Mortgage rates on 5 year fixed terms – seen as incredible value.
Mid February saw several lenders launch new mortgage rates on a 5 year fixed term, including one deal that allows borrowers to make the most of lower rates while offering the security of a future fixed term rate.
First of the products comes from Barclays with Woolwich mortgage deals that have been created to offer new mortgage rates on a 5 year fixed tracker. This new deal offers a tracker rate for the first 2 years after which borrowers are switched to a fixed rate product for the last 3 years. Hybrid deals of this type are becoming increasingly popular with borrowers wanting tracker rate benefits while the BOE base rate is low, switching to the security of a competitive future fixed rate deal. Previously hybrid deals had been offered only by the Yorkshire Building Society and sister brands.
Mortgage market experts are advising that while these new lender deals are attractive, there are some even more competitive lender rates available at the moment. For those home buyers looking for a mortgage up to and including £241,000, the Britannia Building Society and Co-op, offer new mortgage rates on a 5 year fixed basis at 3.39 per cent for up to 75 per cent loan to value with no product fee charged. For those borrowers who want mortgage deals above £241,000 then the Chelsea have a five year fixed deal at 3.19 per cent which is considered as a better option despite the fact that it comes with fees of £1,495.
