With fears of rising mortgage rates should you lock in for the long term?

While 2 and 3 year fixed mortgage rates remain at historic lows, 5 year rates are rising.

With signs of rate increases many home-owners have already locked into cheap 5 year fixes to protect themselves from rising rates – so should you?

With a handful of lenders having increased their longer term fixed rates, is now the time to get yourself a new deal while cheap 5 year fixes remain on offer?

The chances are 5 year fixed rates are not going to fall over the next few months, the likelihood is they will start to inch up so if you want to avoid paying more for your home in the long term, lock in while competitive deals remain on offer.

Those on a variable rate deal are at particular risk of increasing rates so if you want to avoid risk switch now.

What 5 year fixed rate deals are on offer?

It is the case that the larger the deposit you have the more competitive a rate you will achieve.

For those with a 40% deposit:

Barclays offers a 5 year fix at 2.95% with fees of either £499 or £999 depending on whether or not you are a Barclays current account holder.

NatWest offers a 5 year fix for 60% LTV at 2.88% with a £995 fee.

If you have a smaller deposit there are also highly competitive mortgages on offer, some lenders such as the Yorkshire BS offer sub 3% 5 year fixes for those with a 75%.

If you would like to review all the market has on offer for your deposit level, contact a Deal Direct adviser and let us help you work out if locking into a 5 year fix is the way forward for you.

Call 0800 048 8828 for impartial advice and a low rate quote.