2 year fixed-rate mortgages

With a 2 year fixed-rate mortgage from Lloyds, your interest rate stays the same for 2 years. This could help make monthly budgeting feel simpler, while keeping your future mortgage options open.

Find a 2 year fixed-rate deal

Why choose a 2 year fixed rate?

Shorter term stability

A 2 year fixed-rate mortgage keeps your interest rate the same for 2 years. This could make it easier to budget for your monthly payments. But it still gives you a chance to review your finances when the fixed term ends.

Flexibility to switch after 2 years

A 2 year deal might suit those who want to review or switch their mortgage deal sooner. This could be helpful if interest rates are higher or your financial circumstances might change in the near future. 

Might offer lower interest rates

In some cases, 2 year fixed-rate mortgages have lower interest rates than longer fixed terms. This could make them more appealing to borrowers looking to keep their monthly costs down.

Borrow up to 95%

If you’re looking to buy a home, some 2 year fixed-rate mortgages are offered with as little as a 5% deposit. Just keep in mind that you might be able to get a better rate if you can afford to put down a bigger deposit.

If you’re looking to remortgage, Lloyds only lend up to 90% loan-to-value (LTV). 

Things to consider

Your loan-to-value (LTV) ratio

Your loan-to-value (LTV) ratio compares your mortgage amount against the property’s value. A higher LTV could mean higher interest rates on a 2 year fixed deal, while a lower LTV could unlock better rates.

Rate is secured for a shorter period

Fixing for 2 years means you’ll need to review your mortgage sooner. If rates increase after your term ends, you might end up having to move to a higher rate at the end of your deal. This switch could lead to higher monthly payments.

You could miss out if interest rates drop

On the other hand, if interest rates fall during your fixed period, your mortgage rate won’t change. This means you could miss out on potential reductions during your 2 year term. If you decide to leave your deal early, you might have to pay an early repayment charge (ERC).

Product fees

Some fixed-rate mortgages come with a product fee. Mortgages with product fees usually have a lower interest rate than those without. If you choose a 2 year mortgage with product fees, your fixed rate will end sooner than a 5 year deal, so you may also pay another product fee sooner.

Should I choose a 5 year or 2 year fixed rate?

Whether a 2 year or 5 year fixed deal is right for you depends on your circumstances. If you’d like a bit more flexibility and don’t want to be locked into a rate for too long, then a 2 year fixed-rate mortgage could work for you. 

But if you’d prefer to know what you’re paying for a longer period, then you might want to apply for a 5 year fixed rate. 

When deciding, think about:

  • whether you might want to change your deal in the next 5 years
  • if you intend on moving home
  • how long you’d like to have a fixed mortgage rate for.

Learn more about our 5 year fixed mortgages.

Ready to apply?

Use the mortgage calculator

Use the mortgage calculator to work out how much you could borrow and what your repayments might be with a 2 year fixed-rate mortgage.

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Apply for an AIP

If you’re happy with the maths, you can apply for an agreement in principle (AIP). This could give you a better idea of how much we could lend you.

Apply for an AIP Opens in same tab

Use the mortgage calculator

Use the mortgage calculator to work out how much you could borrow and what your repayments might be with a 2 year fixed-rate mortgage.

Mortgage calculators Opens in same tab

Apply for an AIP

If you’re happy with the maths, you can apply for an agreement in principle (AIP). This could give you a better idea of how much we could lend you.

Apply for an AIP Opens in same tab

You could lose your home if you don’t keep up your mortgage repayments

Let’s look at the details

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Remortgaging to us

Find out about our improved remortgage rates if you’ve got a mortgage with another lender.

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How to apply

We can help you find and apply for the right mortgage.

How to apply for a mortgage

Types of mortgages

Brush up on the different types of mortgages available from Lloyds to find the one that works best for you.

Mortgage types 

Types of mortgages

Brush up on the different types of mortgages available from Lloyds to find the one that works best for you.

Mortgage types 

Important legal information

New Lloyds mortgages are provided by Bank of Scotland plc. Lloyds Bank plc and Bank of Scotland plc are both part of Lloyds Banking Group.