Both two and five-year fixed-rate mortgages got cheaper in 2019, meaning there's a whole host of great offers out there for buyers and remortgagers as we enter the new year.
But which type of deal should you choose?
Here, Which? takes a look at the things you'll need to consider when choosing a mortgage term and explains which banks are offering the best rates right now.
Indeed, data from Moneyfacts shows there are currently 2,537 two-year fixes and 2,437 five-year fixes on the market.
The start of the year tends to be most popular with existing homeowners looking to switch to a cheaper deal.
Data from UK Finance shows that nearly 47,000 people remortgaged in January last year - more than any other month in 2019.
Average rates offer us a guide to which way the market is moving, and right now both two and five-year fixed-rate deals are getting cheaper.
Longer-term fixes have seen the biggest falls over the past 12 months. The average two-year rate fell by 0.08% in 2019, while the average five-year rate dropped by 0.2%.
Fierce competition in this market resulted in the average gap in cost between a two and five-year deal dropping to just 0.3%. To put this in context, the gap was 0.42% a year ago and 0.52% in January 2018.
With a Brexit resolution now on the cards, we may see more borrowers opt for riskier short-term fixes, and it seems unlikely that the gap will shorten too much further in 2020.
Average rates provide a useful gauge of the market, but you're probably wondering where you can find the cheapest deal.
In the interactive chart below, we've collated the cheapest initial rates on two and five-year fixes at six popular LTV levels.
Right now, the cheapest two-year fix is priced at just 1.14%, and the cheapest five-year deal is at 1.44%. Both are available from Halifax at 60% LTV.
To see the best rates and which banks are offering them, simply hover your cursor over the bars in the chart below.
The best mortgage term for you depends on your personal circumstances and your attitude to risk. Let's take a look at some of the pros and cons of two and five-year deals:
Two-year fixes are the cheapest deals, with sub-2% rates available right up to 90% loan-to-value.
They also give you the freedom to negotiate a new deal after as little as 18 months, meaning you can always stay on top of your mortgage rate.
Suitable for:Borrowers who want to stay on top of their finances and ensure they're on the best rate, or those considering moving in the near future.
Five-year fixes are attractively priced and offer rate security for much longer than two-year deals, allowing you to 'set and forget' your mortgage and have control over your long-term payments.
The biggest downside is that they tend to come with high early repayment charges of up to 5%, so you could face a significant penalty if you want to move home during the deal period.
Suitable for:Borrowers wanting long-term rate security who aren't planning on moving home in the medium term.
While two and five-year deals make up the vast majority of the market, it's possible to fix for a range of other terms.
Three-year and 10-year deals are the most common alternatives, although there's relatively little competition between lenders (especially at 90% LTV or above), so you might struggle to find a truly attractive rate.
Rates are important, but so too is quality of service, especially if something goes wrong.
In June 2019, we conducted the latest version of our annual mortgage customer satisfaction survey, and awarded coveted Which? Recommended Provider status to three lenders.