It has recently been reported that the average fixed rate mortgage deals have increased, according to Moneyfacts. This is great news for those looking to purchase a home or refinance their current mortgage.
The report from Moneyfacts shows that the average two-year fixed rate mortgage deal has risen from 2.45% to 2.48%, while the five-year fixed rate mortgage deal has increased from 2.83% to 2.87%. This is the first time in four months that the average two-year fixed rate mortgage deal has increased, and the first time in three months that the five-year fixed rate mortgage deal has increased.
These increases are due to a number of factors, including the Bank of England’s decision to hold interest rates at 0.75%, as well as the increasing competition between lenders. This competition is driving down rates, making it more affordable for borrowers to take out a mortgage.
The increase in fixed rate mortgage deals is good news for those looking to purchase a home or refinance their current mortgage. Fixed rate mortgages offer borrowers the security of knowing that their monthly payments will remain the same throughout the term of the loan, regardless of any changes in interest rates. This can help borrowers budget more effectively and make it easier to plan for the future.
However, it is important to remember that fixed rate mortgages are not suitable for everyone. Borrowers should carefully consider their financial situation and make sure they understand all of the terms and conditions before taking out a mortgage. It is also important to shop around and compare different deals to ensure you are getting the best deal for your circumstances.
Overall, the increase in average fixed rate mortgage deals is good news for those looking to purchase a home or refinance their current mortgage. It is important to remember, however, that fixed rate mortgages are not suitable for everyone and it is important to carefully consider your financial situation before taking out a mortgage.