Providing expert mortgage advice for over 28 years.
Providing expert mortgage advice for over 28 years.
As of October 2024, we’re seeing a steady decrease in mortgage rates, which is good news for anyone thinking about getting a new mortgage. The average rate for a two-year fixed mortgage has dropped to 4.93%, and some lenders are offering rates as low as 3.94%. This shows the market is getting more competitive.
For those considering long-term options, the lowest available five-year fixed mortgage rate is now 3.70%, which is slightly lower than last months 3.77%. If you’re looking for long-term financial security, it could be a suitable time to explore a five-year fixed-rate mortgage.
As we head into 2025, many experts predict that the Bank of England base rate could remain steady or even decrease slightly if inflation continues to ease. This makes it a good time to consider a longer-term mortgage, as fixed-rate deals are currently offering better rates.
A fixed-rate mortgage can provide peace of mind by helping protect you from any potential rate increases down the line.
Whether you’re looking for a new mortgage deal or thinking about remortgaging, these rate changes suggest that now might be a suitable time to explore fixed-rate options.
Fixing your mortgage rate is all about stability and peace of mind. When you fix your mortgage rate, you’re locking in a specific interest rate for a set period—whether it’s for a few years or even longer. This means you’ll know exactly what your monthly mortgage payments will be, no matter what happens with the Bank of England base rate or broader market conditions.
Choosing the right type of mortgage is crucial for your financial stability. A fixed-rate mortgage means your monthly repayments will stay the same for a set period, giving you protection from interest rate rises. This is beneficial if you prefer predictable payments and want to avoid any surprises.
On the other hand, a variable rate mortgage works differently. It’s tied to your lender’s standard variable rate (SVR), which can fluctuate based on market conditions. This means your payments could go up or down depending on how the lender adjusts their rates in line with the Bank of England base rate.
With a standard variable rate mortgage, you might enjoy lower monthly repayments when rates drop, but the trade-off is the risk of higher payments if rates rise. Some homeowners choose this type of mortgage when they think rates will fall, but it’s important to be aware of the potential risks.
A tracker mortgage is another type of variable rate deal that tracks the Bank of England base rate plus a small percentage. While these deals can start with lower interest rates than fixed ones, they carry the same risk of rising payments if the base rate increases. The choice between a fixed or variable mortgage depends on how much risk you’re comfortable taking and what your long-term financial goals are.
A 2-year fixed mortgage gives you some flexibility over the short term. After two years, you have the option to remortgage, but this deal doesn’t offer the same security as a longer-term fix.
A 5-year fixed mortgage provides long-term stability, offering peace of mind with consistent payments over five years. This makes it a popular choice for homeowners who want to avoid frequent remortgaging.
The decision between a 2-year fixed mortgage or a 5-year fixed mortgage depends on your personal situation. Consider your risk tolerance, your financial situation, and your future plans.
If you’re looking for maximum stability, you might want to consider a 10-year fixed mortgage. While the initial rates for longer-term mortgages can be higher, locking in for a decade gives you peace of mind in a changing market.
This type of mortgage is ideal for homeowners who plan to stay in their homes for a long time and want to protect themselves from interest rate rises beyond 2025.
Fixed-rate mortgages remain a popular choice as we head into 2025, offering financial stability and protection from market volatility. With rates falling, now could be a good time to explore options for a 2-year or 5-year fixed deal.
For those seeking long-term peace of mind, a 10-year fixed mortgage might be a suitable choice.
When deciding between a short-term or long-term deal, we will compare 75 lenders, explain any fees involved, and carefully assess your financial situation. Our mortgage advisers are here to help you find the right option for your financial future.
