Low interest rates keeping mortgages cheap


Mortgages are being kept at a cheap level due to increasing confidence that interest rates will remain low for a reasonable length of time.
This is according to Ben Wilkie, editor at What Mortgage, who noted there are currently a number of affordable two-year fixed-rate home loans on the market because there is an assumption that even if these rates were to rise, such an escalation will not be on a major scale over the next 24 months.
The industry expert observed it is easier to predict what will happen over a two-year period rather than to foresee events over half a decade – which is why five-year agreements remain slightly more expensive.
Speaking of the charges involved in such deals, Mr Wilkie added: “The fee is bigger with a shorter deal period than it is for a longer period because it would be spread over a much shorter period of time.”
His comments follow the launch of Leeds Building Society’s lowest-ever two-year fixed-rate mortgage rate of 1.99 per cent.

Get the Best Rates from Local Mortgage Advisers Now!

Finding the best mortgage advisers in your area is easy. Whether you're looking for buy to let, a residential mortgage, or a commercial loan, just enter your location into the form and answer a few questions. Then sit back and let the backend system do all the legwork to put you in touch with independent mortgage advisers near you!

Find the Best Rates from Local Mortgage Advisers!
Finding the best mortgage advisers in your area is easy. Whether you're looking for buy to let, a residential mortgage, or a commercial loan, just enter your location into the form and answer a few questions. Then sit back and let the backend system do all the legwork to put you in touch with independent mortgage advisers near you!

Powered by Bark

Close
100% secure