Longer term fixed rate mortgage deals get cheaper.
According to a Moneyfacts.co.uk report, average long term fixed rate mortgage costs have been reduced by UK mortgage lenders.
Figures released reveal that 5 year fixed rate mortgage costs have been significantly reduced during the past 12 month. Rates have come down from 5.59 per cent in April 2011 to 4.86 per cent today.
This is good news for the many mortgage holders recently hit by lenders mortgage rate increases, a 5 year fixed rate offers greater long term security against a further mortgage rate rise.
Moneyfacts.co.uk spokesperson Louise Holmes commented on the figures saying that average 5 fixed mortgage rates have fallen steadily over the last 2 years. She added that fixed rates offer home-owners reassurance in knowing that their monthly mortgage payment will not increase. Such reassurance is often beneficial in planning budgets.
The reason lenders are able to offer cheaper long term fixes is down to funding costs decreasing through the swap rate market. As costs in this area have reduced, lenders have been able to offer lower rates.
The base rate is predicted to stay at 0.50 per cent for the foreseeable future. However as predictions are really just best guesses, it would be advisable for those wishing to take advantage of cheap fixed rate mortgage deals, to contact Deal Direct now for lenders best offers.
Low rates are not likely to remain forever therefore fix a great rate now while cheap deals are available.
