Mortgage borrowers eye short term deals - Mortgages - News - Moneyfacts


Mortgage borrowers eye short term deals

Mortgage borrowers eye short term deals

Category: Mortgages

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

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 It is now over 6 months old so the content may be out of date.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 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 Any products featured may be withdrawn by their provider or changed at any time.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

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.