Why chose a fixed rate mortgage?

Fixed rate mortgage deals are currently in high demand. In the first quarter of 2013 83% of new mortgages taken out were fixed rate deals, trackers no longer look quite as attractive as they once did.

So why is this?  Its simple - fixed rates are now so low they are highly competitive against trackers.

In recent months lenders have been waging a fixed rate mortgage war. Rates have fallen, so much so average rates are now down to 3.62%.

The impact of the Funding for Lending Scheme is being felt market wide, and borrowers at all deposit levels are benefiting from lower rates. Borrowers who may have previously considered a tracker, are now getting such a good deal on a fixed rate mortgage there is no need to take a risk for a cheap deal.

Now is a great time to source a new fixed rate deal, there are some highly competitive rates on offer which would have been unheard of a year a go. A 5 year fixed rate mortgage can now be found from as little as 2.49% and a 2 year fix from 1.74%.

While low rates are on offer you must remember there is more to the cost of a deal than a low headline rate. The rate offered is just one part of the story, equally important are the fees charged and even the incentives offered. Fees can be high and some incentives maybe of great value, such as the Halifax's offer to pay first time buyer 1% stamp duty whereas others may not.

Every factor has to be considered to work out which is really the best fixed rate mortgage for your deposit level.

If you would like advice as to which mortgage best suits your needs and a review of the most competitive rates for your deposit level, call Deal Direct on 0800 048 8828.

Contact an impartial adviser today.