Why Does a 2-Year Fixed Rate Mortgage Sometimes Last More Than 2 Years?
Catherine Alexander
Mortgage & Protection Adviser at GDA
When you take out a 2-year fixed rate mortgage, it means your interest rate is fixed for around two years — but the actual fixed period might be slightly longer than 24 months. There are a number of reasons this can happen:
🔹 1. The Start Date Depends on Completion
The fixed rate begins on the day your mortgage completes, not when you apply. If your completion is delayed, the fixed period starts later too.
🔹 2. Lenders Use Calendar Dates
Many lenders set the fixed rate to end on a specific day of the month (e.g. the last day of the month), not exactly 24 months later. This can add a few extra days or weeks.
🔹 3. Marketing Simplicity
“2-year fixed” is a simplified label. The actual fixed period might be 25 or 26 months, depending on how the lender structures the product.
🔹 4. Early Repayment Charges (ERCs)
ERCs usually apply until the end of the fixed rate period, so knowing the exact end date is important if you plan to switch or repay early.
When you get your mortgage offer it will tell you the exact date that your fixed rate will end. You can then set a reminder a few months before it ends to explore your remortgage options.
This article isn’t personal advice. If you’re not sure whether a course of action is right for you, ask for financial advice. Your home may be repossessed if you do not keep up repayments on your mortgage.
