2 year fixed rate mortgage competition heats up.
In summer lenders competed to offer the lowest 5 year fixed rate, and now 2 year fixed rate mortgage deals are falling in price as lenders once again compete for business.
It seems the funding for lending scheme is encouraging competition, and fixed rate mortgages continue to fall in price
If you are looking for a cheap longer term fix, there are currently plenty of deals to choose from. Rates are far more compeititive at the larger deposit end, however some lenders such as Virgin are starting to cut their rates for those with a smaller deposit.
Virgin Money has a 2 year fixed first time buyer deal for 90% LTV at 4.99%, which is a 0.90% reduction on its previous offer.
There are currently various deals on offer for under 3%. Various large high-street lenders have deals close to 2%, such as HSBC who offer 1.99% for 60% LTV, with this deal fees are high at £1,999.
A market-wide mortgage comparison through Deal Direct might reveal a cheaper overall offer. For instance even the smaller building societies are getting more competitive. The Cumberland are offering a rate of 2.78% for 60% LTV with a £999 fee.
Fees are an important part of the overall competitiveness of any deal, therefore it is advisable to contact an expert to help you work out which mortgage to choose. A low rate that comes with a high fee may not represent the best deal for you.
To ensure you get the best mortgage deal you need to compare the whole of the market, so call Deal Direct to make a review on your behalf.
Call an adviser today.
