Average 5 year fixed rate:
Today: 4.86%
Six months ago: 4.89%
April 2011: 5.59%
April 2010: 5.87%
5 year swap rate:
Today: 1.70%
Six months ago: 2.99%
April 2011: 2.99%
April 2010: 2.83%
Louise Holmes, spokesperson for Moneyfacts.co.uk, commented:
“Average rates for five year fixed rate deals have been falling steadily for the past couple of years. Fixed rate mortgages offer the reassurance of a set monthly payment and can be beneficial when planning financial budgets, as the repayment amount remains the same over the duration of the term.
“The cost of funding through the swap rate market has also decreased dramatically, causing a knock-on effect of lenders offering low rates on long-term mortgages.
“Interest rates are predicted to stay at the historical low of 0.50% for the foreseeable future. Borrowers would be wise to take advantage of the low mortgage rates, however, as lenders will begin increasing product rates once interest rates rise.”
