Average fixed mortgage rates remain at record lows but for how long?
Average fixed mortgage rates have fallen to below 4% for a 5 year fixed rate mortgage, the average 5 year fix is now 3.96% which is a drop from 4.86%.
For those wanting a shorter term deal, average 2 year fixed mortgage rates are 3.82% which is down from 4.66%.
These average fixed rates are at their lowest level since records began in 2007. The cheapest deal that you can achieve for a 2 year fix is 1.64% from the Chelsea BS and for a 5 year fix the lowest rate is 2.44% from the Yorkshire BS.
Rates this low proves it still remains possible to get a really good deal if you know where to look.
With rates at their lowest for years, you are advised to get a move on if you are looking for a fixed rate deal because rates are likely to increase over the coming months.
Lenders funding costs are likely to increase as swap rates are rising. While mortgage lenders may absorb funding cost increases for a period of time, eventually borrowers will be charged higher rates.
Currently it is thought low rates could last around another 6 months but by the start of next year a new mortgage could cost far more.
The advice is therefore search for a cheap deal while you can by contacting Deal Direct on 0800 048 8828.
Call an adviser today for a low rate quote.
