Five-year fixed home loan for 1.59% as rates tumble
MORTGAGE borrowers worried about global economic turmoil, recession at home or the ‘B word’ can cheer themselves up by grabbing a bargain loan deal while they can.
Experts say a price war is raging among the biggest brands, including high street banks HSBC, NatWest, Barclays and Santander which are all shaving mortgage rates.
David Hollingworth, of broker London and Country, says: ‘Rates keep getting chipped away at but borrowers can suffer from too much analysis paralysis. Overall rates are competitive.’
Five-year fixed rates are proving the most popular as borrowers seek a decent period of certainty for their biggest outgoing in these uncertain times. Among the cheapest five-year deals is HSBC’s at 1.59 per cent – for those who have a 40 per cent deposit or the equivalent equity in their home if they are remortgaging.
The bank also offers a two-year fixed rate at 1.24 per cent for the same deposit or equity. Both loans carry a fee of £999 and for remortgages provide a free valuation and legal costs.
For the truly nervous there are ten and 15-year fixed rates available. Coventry Building Society’s ten-year fix is priced at 2.3 per cent for borrowers with 35 per cent to put down.
It can take up to three months to remortgage so do not leave it too late if your current deal is finishing soon or you will end up paying a hefty standard variable rate (on average 4.9 per cent) while you wait to complete.