The Bank of England base rates didn't rise in May, but that hasn't stopped mortgage lenders increasing their own rates.
Although a few rates have gone up, borrowing remains close to as cheap as it's ever been.
With continued expectation or a rate rise, securing your rate will see you through at least some of it without a shock rise in mortgage repayments.
To help you out, we've highlighted the best two, five and 10-year deals on the market.
Why go for a fixed rate mortgage?
Fixed-rate mortgages are very popular, and it’s easy to understand why.
They provide you with certainty – you know that for the length of your fixed-rate period, your repayments will remain exactly the same each month.
However, knowing that you want to fix your mortgage rate is only half the decision. You need to work out how long you want to fix for too.
Two-year fixed rate mortgages are the cheapest, but you only have certainty about your mortgage payments for a brief period of time.
If you want the added security of a five-year fixed rate, you’ll pay a premium in the form of a higher interest rate.
Long-term fixed rates also come with much higher Early Repayment Charges, so you might need to take that into account too.
Top two-year fixed rate mortgages
First, let’s look at the two-year fixed rate mortgages with the lowest rates around. Be warned, nabbing a tiny interest rate usually means you’ll have a stump up a hefty product fee.
We've based our calculations on a property worth £250,000 for a 25-year term. If you want to buy a property worth more than this or are a first home buyer you may not be able to access these deals.
|
Lender |
LTV |
Rate |
Fee |
ERCs |
|
60% |
1.35% |
£1,149 |
3% until the end of the fixed period. |
|
|
65% |
1.35% |
£1,149 |
3% until the end of the fixed period. |
|
|
70% |
1.35% |
£1,149 |
3% until the end of the fixed period. |
|
|
75% |
1.35% |
£1,149 |
3% until the end of the fixed period. |
|
|
80% |
1.35% |
£1,149 |
3% until the end of the fixed period. |
|
|
85% |
1.82% |
£495 |
2% in first year, then 1% until the end of fixed period. |
|
|
90% |
1.82% |
£495 |
2% in first year, then 1% until the end of fixed period. |
|
|
95% |
2.89% |
£1,484 |
2% in first year, then 1% until the end of fixed period. |
As you can see, the rates on the top deals tend to command a big fee. So, we’ve also picked out the best rates on two-year deals with a fee of under £500.
|
Lender |
LTV |
Rate |
Fee |
ERCs |
|
60% |
1.41% |
£495 |
2% in first year, then 1% until the end of fixed period. |
|
|
65% |
1.49% |
£490 |
3% in first year, then 2% until the end of fixed period. |
|
|
70% |
1.49% |
£490 |
3% in first year, then 2% until the end of fixed period. |
|
|
75% |
1.49% |
£490 |
3% in first year, then 2% until the end of fixed period. |
|
|
80% |
1.64% |
£490 |
3% in first year, then 2% until the end of fixed period. |
|
|
85% |
1.82% |
£495 |
2% in first year, then 1% until the end of fixed period. |
|
|
90% |
1.82% |
£495 |
2% in first year, then 1% until the end of fixed period. |
|
|
95% |
3.19% |
£495 |
2% in first year, then 1% until the end of fixed period. |
Compare mortgages with loveMONEY
Five-year fixed rate mortgages
If you want to go for a longer-term fixed rate deal, then you may prefer a five-year fixed rate deal.
While you enjoy that security for longer, you may have to pay a premium in terms of a higher rate. You also have significant Early Repayment Charges to consider should you wish to leave the deal early.
