Are fears of a 2 year fixed mortgage rate increase unfounded?

We have recently seen lenders 3 and 5 year fixed rates increase, and home-owners are becoming increasingly concerned that 2 year rates could rise too. So are these fear unfounded or should you lock in while you can?

In spite of growing fears of rising property prices and increases to rates, recent research has revealed there is good news for home-owners.

In the last 2 years the actual cost of a 2 year fix has fallen. The average rate for a 90% LTV mortgage was 5.36% in 2012, this figure is now 4.26% making a cost difference of £2,285 over 2 years. The savings which have been made by those with a larger deposit has been even more unfounded.

While historically speaking things are looking good what can we expect in the future? At present there is no sign of 2 year rates rising and so the historically low rates borrowers have been used to over the last couple of years could continue well into this year.

In addition Help to Buy is here to stay which is leading to an increase in property purchase and more competition between lenders for business.

If you want to compare the best 2 year deals on offer for your deposit level call 0800 048 8828 to see how low a rate you can achieve.

For independent advice and a low rate mortgage speak to an adviser at Deal Direct.

Call 0800 048 8828 for a competitive mortgage offer.