Mortgage rates hit a record low.

As mortgages rates hit an all time low with the release of lowest ever 5 year fixed rates, should you think about fixing a rate?

A well publicised mini mortgage rates war is being waged between UK lenders who are competing for business.

For those with a substantial deposit highly competitive rates are available, and for those looking for security a longer term 5 year fix is well worth considering.

Which lenders offer competitive 5 year fixed mortgage rates?

Santander, HSBC and NatWest all released record low 5 year fixed rates at below 3%. The one small catch with all of these offers were the high fees and deposits required.

HSBC were the first lender to release a 5 year fix under 3%, their deal was available at 2.99% for up to 60% loan to value with a £1,499 fee. HSBC have since withdrawn their offer advising that the product quickly became over subscribed and the mortgage funding exhausted.

Santander not wanting to miss out on business also released a record low rate at 2.99% for 60% loan to value with a fee £4 lower at £1,495.

NatWest joined the battle under cutting the 2.99% rate by offering their deal at 2.95% for 60% loan to value. While the rate offered is lower, the fee is far higher at £2,495 and therefore it may not be the most competitive deal overall.

As working out which deal is most competitive can be complex you are advised to contact Deal Direct to conduct a mortgage search on your behalf.

The advantage of an exceptionally low mortgage rate can be lost if you accept a deal with a very high fee. It is essential to consider all fees and costs when reviewing mortgage offers because if you make an error it could mean that you will pay more over the agreed fixed term.

To ensure a competitive mortgage offer call an independent adviser at Deal Direct to find you the cheapest mortgage to suit your circumstances.

Call Deal Direct today.