Borrowers have good reason to fix the best mortgage rates now.
The best mortgage rates currently on offer are at historically low levels, but as lenders face increasing funding costs now could be the time to fix. Lenders mortgage arrangement fees have already significantly risen over a 12 month period and mortgage rates are predicted to follow suit.
By fixing longer term deals with the best mortgage rates available, borrowers will save on extra mortgage arrangement and switching fees. Locking into a 5 year fixed deal requires borrowers to pay only one mortgage arrangement fee, as opposed to borrowers who switch every couple of years who will need to pay multiple fees.
Deal Direct can help you get the best fixed rate mortgage deal available in the UK today.
Mortgage fees have risen by 70 per cent in the last year to around £1,400 per deal, which makes repeated deal switching less viable. Borrowers need to factor in these costs when calculating the cost effectiveness of a move.
As the BOE base rate rises, borrowers who accept a variable rate now are likely to want to make a switch to a more secure fixed rate, this move will of course incur a fee.
Some lenders are currently offering 5 year deals with the best mortgage rates fixed at around 3.5 per cent which does not seem such a large premium for borrowers wanting payment security. Most borrowers want a mortgage they can forget about once the deal is done.
A fixed rate is perfect for those who do not want to keep an eye on interest rate movements and who want insurance against monthly repayments increases.
