Fixed rate mortgages are currently at the lowest rate ever seen, thanks to a combination of low inflation, slowing economic growth globally and falling oil prices (to name a few).
This means it is now possible to secure a 2 year fixed mortgage at a rate of just 1.07% and a 10 year mortgage for less than 3%.
As discussed by Simon Lambert in an article for This Is Money, the current rates could be here to stay, could go even lower or could vanish overnight, and so homeowners and buyers should choose carefully depending on their personal circumstances.
With a myriad of options on offer, all homeowners should consider:
- the benefits of the low monthly rates compared to any arrangement fees
- if the deal is portable should you be planning to or suddenly need to move house
- the size of the fees you would incur for exiting your agreement early
Whether you are looking at a 1 year, 5 year or 10 year fix, it is always wise to look at all the options and to seek impartial and professional advice.
