5 year fixed mortgage rates have dropped to their lowest level in months, finally dipping back below the 3% mark.
The charges for 5 year fixed rate variables had slowly been climbing due to an expected rise in interest rates. However, this hasn’t come about, and has been postponed until, it is expected, early next year or even Spring of next year.
This previous climb in fixed rates stepped over the 3% mark in July, but, as the expectations are that this hike in interest levels won’t happen for a good few months, the charges have steeply dropped, it is reported.
Getting a fixed rate mortgage is good while the fixed term lasts, as it means the charges won’t alter for the fixed term, regardless of what the base interest rates in the country do.
Although this seems good, it can go against borrowers if the interest rate drops below the fixed rate they are paying. On the other hand, it does offer a more structured outgoing, and it is clear what needs to be paid for as long as the fixed term stands.
With interest rates set to rise next year, now could be the prime time to look into securing a mortgage.
Make sure you check with a professional advisor and discuss everything through with your lender to ensure that the mortgage you are buying is right for you and your situation.
