So variable, not fixed. Fixed means fixed over the term of the loan. As soon as you recalculate interest rates, it is not longer fixed by any definition.
Nothing wrong with variable rates in certain circumstances but you can't call a 5/5 ARM fixed.
“More than 1.4 million households in the UK are facing the prospect of interest rate rises when they renew their fixed rate mortgages in 2023.
“The majority of fixed rate mortgages in the UK (57%) coming up for renewal in 2023 were fixed at interest rates below 2%. Those deals that are due to mature through the course of 2024 will be from two-year fixed rate deals made in 2022 and five-year fixed rate deals made in 2019, when mortgage rates were generally higher than 2%.”
To be clear, the rate is fixed during the term of the mortgage (say 5 years) but the amortization period is different (say 25 years).
Yet another reminder how challenging cross-cultural communication can be. There is no right or wrong here, just different. They key is recognizing the differences as early as possible to avoid confusion.
The terminology, unfortunately, varies with country. Your terminology is correct for America but in most of the world, "fixed" has a different meaning, because American-style fixed products are nonexistent.
Nothing wrong with variable rates in certain circumstances but you can't call a 5/5 ARM fixed.