Are fixed rate mortgage deals getting cheaper?
The news is fixed rate mortgage deals appear to be getting cheaper despite some lenders announcing rate increases on some of their mortgage products.
New figures suggest that 5 year fixed mortgage rates recently fell to their lowest in two years. In fact figures reveal that a 5 year fixed rate mortgage has decreased in the last 12 months dropping from 5.59% to 4.86%. Rate decreases on 5 year fixed products may be of interest to those mortgage-holders whose lender's SVR is to increase from 01 May.
Fixed rate mortgages are often reassuring to risk averse mortgage holders, who want to know that their monthly payment cannot and will not increase during the term agreed. Such reassurance is often invaluable during difficult economic times.
For those requiring a level of certainty a 5 year fixed rate mortgage makes sense. A 5 year fix offers longer security as if rates do rise in the next couple of years you will be protected from increased costs.
Low mortgage rates are not going to last forever, some lenders are already increasing their rates for new borrowers. Deal Direct recommend that those of you who are looking to remortgage or purchase a new home, but are worried as to what the market might do, fix a cheap 5 year fixed rate now.
Through Deal Direct those with a 20 per cent deposit or equity should be able to fix for 5 years at 4 per cent or less, which is positive news. Contact Deal Direct today and let us source a great fixed rate mortgage for you.
