Fixed-rate mortgages pitch low

fixed-mortgage-pitch-lowTwo, three and five-year fixed rate mortgages have thrust to new lows in spite of assumption of a base rate rise next year. Comparisons are being made by experts, from which the data shows, most number of homeowners are considering to fix now before rates start to increase. It also shows the growth of 10 year fixed deals.

The average rate for a five-year fixed is currently 3.45%, while last year it was 4.06%, and in last year it was 4.67%. Similarly the 2-year and 3-year mortgage deals have followed the same pattern; with the average two-year fixed mortgage rate is now 2.90%, whereas it was 4.48% in previous year and the average three-year fixed rate now 3.21%, compared to 4.80% in last year. The mortgage arrangement fees have fallen over the last five years, especially for five-year fixes, making it even cheaper.The total number of 10 year fixed products was 35 last month which now is increased to 41.

Expert says: “Mortgage lenders reducing their rates again after hiking them over the last couple of months. Even though the Bank of England base rate hasn’t risen yet, it’s still a case, so any homeowners looking for a cheaper deal should take advantage of the current low rates. Many lenders are now allowing mortgage holders to reserve rates available now for up to six months for a small fee, so even those who still have some time left on their current deal can get benefitted.”

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