The best fixed rate mortgage deals are bucking the price increase trend.
As lenders are now offering more of the best fixed rate mortgage deals than a year ago, borrowers can be reassured that a good deal is currently still available.
According to the FT Money analysis of lenders best buy deals, a borrower needing a £300,000 mortgage will now be able to fix at a significantly lower rate then they could have at the same time last year. Despite reports of mortgages becoming more expensive, borrowers will still find that the best fixed rate mortgage deals are offered at cheap rates.
A best buy 2 year fixed rate mortgage is currently offered by the HSBC at 2.28 per cent, which is over half a per cent cheaper than the equivalent deal 12 months ago, 5 year fixed rate mortgage deals have also fallen in cost. First Direct has a low rate deal at 3.28 per cent which is 0.71 per cent lower that last year’s market leader from Accord at 3.99 per cent.
The best fixed rate mortgage deals have fallen in cost largely due to the fact that the market expectation is for interest rates to remain low for the next few years. Five year swap rates which lenders use to price fixed rate mortgages, fell from 2.1 per cent in August last year to 1.6 per cent in January this year. However, not all lenders are cutting their fixed rates, the cost of a lifetime tracker has increased compared to a year ago.
