Are two-year fixed rate mortgages still a good idea?
Recent data from UK Finance reveals that over four in ten (42%) of all mortgages in January and February were fixed for two years.
Mortgage borrowers are consistently choosing two-year fixed deals, anticipating lower interest rates when they next remortgage.
However, hopes of base rate cuts, influencing fixed-rate mortgage prices, have been tempered in recent weeks.
And initial expectations of six or seven base rate cuts this year have dwindled, with forecasts now predicting only two or three.
It would be good to get your thoughts on whether:
- Is opting for a more expensive two-year fix over a cheaper five-year one still the best choice for home buyers and those remortgaging?
- What are you recommending to your clients and why?