Should you choose a longer-term fixed rate mortgage? Consult mortgage broker, Deal Direct.
Mortgage broker, Deal Direct, is here to offer you the very best advice on which mortgage would be best suited to your circumstances.
2 year fixed-rate mortgages have reigned as the most popular type of home financing for some time. This is because they offer a high level of flexibility allowing the homeowner to switch at the end of the term. This would be useful if:
- your circumstances regularly change
- you know you will need to move home
- the economy indicates falling rates
However, recently we have noted that the trend is changing and more of our customers are opting for the longer-term fix of 5 years. This is because a series of interest rate rises are predicted and homeowners are taking action to lock-in their mortgage repayments now while rates are still low. For example:
- Barclays offer a 5 year for up to 60% LTV from 1.79%
- Virgin Money offer a 5 year for up to 65% LTV from 2.01%
- Yorkshire Building Society offer a 5 year for up to 75% LTV from 1.84%
While 5 year fixes are becoming more popular, there is also a growth in popularity of 7 and 10 year fixes. Normally with these types of mortgage, a larger deposit is required although there are exceptions to this.
For further details on any of the above mortgages and advice on the pros and cons of a longer-term fixed rate solution, contact us here at Deal Direct.