Enable’s IFAs in Bishop’s Stortford can see that mortgage rates are getting more competitive, particularly fixed-rate mortgages. With so many options in the mortgage market, it can be hard to know what is best for you and your family.
Recently Moneyfacts reported that “the difference between the average two-year fixed rate and five-year fixed rate is just 0.17 per cent” This daily gap is reported to be the narrowest seen since June 2013, which came a year after the launch of the Funding for Lending scheme in 2012 which is credited with creating further competition in the lending market.”
Eleanor Williams a Moneyfacts financial expert said “ that although the cheap funding schemes are drawing to a close, the low base rate environment and demand from borrowers means that lenders are keen for the business.” Moneyfacts adds that the annualised average rate gap for 2020 was 0.27 per cent, which was the lowest recorded since 2013 too, and compares to 0.36 per cent in 2019 and 0.64 per cent in 2016.
“It is interesting to note that, despite the average rates increasing for two-and five-year fixed mortgages since reaching record lows in July 2020 (1.99 per cent and 2.25 per cent, respectively), the gap between the two today is even lower at 0.17 per cent, which is even more positive for potential borrowers considering longer-term fixed rates.” Said Williams.
With inevitable economic uncertainties, it is still vital that the property market keeps moving forward and we all need homes. Whether you are a first-time buyer or wanting to move up or down the property ladder Enable’s experienced IFAs in Bishops Stortford know that when borrowers are concerned about market fluctuations a five-year fixed-rate mortgage can provide some much-needed peace of mind and security in turbulent times.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage