Fixed Rate Remortgage Deals Getting Better but May Not be Around for Long
Remortgages are currently at very attractive rates; in fact fixed two year deals are at record lows according to new data. In a study by Moneysupermarket the average record low of fixed two year mortgage deals had reached 3.82 per cent. The lowest reported was that from Leeds Building Society which recently rolled out their two year fixed rate mortgage with interest at 1.99 per cent. The average in August was 4.01 per cent so a drop to 3.82 per cent in September is astoundingly attractive and homeowners and home buyers should be thrilled to see better deals being offered.
Since all lenders are trying to lure in consumers to borrow there is one thing that needs to be looked at beyond the interest rates. Many deals for both mortgages and remortgages that have very low interest rates will also have high fees attached. When there are high fees it doesn’t always pay to choose the lowest interest rate. All fees should be considered as well as the interest rate offered on a deal.
It is true that there are great rates available but some have been disappearing. Last week some lenders started pulling their best tracker deals in response to the rising economic crisis in the Eurozone. Further problems could cause more tightening of lending and as of late there have been higher loan to value deals available. If a remortgage is something a homeowner has been considering then it may be time to grab a deal now while they are at the lowest levels seen in many decades.