Three-year fixed mortgage deals offer borrowers a more ideal balance between cost, flexibility, and certainty over the loan term than traditional two or five-year promotional rates. Five-year deals, with their early repayment penalties, lock borrowers in for longer than many would like. Two-year deals are most affordable, but the allure of lower monthly repayments is offset by the need to refinance sooner. For many borrowers, the three-year deal is just right, especially with its reduced frequency of remortgaging, whose costs can really add up.
