Lowest fixed rate mortgages now available

February 12, 2016 by Brendan O'Neill

Rates

Fixed rate mortgage products have continued to fall and some of the lowest rates ever are now available.

Interest rates have remained low, despite concerns that the Bank of England would increase the base rate this year. The average mortgage rate for a borrower with a 10% deposit at a fixed rate is now 3.06%, in comparison to 3.84% last year.

Lenders have reduced their rates dramatically during the last four years. A borrower with a 40% deposit in 2012 would have been able to secure a mortgage deal offering 4.05%. This year, there is a deal with 1.99% available for someone with that loan to value ratio.

Despite the good news about low interest rates, Charlotte Nelson from Moneyfacts has issued a warning:

“It is still a question of when the Bank of England will raise interest rates rather than if, so borrowers need to take advantage of current low mortgage rates before they disappear.”

Nelson did add that the current rates are excellent news for home owners and borrowers, saying that there may be even better deals available.

Mortgage advisers are often asked to search for the best deal for a borrower, using the knowledge gained with their CeMAP qualification. This may be the best course of action for borrowers who face problems due to the regulation changes, which includes affordability rules. Nelson advised those who manage to secure a low mortgage rate to overpay on their mortgage to reduce the overall term.