Mortgage rates fall again
The typical 5-year fixed rate currently stands at 3.45%, up from 4.06% last year and 4.67% in 2012.
Similarly average 2-year and 3-year fixes stand at 3.21% and 2.90%, down from 4.80% and 4.48% in 2012 respectively.
The Association of Mortgage Intermediaries predicted a rate rise happening as late at quarter four 2016 last week.
Dan Plant, consumer expert at MoneySuperMarket said: “Mortgage lenders are doing a U-turn, decreasing their rates again after hiking them over the last couple of months.
“Even though the Bank of England base rate hasn’t risen yet, it’s still a case of when rather than if, so any homeowners looking for a cheaper deal should take advantage of the current low rates.
“Many lenders allow mortgage holders to reserve rates available now for up to six months for a small fee, so even those who still have some time left on their current deal can benefit.
“However, you should never rush into decisions to do with mortgages – after all, for most of us it’s our biggest single spend every month. Before taking out a mortgage, it’s vital to work out the total cost over the term of the deal, taking both rates and fees into account.
“Expensive fees can wipe out the potential benefit of a lower rate so do the sums first to ensure you really are getting a great deal. The good news is that we’ve seen fees decrease over the last four years, especially for five year fixed deals, meaning it’s a cheap time overall to be looking around. ”