from future market swings, a long fix can make strong sense.

The goal isn’t to predict the perfect rate environment — it’s to build financial resilience around your lifestyle, time horizon, and tolerance for change.

Frequently Asked Questions

Are long fixes really better value now?
They can be. The yield curve is unusually flat in 2025, meaning 10-year fixes are only slightly higher than 5-year products — offering cost-effective security.

Do long fixes carry higher Early Repayment Charges?
Typically yes, but modern versions often taper ERCs over time and allow annual overpayments without penalty.

Can I move home on a 10-year fix?
Many lenders now allow porting, meaning you can transfer your existing deal to a new property.

Is there a risk to fixing long-term if rates fall?
Yes. You may miss future rate reductions, but you gain certainty and protection from potential rate rises.

Who benefits most from long fixes?
Borrowers planning long-term ownership, investors seeking stability, and anyone prioritising predictable repayments over short-term speculation.

📞 Want Help Navigating Today’s Market?

Book a free strategy call with one of our mortgage specialists.

We’ll help you assess whether a long fix makes sense for your goals — or if flexibility is worth more than certainty.