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With the average three-year fixed-rate mortgage recently below both the two-year and five-year averages, we ask whether you should consider a three-year mortgage.
To help you decide, we’ve compiled the best three-year fixed-rate deals currently available and compared them to leading two and five-year options.
Below, we also highlight the factors to consider before choosing your next mortgage deal.
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Currently, there are 7,063 residential mortgages available, with 90% of them offering a fixed-rate.
The majority of these deals guarantee an interest rate for two or five years. We found that just 11% (875) of fixed-rate deals are available with a three year term.
The table shows which of the largest 15 mortgage lenders, according to UK Finance, offer three-year fixed-rate mortgages. Eight out of the 15 lenders offer these products, so there is a solid spread of providers to choose from.
| Barclays | No |
| Co-operative Bank | Yes |
| Coventry Building Society | Yes |
| Halifax | Yes |
| HSBC | No |
| Leeds Building Society | No |
| Lloyds | No |
Source: Moneyfacts 5 June 2025
Find out more: best mortgage lenders
At the start of June, the average three-year fixed mortgage rate fell to 5.04%. However, if you have at least 20% equity in your property, then there are plenty of sub-5% options and even a few below 4%.
In total, there are currently 10 sub-4% three-year fixed-rate mortgages available.
Skipton Building Society stands out with the best rates for first-time buyers. Those with a 10% deposit can achieve a rate of 4.67%, while buyers with a 5% deposit are offered 4.99%.
For customers remortgaging, only Nationwide Building Society and MPowered Mortgages offer sub-4% mortgages. These deals are reserved for those with a 60% loan-to-value (LTV). The table shows the top rates of three-year fixed-rate mortgages for remortgaging.
| 60% | MPowered Mortgages | n/a | 3.92% | £999 | 6.24% |
| 75% | RECOMMENDED PROVIDER First Direct | 75% | 4.15% | £490 | 6.74% |
| 85% | RECOMMENDED PROVIDER Skipton Building Society | 77% | 4.4% | £1,495 | 5.99% |
| 90% | Bank of Ireland | n/a | 4.76% | £999 | 6.49% |
Source: Moneyfacts 5 June 2025. Customer scores are based on a survey of 3,556 members of the public in August-September 2024 and combine overall satisfaction with likelihood to recommend the provider. The average customer score is 70%. To become a Which? Recommended Provider a lender must get a top customer score, consistently offer competitive deals and be fully covered by the Financial Conduct Authority banking standards regime. 'Revert rate' is the standard variable rate (SVR), which is the mortgage rate you'd be transferred onto when your deal ended if it remained unchanged between now and then.
Find out more: mortgage repayment calculator
Although the average three-year fix (5.04%) is now lower than both the average two-year (5.12%) and five-year (5.09%) rates, three-year mortgages currently have less competitive top deals.
Borrowers with higher LTV ratios are likely to find the best rates on five-year fixed deals. Meanwhile, for those with a 60% LTV, the difference between the top two-year and five-year fixed-rate offers is minimal.
| 60% | 3.84% - Halifax | 3.92% - Mpowered Mortgages | 3.86% - Barclays |
| 75% | 4.05% - Halifax | 4.15% - First Direct | 3.98% - Barclays |
| 85% | 4.37% - Halifax | 4.4% - Skipton Building Society | 4.29% - Virgin Money |
| 90% | 4.69% - West Brom Building Society | 4.76% - Bank of Ireland | 4.38% - Leek Building Society |
Data from Moneyfacts, correct as of 5 June 2025. Customer scores are based on a survey of 3,556 members of the public in August-September 2024 and combine overall satisfaction with likelihood to recommend the provider. The average customer score is 70%. To become a Which? Recommended Provider a lender must get a top customer score, consistently offer competitive deals and be fully covered by the Financial Conduct Authority banking standards regime. 'Revert rate' is the standard variable rate (SVR), which is the mortgage rate you'd be transferred onto when your deal ended if it remained unchanged between now and then.
Find out more: best mortgage deals
We spoke to Nicholas Mendes, from mortgage broker John Charcol, to understand whether consumers should consider a three-year mortgage.
In short, he believes 'they are not inherently the best or worst option; their suitability really depends on individual circumstances.'
When choosing your mortgage term, it's important to consider if significant life events are on the horizon. If they are, this may make a shorter mortgage term, with added flexibility, more attractive.
For example, if you think you may want to move soon then a shorter mortgage term could allow you to avoid early repayment charges.
It's also important to consider your attitude to risk. Nicholas Mendes, from John Charcol, describes fixed terms as 'essentially insurance against volatility'.
Therefore, a three-year fix provides a middle ground of when you can search for a new, and potentially cheaper, deal. Mendes points out that 'they appeal to borrowers who want more breathing room than a two-year deal offers, but do not feel ready to commit to a five-year term, particularly those who expect the market to improve by 2027.'
There’s also the matter of fees. We found that on average the top three-year fixed rate deals have lower arrangement fees than two or five-year terms. Mendes also notes that 'three-year fixes typically come with the lowest average arrangement fees across all three terms.'
Moneyfacts demand data shows that consumers favour shorter mortgage terms, with demand highest for two year fixed-rate mortgages.
When focusing on demand for those with 90% or 95% LTV demand for two-year fixes increases further.
Three-year fixed-rate mortgages are the third most in demand term length. Demand for this term length peaks for borrows with 95% LTV.
Mortgages aren't just offered with two, three and five year terms, you can also choose to fix your mortgage for a longer period of time.
There are 265 mortgage deals with fixed terms exceeding five years. These are grouped into seven, ten or fifteen year mortgages.
Seven-year fixed-rate mortgages are currently available from just three lenders.
At present, the deals are offered by Bank of Ireland, Newcastle Building Society, and Vida Home Loans. Bank of Ireland leads the pack with the most competitive rates, 4.7% for borrowers with 85% LTV. This increases to 4.89% for those with 90% LTV.
Virgin Money has previously offered this product in the past, but doesn't currently offer a seven-year fix.
Deals that fix your rate for a decade are available from 10 mortgage providers. Major providers offering these deals include Barclays, Halifax, Lloyds, Santander, Virgin Money and Yorkshire Building Society.
Nationwide offers the market leading rate of 4.39%. However, those with higher LTV ratios will find the cheapest deal, also from Nationwide, is 4.99%.
April Mortgages is currently the only lender offering fixed-rate mortgages with terms of 15 years. While these deals provide certainty and stability over a long period, this comes at a price. Rates for these mortgages range from 5.6% to 6.53%, depending on the LTV ratio.
In terms of fees, April Mortgages sits in the mid-range. Each 15-year deal comes with a £995 completion fee and a £195 booking fee.
Find out more: mortgage types explained
