There are fewer fixed-rate mortgages under 5%

The number of fixed-rate mortgage products available under 5% are dwindling and set up costs for said items are soaring.

The bottom line is that there are 14 lenders offering a mere 29 fixed-rate products at 5% or below.

On average, application fees cost a staggering £2,062, which has to be weighed up VERY carefully against any savings a low rate may bring you to see if you really are getting the best deal for your personal financial situation.

Moneyexpert.com have supplied figures showing that in July 2006, there were around 112 products offering fixed-rate deals for four or five years at 5% or less.

They concur that with continued rises in interest rates, lenders have reduced many fixed-rate mortgage deals and of those still available today on the market at less than 5% you will be hard pushed to find one who could offer you a longer term than, say two years.

With this in mind, it is more crucial than ever before to calculate low interest/short fixed term versus slightly higher interest/ longer term time to discover which deal really is in your best interest.

There was a drop of 5,700 people noted in the last quarter in the number of people changing their mortgage in the last six months-bringing it to 1.84million.

Today’s latest increase to 5.5% will add roughly £711 per annum to an average £100,000 variable rate mortgage based on a repayment basis.

There are still currently 10 lenders offering UK fixed-rate deals at 5% or less, and they are :-

Bradford and Bingley
Cheltenham & Gloucester
Halifax
Leeds Building Society
Lloyds TSB (Scotland)
Newcastle Building Society
Northern Rock
Norwich & Peterborough Building Society
Portman Building Society
West Bromwich Building Society