The month of May has seen the first ten year fixed rate mortgage for under 3 percent, requiring just a 20 percent deposit. Fees do apply. There is a short window of opportunity with some lenders offering such competitive mortgage arrangements though.
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10 year fixed rate for 2.99%
A new loan by a leading high street bank, came onto the market in early May and could be considered a “top deal” for those borrowers prepared to commit over the longer term. A ten year fixed rate at 2.99%, plus a £999 one off fee. The real bonus is the low deposit though as with 20% this deal can be secured.
Other lenders had offered ten year fixed rates at below 3 percent in previous months this year, however a larger deposit of 35% or more was required. These other deals have also now been withdrawn from the market, or their rates increased above the 3 percent mark, leaving just this one ten year fixed rate mortgage priced at under 3%.
Strike while the iron is hot
Rates on the whole continue to be an all time low, with lenders having to keep up with the fierce competition they are experiencing. However, many deals are only available for a very short window.
For example, one lender is offering a 5 year fixed rate at 1.99% for borrowers with a 40% deposit. It is only available between 6 May and 20 May – a 10 day window of opportunity.
Some low rate offers are being withdrawn, slowly from the market. This could be due to the fact that the banks have ran out of funds to lend at these rates.
Or could it be a sign of a wider trend of rates starting to very slowly increase from the rock bottom rates of past years?