Mortgages: don’t be dazzled by super-low interest rates

Ultra-low fixed-rate deals can look very attractive, but the no-fee higher rate can often make for a better bargain

Headline-grabbing mortgage rates have been coming thick and fast in recent weeks. It started with the first sub-1% deal in several years, and has continued with lenders launching their cheapest home loans ever. As of last week it’s been possible to tie-in for two years at just 0.94%, or fix for five at as little as 1.06%.

“A number of providers have launched eye-catching sub-1% rates in recent weeks to tempt new borrowers,” says Eleanor Williams at financial data provider Moneyfacts. “This indicates an appetite to lend from mortgage providers, and reflects an ability to price low while we remain in a low interest rate environment.”

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from The Guardian https://ift.tt/3hLxdOY