Lower rate fixed rates may become more accessible

According to a recent report some consumers may be able to enjoy easier access to lower rate fixed rate mortgages, with some deals now available with interest rates of below the 5% mark.

Fixed rate deals with interest rates of around 5% or under seemed to have disappeared for a while recently following the series of interest rate hikes applied to the base rate by the Bank of England since August 2006.

However, an interest rate cut of 0.25% in December, and the predicted two or three interest rates that are due to come over the course of this year according to many experts, has seen the rates available on fixed rate mortgages come down with many lenders.

Recently a number of lenders announce the launch of fixed rate products set at below the 5% mark, enabling those looking for the peace of mind of a fixed rate mortgage to enjoy increased affordability.

One industry professional stated: “The good news for borrowers is that two-year swap rates have finally fallen under the 5% mark in anticipation of another rate cut, so fixed rates are now becoming much more competitive.”

She added: : ‘Even so, trackers will prove best value for most as Bank rate is widely expected to fall to 5% or lower this year. Discounts could also prove as good value if lenders respond to Alastair Darling’s call to pass on the full discount of any Bank rate cut.’