Remortgage now as we are about to kiss goodbye to cheap 5 year fixed rates.

Cheap 5 year fixed rates maybe about to come to an end as lenders begin to hike their rates. Already we have seen rate increases on longer term fixes from lenders such as the TSB. It is only a matter of time before other lenders follow suit.

For several months lenders have cut rates week after week to attract new business, however predictions of a base rate increase means this situation is ending.

Over the past few weeks rates have begun to creep up with average 5 year fixed rates for 60% LTV rising from 1.99% in May this year to 2.29% now.

Rising costs are the result of rising wholesale pricing. Competition between lenders remains fierce, but a predicted base rate increase is pushing up the price at which banks borrow money. As their costs increase they have no choice but to pass these costs on to borrowers in the form of rising rates.

We are seeing 5 year rates particularly affected by these rising costs. At present rates are still very low when compared to 5 years ago, and there is still time to bag a competitive deal if you start looking now.

With rates on the up now is the time to consider your options. If the base rate rises in the next few months it could pay you to lock into a cheap 5 year fix now while you can.

If you are on your lender's SVR or are coming to the end of a fixed term, you are advised not to delay as you could save yourself money over the long term by locking in now.

If you would like to remortgage and want to find out what deals are available at your equity level call us at Deal Direct today.

We are the UK's number one remortgage broker. Our impartial advisers offer independent advice and can source you a competitive remortgage from the entire market.

For impartial advice and a competitive quote, call us today on 0800 048 8828.