Whether you are borrowing using a two-year deal, a five-year fix or even locking into a long-term 10-year fixed rate, prices are more attractive now than they were in January, according to Moneyfacts.co.uk.
Indeed, the data analysts, revealed those borrowing money for their home using an average two-year fixed-rate mortgage this month will have paid an average rate of 2.49% compared to the 2.52% they would have been charged in January.
Five year fixes, meanwhile, have fallen from a typical 2.94% in January to 2.85% today. And the price of a 10-year fixed rate has fallen from 3.13% in July 2018 to 3.05% in January to 3.01% this month.
In fact, it’s much better to be a borrower than a saver as whilst prices are falling on mortgages, when it comes to savings the interest rates on offer have fallen since January too.
Borrowers urged to fix soon
The message from Moneyfacts, for borrowers who might be waiting for prices to go down further, is to consider fixing their mortgage soon to take advantage of the deals currently on offer.
Rachel Springall, finance expert at Moneyfacts.co.uk, said interest rates were currently as low as 1.35% – a rate which is currently available for a two-year fixed deal with Halifax.
She advised first-time buyers to keep a close eye on their finances and be mindful that with both house prices and the cost of rent on the rise in the UK, their dream of getting onto the property ladder may be further away than first thought too.
Springall added: “While interest rates are a convenient measure to compare deals, it is important that borrowers consider a mortgage based on the overall true cost, particularly to save on any upfront fees.
“Seeking out independent financial advice is a good idea to navigate the mortgage minefield.”
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