Two and five-year fixed rates gap at one of lowest points in decade

There is now a 0.28 % gap between the two mortgage terms, with two-year fixes at an average of 1.4 % and five–year fixes at 1.69 %

Comparethemarket’s analysis of Bank of England data has shown.
The smallest gap between the two mortgages was recorded in 2008, when the difference was just –0.03 % and the last low was in Q4 2019, when it was 0.25 %

Based on an average mortgage debt of £136,273 at 75 % loan to value (LTV), a borrower with a two-year fixed mortgage will have monthly repayments of £464, while someone on a five-year fix will repay £483.

Annually, these repayments will come to £5,568 and £5,796 respectively.
Mark Gordon, director of money at Comparethemarket.com, said: “The longer you fix, the longer you are locked into a lower monthly payment.

“Considering the current economic environment and historically low interest rates, knowing what your monthly interest payments are over the long-term can provide greater certainty and peace of mind, making it easier to manage everyday finances.”

You can read the full article here: https://www.mortgagesolutions.co.uk/news/2020/09/10/two-and-five-year-fixed-rates-gap-at-one-of-lowest-points-in-decade/

For help or advice in getting your next mortgage deal, please give The Mortgage Bureau a call.

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