As mortgage lending institutions step up the competition, there are some amazing fixed rate deals around for those who choose to look.
Historically, finding a five year fixed rate mortgage with an interest rate under 5% was thought good. But we are now seeing ten year fixes as low as 3.99%!
At least six lenders currently offer a ten year fixed rate contractor mortgage. Of those, the cheapest rate of 3.99% is offered by the Chelsea Building Society. However, there is a £1,495 fee and the deal is only available to people who have at least 30% to put down as a deposit.
The next best rate comes from Britannia who offers 75% LTV at 5.29% over the ten year term. Borrowers with less in the way of savings can get an 85% LTV ten year fix from the Skipton Building Society with a rate of 5.85% and no arrangement fee.
As with all mortgage products, it pays to read the small print before you commit. These long-term fixes generally attract high exit fees of anything up to 7%. Furthermore, the mortgage may not be transferrable to another property if you are planning on moving home.
On the plus side, borrowers do get the peace of mind of knowing exactly what their mortgage repayment will be every month for the next ten years and this could entice a lot of people during turbulent economic times.
Mortgage seekers have never had it so good, but some people will no doubt hang on in case rates drop further. This could happen, but the danger is that if you wait too long, you’ll miss the boat and rates will start their inevitable increase.
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