Continued uncertainty in the economy is persuading many people to fix their mortgage for a longer term, particularly five-year deals.
Low mortgage rates have swept across the market over recent weeks, believed to be a result of the Funding for Lending Scheme, introduced last August by the Government to encourage lending to individuals and small non-financial businesses.
Research by Moneyfacts.co.uk found the average five-year fixed rate stands at 3.88% compared with 5.59% in April 2011.
Norwich & Peterborough Building Society
Penny says… "Currently at the top of the five-year mortgage market is this highly competitive deal available to purchase and remortgage borrowers with deposits of 40% and over.
"This mortgage should prove very popular with borrowers looking for a flexible, low rate deal, which also boasts generous incentives for purchase and remortgage borrowers and features including overpayments, underpayments and payment holidays."
Penny says… "Sitting in second place is this five-year deal available to borrowers with deposits of 25% and over.
"Customers must open or hold an existing first direct current account to run alongside this mortgage."
Leeds Building Society
Penny says… "This attractive deal, available to purchase customers only, should prove popular with borrowers with deposits of 20% and over.
"Borrowers must remember that an additional completion fee, the cost of which is determined by the borrowing amount, is required on top of the initial £199 upfront booking fee."
The Co-operative Bank
Penny says… "As well as having a low rate and no arrangement fee, this deal offers borrowers the flexibility to make overpayments, underpayments and take payment holidays.
"This mortgage is subject to applicants switching their current account to The Co-operative Bank upon application or two consecutive months' salary paid into the lender's current account."
Hanley Economic Building Society
Penny says… "Borrowers with smaller deposits of 10% and over should be attracted to this deal from Hanley Economic Building Society.
"Combining a best buy rate with no arrangement fee, this product's appeal is heightened by the flexibility to make overpayments."
Information & Rates correct as at: 30/05/2013
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