Rate war rages as five-year fixes slip below 1.5 per cent
Mortgages have hit record lows with five-year fixed-rate mortgages falling below 1.5 per cent. There is further good news for borrowers looking for the certainty of a fixed rate who perhaps don’t want to fix so long, with two-year fixes also falling in price and rates now starting from 1.05 per cent. The mortgage price war has come about as lenders compete for a limited number of borrowers. With funding costs remaining low, lenders continue to trim rates and relax criteria in order to attract customers.
These astonishingly cheap rates are the lowest we have seen in 25 years. For a borrower to fix for five years at 1.5 per cent is a very attractive opportunity and with a handful of lenders offering five-year fixes at less than 1.5 per cent there is an increasing amount of choice for borrowers at these rock-bottom rates.
However, while rates are cheap, borrowers must ensure that they are not fixing for longer than they are absolutely sure about. These fixes also come with early repayment charges if you need to get out of the mortgage before the end of the fixed period so it is worth seeking advice before securing any mortgage deal.
For further information speak to SPF Private Clients.
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