Five-year fixed rate mortgages have dropped to the lowest rates on record, handing a boost to people wanting to get a competitive deal, whether remortgaging or buying a home. This comes after rates on some two-year fixes dropped below 1% recently for the first time since 2017.
More products available
According to Moneyfacts1 there were around 800 five-year fixed rate remortgage products available in early to mid-July. In an example of how competitive mortgage rates currently are, borrowers with a deposit of 20% deposit can expect to secure a two or five-year deal with a rate under 2%.
Will it last?
While the BoE kept bank rates low throughout the pandemic, it is only now that the lower rates are being passed on to borrowers. Many mortgage market experts feel that interest rates are unlikely to go any lower, and that borrowers are soon to see the tide turn in the form of rate increases. If you’re interested in taking advantage of current low rates to fix your mortgage, don’t hesitate to get in touch to see how we can help. Moving to a fixed rate could potentially save you money as well as giving you the peace of mind in knowing what your mortgage payments will be for the term of the fixed rate.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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(Your home may be repossessed if you do not keep up repayments on your mortgage)
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