Top Ten Fixed Rate Mortgages

AOL Money this week revealed what it considers to be the 10 best fixed-rate mortgage deals in the UK, arguing that despite initially higher charges, fixed-rate mortgages provide peace of mind over the long term.

Let’s take a look at the recommendations
When it comes to two-year fixed rate mortgages, HSBC’s is highly recommended thanks to its 2.54 per cent interest rate provided you can find a 40 per cent deposit and pay the £1,999 fee. Yorkshire Building Society offers 3.19 per cent with a 25 per cent deposit and a fee of £495, or a £295 fee with a rate of 3.24 per cent. The Co-op offers a two-year fixed rate mortgage deal at 3.99 per cent, with no arrangement fee. There’s also a good choice of three-year fixed rate mortgages, such as Chelsea Building Society’s 2.94 per cent on a loan-to-value (LTV) of up to 70 per cent albeit with a £1,695 fee. Again, Yorkshire Building Society’s alternative proves competitive, with a 3.29 per cent rate, LTV of up to 75 per cent and a fee of just £495. Mortgage-seekers who can only find a 10 per cent deposit are advised to head for the Post Office 5.29 per cent three-year fixed rate deal, with a £995 fee. If customers opt for a 5.59 per cent rate, they only have to pay £495. In the field of five-year fixed rate mortgages, Chelsea Building Society offers the lowest rate at 3.49 per cent, with a £1,495 fee and a 30 per cent deposit required. First Direct is only charging £499 for the same rate, although a 35 per cent deposit is needed. Yorkshire Building Society offers a five-year deal with a fee of £995 and borrowers with just a 15 per cent deposit can avail themselves of a Post Office deal at 4.39 per cent, with a fee of £995.

Published on 9 March 2020

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