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Fixed rate Mortgage falls

Enable’s IFA’s in Bishop’s Stortford know that making sure you have the best deal on your mortgage is a key part of financial planning. Earlier this year two and three-year fixed rate mortgage rates fell to record lows with borrowers accessing the largest number of  products since 2008, according to data compiled by the Mortgage Advice Bureau;  the average two-year fixed rate mortgage fell to 2.54pc in February, down from 2.56pc in January and the average three-year fixed rate mortgage fell to 2.92pc, down from 3.01pc the previous month, the average five-year fixed rate deal also dropped slightly, from 3.27pc in January to 3.25pc..

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The data is good news not just for prospective homebuyers but also those looking to remortgage according to Brian Murphy, head of lending at the Mortgage Advice Bureau. “Falling rates are helping to ease the impact of rising house prices on borrowers,” he said. “Over the past 12 months fixed rates have fallen steadily, meaning borrowers taking out a mortgage today can benefit from lower monthly repayments. “This is not only good news for prospective homebuyers: existing homeowners can look to take advantage of these low rates by remortgaging to a much better deal, particularly if they are on a poor value standard variable rate (SVR).”

The data revealed that the total number of mortgage products rose by 3pc in February to 17,654 – a substantial annual increase of 36pc from 12,940 in February 2015.But it has to be remembered that the pricing of new mortgage deals is influenced by the direction of travel for the Bank Rate. Currently the market prediction for the first rise being as late as 2020 could trigger another wave of even cheaper mortgage deals.

 Your home may be repossessed if you do not keep up repayments on your mortgage.

Source: The Telegraph

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 – Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.

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