remortgages can help you reduce your monthly mortgage costs

Five year fixed mortgage rates increase

Five year fixed mortgage rates increased

According to a recent mortgage broker report, 5 year fixed mortgage rates have increased to a 2 year high. A typical 5 year fixed rate mortgage is now priced at approximately 2.95%. Previously, rates of this size were last seen in December 2016, according to Moneyfacts.

Most mortgage providers have been trying to keep mortgage rates competitive, since the Bank of England base rate increase in August. However, it seems like this cheaper pricing of rates is starting to change.

Apparently, the demand for five year fixed mortgage rates has increased of recent. Borrowers have been attempting to lock into loner term fixed rate deals. Perhaps a reason for this movement towards longer term fixed rates could be  the effect of potentially rising base rates.

A representative of Moneyfacts, said: “It seemed to be only a matter of time before providers increased their five-year fixed rates, as lenders could not continue to absorb the extra costs as a consequence of the base rate increase indefinitely, with many lenders having reassessed their options.

“Despite this, the pressure to remain competitive is far greater, and this is shown by the rate only increasing by 0.04% this month and by just 0.08% since the beginning of the year, up from 2.87%.”

If you’re considering a re-mortgage, or rate upgrade, for your present mortgage, we’ll be happy to run some comparisons for you. Where appropriate you might be able to lock in to a new fixed rate today, even where your current mortgage might not be eligible for upgrade immediately.

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