Longer term fixed rate mortgage deals become cheaper.
Longer term fixed rate mortgage deals offer a level of security for risk averse borrowers.
The cost of such products has always been higher because security comes at a cost. However recent reports suggest longer term rates are starting to get a little cheaper.
In the UK home-owners have tended to prefer short term fixed rate mortgage products, because they require less commitment and offer a greater degree of flexibility.
In the last few years 2 year fixed deals have increased in number. According to Defaqto 30% of all mortgages now on offer are 2 year fixes which shows how keen lenders are to promote such products.
When N & P released their competitively priced 10 year fix at 3.99% back in February this year, there was great surprise among many in the industry that it proved popular. In fact so popular that it sold out and was fully subscribed in just 2 weeks.
With mortgage rates on the increase and lenders arrangement fees increasing, longer term fixes such as those for a 5 year term are becoming increasingly interesting to home-owners looking to avoid rising costs.
According to Moneyfacts, average 5 year fixed mortgage rates have decreased over the last 12 months going from 5.59% to 4.86%. The drop is being attributed to a fall in 5 year swap rates which have reduced by 1.20% in the last year
If you are looking for the most competitive fixed rate mortgage deals on offer contact Deal Direct.
Deal Direct will search the market to find you the most suitable deal available.
