Battle for the best mortgage rates on a 5 year fixed term.
There is a battle between lenders as to who offers the best mortgage rates on a 5 year fixed term. Lenders are trying to improve their offerings despite fears of a second recession and at present a 5 year fixed rate mortgage can be found as low as 3.19 per cent.
The current leader of the race for the best mortgage rates on a 5 year fixed term, is the Chelsea Building Society. The lender recently launched a new 3.19 per cent deal which is being seen as a challenge to other lenders to come up with more competitive mortgage deals.
The Chelsea deal is for all home-buyers but will only be available to those fortunate enough to have a 30% deposit, as the deal is for 70 per cent LTV. Borrowers should be aware that while the headline rate is low, the loan comes with a £1,495 product fee. The next runner in the race is First Direct who are offering a 3.28 per cent deal also at 70 per LTV, their mortgage however comes with higher fee of £1,999.
Generally a low rate and large fee combination is worthwhile for those borrowers wanting to arrange a higher value mortgage. Andrew Hagger, of finance website Moneynet.co.uk analysed all of the best mortgage rates on a 5 year fixed term currently available from lenders and concluded that the new Chelsea 5 year fix presently offers the best value .
