It is one of the most common questions landlords face at refinancing time — and one of the most consequential. The term you choose affects your monthly costs, your flexibility, and your exposure to whatever the Bank of England decides to do next.
After a sustained period at 5.25%, the Bank of England began cutting its base rate in August 2024 and had reduced it to 4.25% by mid-2025. Markets anticipate further reductions, but the pace is uncertain. Inflation has proved stubborn, and the MPC has surprised forecasters before. This transitional environment makes the two-versus-five decision genuinely complex.
A shorter term offers flexibility. If rates continue to fall, you will be able to refinance into cheaper money within two years. It also suits landlords whose circumstances may change — those planning to sell a property, expand their portfolio, or restructure between personal and limited company ownership. Early repayment charges on five-year products can be significant, and flexibility has real financial value.
Buy-to-let is a cash flow business. Knowing your mortgage cost for five years allows you to plan your rent strategy, manage your tax position, and run your portfolio with confidence. Five-year products also carry a structural advantage: lenders typically apply lower stress-test rates to longer fixes, which can unlock higher borrowing or better products that are simply unavailable on a two-year basis.
Experienced investors rarely apply one answer uniformly. Staggering mortgage expiry dates across a portfolio — some properties on two-year fixes, others on five — means you are never entirely exposed to one rate environment and always have refinancing opportunities in the pipeline. The right term for each property depends on its yield, its role in your wider strategy, and your plans for it over the next several years.
Nathan Lawes is an FCA-regulated whole-of-market mortgage broker (No. 1046161) working with landlords and property investors across the UK. Every case is handled personally.