Mortgages are now available at affordable fixed rates
The recent interest rate rises that were enforced by the Bank of England have unsurprisingly unsettled both homeowners and new property purchasers, with rates rising from four and a half percent to five and a quarter percent in the space of just six months. And with further interest rate rises predicted by some experts, many people are flocking to take on mortgages and remortgages with fixed rates so that they don't feel the pinch if the interest rates continue to rise.
Banks were so flooded with buyers and homeowners wanting to take out fixed rate mortgages a couple of months ago that some decided that they would have to suspend this type of loan as all of the funding was being used up by the flurry of consumers that were trying to take out these loans. However, a number of lenders have recently announced that they are now offering fixed rate mortgage deals that are below the five percent interest mark.
The predictions with regards to further interest rate rises are mixed, with some predicting that the rate will continue to rise throughout the year and others stating that the rate is stabilising and may not rise to beyond five and a half percent. Potential borrowers will need to decide whether they want to gamble on the interest rate continuing to rise by taking on a fixed rate mortgage, with fixed terms typically between around two and five years.
The Nationwide has also announced that it will be offering a twenty five year fixed rate mortgage set at just below five and a half percent, which could be good news for those that want to enjoy financial stability throughout the term of their loan, but could be risky for those that want to benefit in the event that interest rates come down.
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