Increasingly, these products are being priced at levels which would have been unheard of just a couple of years ago so borrowers looking for the security of a fixed rate will find some fantastic deals on offer. SPF has access to fixed rates starting at 3.79 per cent for five years, for example.
However, it still doesn't make much sense to opt for a two-year fixed rate as it looks increasingly as though interest rates won't rise for a few years yet. But some of the longer-term fixes, say for five years, offer very good value. If you have a sizeable deposit, you will get the pick of the rates but pricing has also fallen for those with more modest down payments or similar levels of equity in their home who are remortgaging.
A couple of lenders have recently launched competitive fixes for seven or even ten years. But borrowers must be certain about fixing for such a long period of time because there will be early repayment charges for switching during that time.
For further advice, contact SPF Private Clients.