Fixed rate mortgages are the most popular choice for UK borrowers.

Over 85% of home-owners choose a fixed rate deal when buying a home or remortgaging.

The most popular terms are for 2 and 5 years and the length of term chosen reflects the different needs of home-owners.

A large percentage of home-owners choose a 2 year fix because the rate offered is cheaper than a longer term deal. In addition a short term offers more opportunity to remortgage to follow market trends. This is very useful if the trend is for falling rates, but less so if your 2 year term comes to an end as interest rates are rising.

With a 5 year fix you will find that the price of extra mortgage and financial security is a higher rate. If you want longer term security then be prepared to pay more for your deal, however if rates do rise you'll be protected.

With both mortgage terms there are pros and cons.

With a 2 year fix you need to accept the fact that being able to more frequently remortgage comes with a risk, which is you could end up paying more after just 2 years if rates rise when your deal comes to an end. However on the upside rates could be falling and you may end up paying less.

With a 5 year fix you don't have to worry about finding a new mortgage for longer. However if you do have a 5 year deal and rates fall after the first couple of years, you won't be able to take advantage of a cheaper deal unless you either have no early redemption clause or you are willing to pay a penalty to switch early.

If you would like advice as to what deals are on offer and which would be best suited your financial needs, call Deal Direct on 0800 633 5730 and speak to an adviser.

Call today for independent advice and a low rate quote.

0800 048 8828.