There are still a number of providers offering a sub-5 per cent fixed rate products, but these are fairly exclusive with average fees of £2,062 apiece.
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Back in July 2006, borrowers could pick and choose from a host of 112 fixed rate deals under 5 per cent whilst the base rate lay at a relatively low 4.5 per cent, however the subsequent hikes have wiped these out at a rate of nine per month.
There are now only a mere 29 mortgage products available from 14 lenders, numbers which will no doubt plummet in the hours after the announcement on Thursday lunchtime.
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Chief executive of MoneyExpert.com, Sean Gardner, commented: Fixing your mortgage rate at under five per cent was a real possibility in the summer of last year if you did your research youll have found four and even five year fixed rates under the magic five per cent mark.
However as rate rises continues, lenders have had to react by offering less attractive deals, particularly on fixes rate mortgages. There are still some good products out there, but none of the fiver per cent club will tie you in for longer than two years, and with such hefty applications fees you may be better seeking out a slightly higher rate.
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