Great value fixed rates mortgages available
According to recent research mortgages with fixed rates of under 5% interest are now being offered to UK consumers again.
The move comes after a period where not only were rates going through the roof but many lenders admitted to having to take fixed rate mortgages off the shelves due to high demand for the products as a result of three interest rate rises in the space of six months.
The fixed rate mortgages of below 5% are the first that have been available since January of this year. Interest rates were left static at 5.25% last week by the Bank of England, and the reaction to the lowered interest rates on fixed rate mortgages is mixed as some experts predict that interest rates have actually peaked and therefore the deals may not be as impressive as they may seem.
One investment analyst stated: " We remain of the view that a cooling economy and better inflation figures will head off another rate increase."
However, other financial experts continue to predict that there will be at least one more rise this year, which could take the interest rate up to 5.5%. Those looking to take out a fixed rate mortgage will need to make their own mind up with regards to whether to take this gamble with regards to whether the fixed rate will actually prove good value for money for long depending on what happens with the base rate.
Those looking for fixed rates should certainly take the time to shop around and see what's on offer, with a number of lenders now offering great deals on lower fixed rates. Amongst the lenders offering fixed rates of below 5% are Bradford & Bingley, the Derbyshire, and the Stroud and Swindon, with some others offering rates of just over the five percent mark.
Tom Smith
2nd April 2007
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