Lowest 5 yr fixed rate mortgage deals offer good value
Home-owners are being urged to consider the lowest 5 yr fixed rate mortgage deals currently on offer when looking for a new mortgage. The cheap rates currently available on 5 yr trackers and fixed deals could save home-owners the cost and bother of switching every 2 years.
By going for the lowest 5y fixed rate deal, rather than the more traditional 2 yr fixed rate deal, borrowers could avoid future interest rate increases when they do eventually start to go up. Current thinking is that 5 yr deals offer good value and are better than the majority of 2 yr deals, which switch on to a standard variable rate at the end. Tracker deals are cheaper initially, but are more risky as monthly repayments will increase if the base rate goes up.
Fixed rate mortgage deals require borrowers to pay an agreed set monthly repayment. For many borrowers there is a level of security attached to this type of mortgage repayment. Knowing what repayments will be over a long period is helpful when budgeting everyday expenses and this is particularly true in today's uncertain economic climate.
The Chelsea Building Society are offering one of the lowest 5 yr fixed rate mortgage deals at the moment. The product is available to purchase and remortgage customers at 3.29% up to 31 January 2017, it has a maximum loan-to-value of 70% and a £1,495 fee.
