Fixed-rate mortgage deals reach record lows in the New Year as Lenders seek to make up for lost time

Fixed-rate mortgage offerings are more attractive than ever as the price war amongst high street lenders subsists into 2015, and the sense of competition amongst rivals remains as fiery as ever.

Each lender is seeking to get off to an early flyer in 2015, especially when the previous yearís lending constrictions and diminishing buyer activity is considered, and now is the time to reignite the market with an interest rate hike not in the offing any time soon.

The confidence a fixed-rate term instils within borrowers has earmarked them as the choice mortgage deal and rates have been repeatedly slashed to new record lows as lenders seek to capitalise on their popularity.

Such is the extent of their appeal that various banks have been promoting 10-year fixed rate deals, with market conditions seemingly perfect for lengthy fixed deals, given waning fears over an interest rate hike, falling unemployment levels and low inflation.

HSBC, and its subsidiary First Direct, are the providers of the newest market-leading fixed-rate mortgage deals, with the former currently marketing what is being heralded as the lowest ever 2-year fixed-rate deal at 1.29%, attached with a requirement for borrowers to lay down a 40% deposit and a £1,499 fee.

In addition to this, HSBC has pledged to match any high street lenderís 2 or 5 year fixed-rate deals, available for home loans with LTV ratios of 70-90%, and attached with booking fees of 1,499. These fixed-rate loans also entail an early
repayment charge, but existing HSBC Advance & Premier customers will receive £300 of the booking fee.

First Direct meanwhile has once again cornered the 5-year fixed rate mortgage market, with its most generous loan recently rolled out at 2.39%, outshining the previous best value deal ever to be placed on the market by a margin of 0.05%. However, this generous interest rate is somewhat dulled by the £1,450 booking fee it comes dauntingly attached with.

With expectations that continued growth in employment levels will yield to meaningful real wage increases, a base rate hike is anticipated shortly after the general election and thus it seems that now would be a frugal time to engage in the housing market.

On the back of tighter lending criteria and the bestowing of greater powers to the Bank of England, house prices plummeted in the last 3 months of the year having grown at an exceptionally fast rate in the first 9 months of the year.
Cuts to stamp duty are expected to further reduce the amount buyers will pay for properties, as the government seek to catalyse greater numbers of completions in light of a ërippleí effect stemming from London to its surrounding regions leading to skyrocketing house price increases of up to 25% in some areas over the course of 2015.

Cuts to stamp duty are expected to further reduce the amount buyers will pay for properties, as the government

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