Mortgage borrowers eye short term deals - Mortgages - News | moneyfacts.co.uk

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Mortgage borrowers eye short term deals

Mortgage borrowers eye short term deals

Category: Mortgages

Updated: 01/06/2010
First Published: 01/06/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Short term fixed rate mortgage deals are set to prove most popular with homeowners during the second half of the year, new research has revealed.

According to a poll by NatWest Intermediary Solutions, 41% of financial advisers expect fixed rate mortgage deals of three years or less to top the best selling mortgage charts over the coming six months.

Three in ten (30%) believe that long term fixed rate mortgage deals of five years or more will prove the most popular amongst borrowers.

However, only a fifth of those surveyed (20%) thought that tracker mortgage deals would be the best selling mortgage products in the coming months.

The news comes after Moneyfacts.co.uk revealed that rates on short term fixed rate mortgage deals had dropped to their lowest level for 15 months.

The average rate on a two year fixed rate mortgage now stands at 4.61%, significantly better for borrowers than the high of 5.21% seen since March last year when the Bank of England cut base rate to 0.5%.

The drop in the average rate represents a £52 per month reduction in mortgage repayments for borrowers with a £150,000 repayment mortgage.

The average three year fixed rate mortgage has also dropped, to 5.30%, down from a peak of 5.61%, equating to a saving of £28 per month.

Furthermore, the average five year fixed rate mortgage deal has dropped to 5.74%, down from 6.24%, a monthly saving of £46.

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Building societies winning the mortgage rate war

Competition is fierce in the mortgage market, and borrowers may assume that the rates from banks will be significantly lower than those elsewhere. However, things aren’t as they seem, as building societies are the winners of the mortgage rate war.

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.
 
Close