Lenders fight to offer attractive fixed rate mortgage deals in light of interest rate rises
In the follow up to the two recent interest rate rises enforced by the Bank of England in August and November of 2006, many lenders are now battling to offer attractive fixed rate deals to those looking to remortgage or buy a property.
Consumers in the UK will now find a range of fixed rate mortgage offering some very tempting incentives, with many major mortgage providers battling for custom from those that will be looking to remortgage following the interest rate rises, as well as those looking to take out an initial fixed rate mortgage to protect themselves from further rises in the interest rate.
Lloyds TSB has recently announced the launch of the ‘low start mortgage’, which offers a fixed rate of 1.99 percent until February 2008, and then a further four years at a fixed rate of 5.99 percent. The Leeds Building Society has also announced some incentives and changes to its three year fixed rate mortgage, where consumers can enjoy a range of benefits including payment of legal fees, free evaluations, cash back, and other benefits depending in their circumstances. Many others are gearing up to entice new custom from remortgagers and buyers by introducing special offers on fixed rate mortgages.
The interest rate has risen from four and a half percent to five percent over recent months, with two interest rate hikes in the space of several months. Many predict that there will be a further rise in interest rates in the early part of 2007, and a number of consumers are now looking to either swap over to a fixed rate or to take out a fixed rate mortgage to buy a home so that they can enjoy the peace of mind that comes with fixed repayments without being affected by further interest rate rises.
However, consumers are also advised to ensure that they research the market thoroughly when looking for a fixed rate deal, as many banks and lenders will be bringing out special offers in order to remain competitive, which means that consumers should resist the temptation to jump at the first special offer that comes along until they have look at other options.
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