The lowest mortgage rates maybe those offered for hybrid deals.
Borrowers are being faced with a tough decision as to which deals offer the lowest mortgage rates.
The answer could well be a hybrid-mortgage as rates are initially pegged to the BBR. With the BOE likely to keep the base rate low for the next couple of years, a hybrid could be the way to go.
A hybrid mortgage offers both a tracker and a fixed rate. Those taking out such a deal have the best of both worlds. Lenders lowest mortgage rates are pegged to the BOE base rate for the first 1 or 2 years, after which the deal reverts to a more secure fixed rate for the remainder of the mortgage term.
The Chelsea Building Society is one of various lenders offering a 5 year hybrid deal. It offers a 2 year tracker at 1.89 % above the base rate which is combined with a 3 year fixed rate of 3.89 % which is agreed for the last 3 years of the deal. An arrangement fee of £1,495 will be charged.
Some of the lowest mortgage rates offered by the Yorkshire Building Society are for hybrid deals. The lender offers an initial tracker for 75 % LTV at 2.49 % and then a fixed rate of 3.89 %, the product comes an arrangement fee of £995.
To compare all UK lenders lowest mortgage rates contact Deal Direct today.
