5 of the best fixed-rate mortgages

Wednesday, 20 October 2010 06:17

Could now be the time to switch to a fixed-rate mortgage?

That is the question on many a home mover, remortgager and first-time buyer's lips.

According to a poll by Fair Investment Company, 69 per cent of respondents predicted that the Bank of England base rate will rise by August 2011.

And Ray Boulger of John Charcoal has suggested the extreme, but not inconceivable, outcome of interest rates shooting up to 8 per cent by the end of 2012.

So despite most economists taking the view that interest rates will remain low for some time, the prospect of a rise in the base rate, which will in turn increase repayments on variable mortgages, is a very real concern for homeowners.

Consequently, fixed-rate mortgages are gaining popularity once again after being shunned by the majority of home buyers and remortgagers since the base rate was set at 0.5 per cent back in March 2009.

According to the latest figures from the Council of Mortgage lenders, fixed rate mortgages were chosen by 48 per cent of new borrowers in June 2010, up from 43 per cent in the first quarter of the year.

So if you are prepared to take the plunge and fix your repayments rather than take the risk of being tied to base rate fluctuations, take a look at our list of five of best buy fixed-rate mortgages.

Norwich and Peterborough Building Society's 5-year 80% LTV mortgage fixed at 4.49 per cent

Ewan Edwards, head of marketing at Norwich and Peterborough, describes this mortgage as the "best in the market" at its loan-to-value tier, and will be "one of the lowest longer-term fixed rates available in the mortgage market overall."

The loan has a 10 per cent penalty-free per annum capital repayment feature and a fee of £995.

Yorkshire Building Society's 5-year fixed 3.99 per cent mortgage

This deal, Yorkshire's lowest ever 5-year fixed-rate, is available to borrowers with a minimum 25 per cent deposit.

Tom Girling, product manager for mortgages at the organisation, commented said the mortgage offers "great value and peace of mind over the medium and longer-term."

Leeds Building Society's 5-year 3.94 per cent fixed-rate mortgage

This mortgage has no higher lending charge and is fully portable, which is good news if you decide to move home within the five-year term.

Sales and marketing director at the building society Kim Rebecchi said the organisation "understands consumers prefer certainty".
She added that Leeds' fixed-rate range provides borrowers with "peace of mind and a degree of security."

HSBC's 5-year Fixed Special, 3.95 per cent, 60% LTV mortgage

HSBC say that this mortgage is their "lowest ever" longer term loan.

With a 60 per cent LTV rate, and a booking fee of £595 this deal will be attractive to borrowers with larger deposits.

ING Direct's 4.19 per cent 5-year fixed mortgage

This competitive mortgage is available to first time buyers and remortgagers who can meet the 75 per cent LTV requirement, there is a booking fee of £945.

Compare the best mortgage deals from dozens of lenders with myfinances.co.uk in association with beathatquote.com.

Always speak to a qualified financial adviser before purchasing a mortgage product.

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