Since the tail end of 2014 some of the most favourable mortgage deals and fixed rates have been available than for many years.

hand-house-mediumRecently mortgage experts have begun to alert borrowers that they may need to act fast to secure the best deals on the mortgage market as they won’t be around forever. Now these record-breaking rates are being pushed up as the ‘swap rates’ at which banks lend to each other have risen.

“Over the last couple of weeks the best five-year fixed rate mortgage product has risen from 1.99% to 2.14%, as lenders face increased wholesale borrowing costs.” – Nic Parkhouse, What House

There is still a great deal of competition within the mortgage industry meaning it is still possible to secure a very advantageous rate as lenders compete for business.

Property prices are likely to rise moderately in the future so it is likely property prices and mortgage rates are at their best for buyers now than they may be in the next year or so. But nothing is set in stone and it is difficult to predict what will happen in national and international money and property markets with any real certainty or accuracy.

The Bank of England’s latest inflation report indicated interest rates are anticipated to begin rising in mid-2016, but volatility in the European money and property markets may influence the ‘swap rate’ and therefore the available mortgage rates sooner than that.

At its peak (or trough) it was possible to get a 5 year fixed mortgage deal below 2%, this does not seem to be available any more as some of the best rates being quoted on the market now are around 2.14% or 2.19%.

Andrew Fagg Mortgage AdvisorIf you would like to find out more about what is happening in the mortgage industry or would like to arrange a mortgage appointment please speak to Andy Fagg from Davenport Financial who has been advising Mackenzie Smith clients on mortgages for 20 years. Andy can look at a range of mortgages from a range of borrowers to find the right deal for you. Email or call 07720 355866.

Rate of the Week

Homemover 5 Year Fixed Scheme Until 30/09/20

Initial rate:  2.19% fixed rate

Subsequent rate:  4.00% variable rate

For loans of up to 60% of property value

The overall cost for comparison purposes is: 3.4% APR

Rates quoted are available subject to status. Additional fees and charges apply, please contact Davenport Financial Management for a personal illustration. 


Davenport Financial Management Limited is authorised and regulated by the Financial Conduct Authority. Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.