Recent data from Moneyfacts has revealed an increase in three- and 10-year fixed mortgage rates, while two-year fixed rates remain steady. This news may be of particular interest to those looking to purchase a home or refinance their current mortgage.
The Moneyfacts data showed that the average two-year fixed rate mortgage remained steady at 2.44%, while the average three-year fixed rate mortgage increased from 2.72% to 2.77%. The average 10-year fixed rate mortgage also increased from 3.04% to 3.09%.
The increase in three- and 10-year fixed mortgage rates could be a sign that lenders are becoming more cautious about the current economic climate. With the UK economy facing uncertainty due to Brexit, lenders may be looking to protect themselves by offering longer-term fixed rates.
For those looking to purchase a home or refinance their current mortgage, the Moneyfacts data suggests that now may be a good time to consider a three- or 10-year fixed rate mortgage. This could help to protect borrowers from any potential interest rate rises in the future.
However, it is important to remember that longer-term fixed rate mortgages come with higher interest rates than two-year fixed rate mortgages. Borrowers should also consider their own financial situation before taking out a longer-term fixed rate mortgage, as they will be tied into the same rate for the duration of the loan.
Overall, the Moneyfacts data reveals an increase in three- and 10-year fixed mortgage rates, while two-year fixed rates remain steady. For those looking to purchase a home or refinance their current mortgage, now may be a good time to consider a longer-term fixed rate mortgage. However, it is important to remember that longer-term fixed rate mortgages come with higher interest rates and borrowers should consider their own financial situation before taking out a loan.