Fixed rate mortgages are still uncompetitive
Fixed rate mortgages in the UK are increasingly becoming uncompetitive and this comes as no surprise in the current climate. It seems that mainly two and three year fixed rate mortgages are those affected the most with good deals disappearing fast.
Many homeowners are now considering alternative options such as variable rates, interest only mortgages and even increasing the mortgage term in order to help try and keep outgoings to a minimum.
Figures released earlier on in the week by Spicerhaart Financial Services (SFS) found that fixed rate mortgages seem to be taking over the mortgage market. This company looks out for fixed rate mortgage deals.
Business development director Francis Ghiloni from mform said, "Fixed-rate mortgages have recently dominated the market as borrowers prised security and certainty above everything else and lenders offered competitive deals."
He went onto say that "However, the cost of security appears to be excessive and fixed rates are now uncompetitive across the board for most product areas. Even SVRs can be more competitive on a true cost basis."
According to research from the Council of Mortgages Lenders (CML), the number of fixed rates mortgages being taken out in May this year has increased in numbers compared to figures in April.
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