In mortgage advice, few decisions are as routine, or as consequential as recommending a fixed rate term.
In recent history, the short-term fix has been the default choice for many advisers. It’s familiar, it’s often the cheapest on the rate sheet, and it offers a neat, short-term solution. But here’s the uncomfortable truth: every time you recommend a short-term fix without considering the client's risk appetite and ability to absorb potential future rate shocks, you’re making a call on your client’s future.
At best, you’re betting with their money, at worst, with their home. That might sound provocative, but it’s worth unpacking. A mortgage fixed period isn’t just a product, it’s a view on what happens next, and the risk appetite of the client. Going short may well be the best advice for someone with ample cashflow to absorb future rate shocks and a solid plan B if the market doesn’t go in their favour – but for those who don’t have that luxury, can leave them very exposed to a volatile market.
Let’s be honest: no one can predict the future, particularly when it comes to interest rates. Not central banks, not economists, not even the most seasoned market analysts. Rates are shaped by a tangle of global events, political shifts, inflationary pressures, and market sentiment. Yet when we recommend a short-term fix without considering the risk appetite of the client, we’re effectively saying, “Don’t worry, we’ll deal with that later.”
That’s not advice. That’s speculation.
In the many other areas of finance, this level of uncertainty would be unacceptable. Imagine a financial planner advising a client to invest their life savings in a product that matures in two years, with no clear exit plan and full exposure to market swings. They’d be challenged immediately, not just by compliance, but by their own professional standards.
Partly, it’s habit. Short-term fixes are easy to sell. They look cheap, they show well on sourcing, and are simple to explain. But low rates don’t always mean low risk. They can simply defer the problem. When the fix ends, clients face an unknown rate environment, new affordability tests, and remortgaging costs. And if rates have risen sharply, the payment shock can be brutal.
Do clients understand that? Do they realise their mortgage strategy depends on economic conditions no one can reliably predict? Or are they being reassured by the short-term appeal of a low cheap rate?
Great advice isn’t just about chasing the cheapest deal, comparison sites do that, it’s about helping clients understand the trade-offs and how much risk they’re genuinely comfortable taking on. At April, we passionately sit on the side of advice. We’ll continue to champion advisers’ role in helping clients make informed decisions that reflect their goals, circumstances and tolerance for risk.
That might mean looking beyond the short-term norm, considering five, ten or fifteen-year fixes for clients who value stability. What matters most is that the choice is intentional, not habitual.
And here’s where it gets interesting. The old trade-off between certainty and flexibility isn’t as rigid as it once was. Innovation in the mortgage market is changing that. Today, modern longer-term fixed rates can come with built-in flexibility, such as automatic rate reductions as LTV improves, unlimited overpayments, or the ability to move home without ERCs. In other words, clients can now have both security and freedom.
Advisers benefit too. Newer models mean advisers can now earn multiple procurement fees across the fixed term, rather than being penalised for helping clients into longer-term stability.
This is a game-changer for advisers committed to real advice, not just ticking criteria boxes. It allows clients genuine stability without sacrificing adaptability. It reduces the cycle of remortgaging, the cost, and the stress. And it elevates mortgage advice to the same strategic level as investment advice.
But to get there, we have to challenge our own habits. Stop defaulting to the two-year fix as the “safe” choice. Question whether the recommendation truly serves the client’s best interests, and their own attitude to risk, not just today but over the life of their mortgage. Educate clients on what’s known, what’s not, and what that uncertainty could cost.
This isn’t about condemning short-term fixes. They have their place for clients with shorter horizons, plans to move, or the financial flexibility to handle rate fluctuations. But they shouldn’t be the automatic answer. Because when we treat them as the norm, we’re not simplifying advice, we’re oversimplifying the client’s future.
So next time you reach for that two-year fix, pause. Ask yourself: am I advising, or predicting the future? Would I make the same recommendation if the client were investing £300,000 in the stock market? If not, why is it acceptable for their family home?
Because if we’re not careful, we’re not just advising. We’re gambling. And the stakes couldn’t be higher.
