A new five-year fixed-rate mortgage product has been launched by Newcastle Building Society.
The new mortgage is available up to £500,000, offering a 95 per cent Loan to Value. Newcastle hopes that the product will appeal to those who are uncertain about future interest rate rises.
“This product offers buyers the opportunity to fix their repayments for five years with the certainty that there will be no change; regardless of Bank of England decisions,” explains Steve Urwin of Newcastle Building Society.
Fixed-rate mortgages have proven popular in light of a rising interest rate, which currently sits at five per cent. Borrowers opt for these types of mortgage to avoid the risks of future interest rate hikes.
However experts speculate that fixed-rate deals are set to fall in popularity at the expense of cheaper variable rate deals, as consumers look for the best mortgage rate.
Figures indicate that the average mortgage fixed interest rate was 5.24 per cent in September, the highest level since June 2005.
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