2 year fixed rate mortgage deals look more appealing.
How advisable are 2 year fixed rate mortgage deals in light of Bank of England base rate rise predictions?
Recently the likely date for the first BoE base rate rise was moved forward. While 2014/15 was previously the more generally accepted time for the first increase, recently this has been adjusted to 2016.
With predictions of 2014/15, 2 year fixed rate mortgage deals looked less appealing. Those looking for a deal were concerned at the prospect of fixing for 2 years only to come off their agreed rate just as the base rate was likely to rise pushing up mortgage rates.
With an increase in the base rate now not predicted for another 4 years, 2 year fixes are once again looking a good option. Lenders 2 year fixed rates are most often the cheapest deals on offer, generally the longer the fixed mortgage term the higher the rate. There are currently various competitive 2 year fixes on offer.
Recently released figures show 2 year fixed rates are the most commonly offered type of mortgage accounting for around a third of all deals currently available. Defaqto research reveals there are now around 830 2 year fixed mortgages on offer which is a 300 increase on the number offered 5 years ago.
It is argued that 2 year fixes are popular with both those looking for a cheap headline rate and those looking to move home in under 5 years.
If you are looking for a 2 year fixed rate mortgage you are recommended to contact Deal Direct, we will source for you the most competitive deal on offer.