We've based our calculations on a property worth £250,000 for a 25-year term. If you want to buy a property worth more than this or are a first home buyer you may not be able to access these deals.
|
Lender |
LTV |
Interest rate |
Product fees |
ERCs |
|
60% |
1.83% |
£1,995 |
2% until 30 June 2019, then 1% until 30 June 2020 |
|
|
65% |
1.89% |
£490 |
3% in first year, then 2% until the end of fixed period |
|
|
70% |
1.89% |
£490 |
3% in first year, then 2% until the end of fixed period |
|
|
75% |
1.89% |
£490 |
3% in first year, then 2% until the end of fixed period |
|
|
80% |
2.04% |
£999 |
1% until the end of the fixed period |
|
|
85% |
2.34% |
£999 |
3% until 2023 |
|
|
90% |
2.34% |
£999 |
3% until 2023 |
And now let’s take a look at the best deals with a fee of under £500.
|
Lender |
LTV |
Interest rate |
Product fees |
ERCs |
|
60% |
1.89% |
£490 |
3% in first year, then 2% until the end of fixed period. |
|
|
65% |
1.89% |
£490 |
3% in first year, then 2% until the end of fixed period. |
|
|
70% |
1.89% |
£490 |
3% in first year, then 2% until the end of fixed period. |
|
|
75% |
1.89% |
£490 |
3% in first year, then 2% until the end of fixed period |
|
|
80% |
2.19% |
£490 |
3% in first year, then 2% until the end of fixed period |
|
|
85% |
2.39% |
£490 |
3% in first year, then 2% until the end of fixed period |
|
|
90% |
2.39% |
£490 |
3% in first year, then 2% until the end of fixed period |
Looking for a mortgage? Compare rates
Ten-year fixed rate mortgages
A ten-year fixed rate can offer long-term piece of mind and the market is booming.
Again the longer security means a higher rate and significant ERCs to consider should you wish to leave the deal early.
We've based our calculations on a property worth £250,000 for a 25-year term. If you want to buy a property worth more than this or are a first home buyer you may not be able to access these deals.
Here are the top rates at the moment - please note that this list excludes deals only available to existing borrowers, those remortgaging or first-time buyers.
|
Lender |
LTV |
Interest rate |
Product fees |
ERCs |
|
50% |
2.49% |
£999 |
5% until Jun 2019, 3% until 2021, 1% until 2023. | |
|
60% |
2.49% |
£0 |
3% in first year than 2% until end of fixed period. | |
|
65% |
2.59% |
£999 |
5% until Jun 2019, 3% until 2021, 1% until 2023. |
|
|
70% |
2.64% |
£995 |
5% until September 2022, then 4% until 2024, 3% until 2026, 2.5% until 2027 and 1.5% until 2028 |
|
|
75% |
2.64% |
£995 |
5% until September 2022, then 4% until 2024, 3% until 2026, 2.5% until 2027 and 1.5% until 2028 |
|
|
80% |
2.79% |
£999 |
5%, 5%, 3%, 3%, 3%, then 1% until end of fixed period. |
|
|
85% |
2.79% |
£999 |
5%, 5%, 3%, 3%, 3%, then 1% until end of fixed period. |
|
|
90% |
3.25% |
£999 |
5%, 5%, 3%, 3%, 3%, then 1% until end of fixed period. |
As you can see, although these best buy deals offer eye-catching low rates, many also carry hefty fees. So here are the best 10-year fixed rate deals with fees under £500.
|
Lender |
LTV |
Interest rate |
Product fees |
ERCs |
|
50% |
2.49% |
£0 |
3% in first year than 2% until end of fixed period. |
|
|
60% |
2.49% |
£0 |
3% in first year than 2% until end of fixed period. |
|
|
65% |
2.64% |
£0 |
3% in first year than 2% until end of fixed period. |
|
|
70% |
2.64% |
£0 |
3% in first year than 2% until end of fixed period. |
|
|
75% |
2.64% |
£0 |
3% in first year than 2% until end of fixed period. |
|
|
80% |
2.89% |
£0 |
3% in year 1 then 2% until end of fixed period |
|
|
85% |
3.19% |
£0 |
5% until June 2019 the 4%, 3%, 2%,1% until 2023 |
|
|
90% |
3.99% |
£0 |
7% for four years, then 6%, 5%, 4%, 3%, 2% and 1% until end of fixed period |
This loveMONEY article is regularly updated