Martin Lewis urges homeowners to lock into two-year fixed rate mortgages now

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MARTIN Lewis is urging homeowners to lock into the lowest two-year fixed-rate mortgage deal now to save hundreds of pounds. The cheapest fixed-rate deal for this length of time is currently down to…

That's a 0.4 per cent drop compared to January this year, when Leeds Building Society offered the lowest rate of 1.39 per cent.

If you're getting confused by all the deals on the market, it might be worth you speaking to a mortgage broker, which will help find the best mortgage for you. Remember, that you'll have to pass the lender's strict eligibility criteria too, which will include affordability checks, and looking at your credit file.

The next best two-year fixed-rate deal is with Lloyds bank, which offers 1.39 per cent, followed by 1.47 per cent with Halifax. If you don't remortgage you'll end up on your lender’s Standard Variable Rate . These have much higher interest rates so you’ll face a significant hike in your monthly repayments.Five-year fixed mortgagesGreat for first-time buyers with small deposits, as rates remain stable when compared to shorter deals.

 

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