01/10/2026
🏠 Are UK borrowers chasing a mirage with the 2-year fix?
For years, many borrowers have chosen shorter fixed-rate mortgages hoping that rates will be significantly lower by the time they need to remortgage.
But what if that expectation is based more on the ultra-low-rate era we became used to than on where borrowing costs are actually heading?
In his latest blog, Nicholas Mendes looks at how the UK mortgage market compares with the US and Europe, why longer term fixed rates remain relatively uncommon here, and whether borrowers should be thinking differently about certainty versus flexibility.
Two year fixes certainly aren’t the wrong choice for everyone. But choosing one purely because you expect much cheaper rates in two years’ time is still a gamble.
💡 The key is to consider how long you want certainty for, how much flexibility you need and what happens if rates are no lower when your current deal ends.
Read the full blog here: https://www.charcol.co.uk/blog/are-uk-borrowers-chasing-a-mirage-with-the-2-year-fix/
For almost 13 years, from March 2009 to December 2021, Bank Rate averaged just 0.45%. For the decade before the financial crisis, from Bank of England independence in May 1997 to October 2008, it averaged 5.16%. At 3.75% today, Bank Rate sits below its pre-crisis norm, yet a generation of borrowers....
