Are higher mortgage rates in store for long-term fixes in 2017?
Could higher mortgage rates be expected in 2017 for the longer-term fixes?
There was a time, not too long ago, where trying to source a long-term fixed rate mortgage was quite a challenge. Today, in 2017, it is a different story as more lenders seek to broaden their appeal, and launch products that provide borrowers with an additional level of security.
A record low rate of 3.11% for a 10 year fix, was reached in November 2016. However, according to market analysts, this has now risen to 3.20%. Has the trend now been set for 2017?
Much depends on swap rates. Currently, swap rates are remaining steady after a rise towards the end of 2016. Future fluctuations, however, possibly triggered by Brexit uncertainty, for example, could mean an end to the record-breaking low rates that have been available.
What should you look for when considering a 10 year fixed rate mortgage?
- competitive rate
- portability (in the event of a move)
- terms and conditions, such as early redemption penalties
The main advantage of a long-term mortgage in today’s market conditions, is the certainty it provides in terms of the repayments you make. What you pay on day one will remain the same for the duration. This means if mortgage rates rise significantly, you are protected. In the event of further cuts in rates, you will not benefit.
Seeking mortgage advice from Deal Direct, can help you weigh up which type of mortgage is the right fit for you. Not only could this save you time, but also effort and eliminate the worry of making a costly mistake.
For mortgage advice you can rely on, choose Deal Direct.
Speak to an adviser now on 0800 048 8828.
