The Best Fixed Rate Deals Around
There are still some competitive fixed rate deals around, but the headline rates do not tell the whole story. It is important to check the detail and do your sums, and get the deal that suits you.
Fixed rate mortgages seem to have been going up over the last few months, but are there any good deals left to find? Borrowers have to be careful not to just be lured by the headline rate, only to find there are more costs behind it than meet the eye.
One of the best two-year fixed rates on the market currently is from Skipton Building Society. It’s at 6.19%, for a maximum loan-to-value (LTV) of 90%. However, it comes with a stinging fee of £1,098. It actually goes slightly beyond two years, to 31 October 2010. Just behind it, in terms of the headline rate, is a two-year deal from Loughborough Building Society at 6.2%. Again, with an LTV of 90%, the fee payable on this one is only £499. This is a two-year deal from the time you take it out.
Direct Line has a two-year deal lasting until 31 August 2010, at 6.39%, with a fee of £499, but this has the advantage of having an LTV of 95%, so it would suit someone with less of a deposit.
The best of three-year deals comes from Barnsley Building Society at 6.49%. With a maximum LTV of 85%, it lasts until 31 August 2011, and comes with a fee of £750. Comparably, Cheshire Building Society has a deal for three years from signing at 6.49%. This has an LTV of 90%, but comes with a higher fee of £999. Although HSBC’s three-year deal is at 6.59%, its fee is less at £799. It has a maximum LTV of 90% and lasts until 30 September 2011.
When it comes to five-year deals Cheshire BS has the best rate at 6.49%, for a 90% LTV. Lasting for five years from signing, this comes with a £999 fee. Halifax has a five-year deal for 6.59%, with a 90% LTV and a £995 fee. It lasts until 31 August 2013.
With subtle differences in LTVs, the actual length of the deal and the fees involved, it is important to get behind the headline rate and do your sums to make sure you get the best deal.
