Cheap fixed rate mortgages set to entice new buyers

Barclays fixed rate mortgageBarclays recently launched a 10-year fixed rate mortgage with an interest rate 2.99 per cent. This is the lowest rate ever offered on a loan of this type.

To take advantage of the deal borrowers will need to stump up a deposit of 40 per cent as well as swallow an application fee of £999.

The market for 10-year fixed rate mortgage loans is becoming a competitive one. Santander and TSB offer fixed rate mortgages at 3.44 per cent. Among other lenders First Direct, Nationwide and the Leeds Building Society also over fixed rate deals.

Nationwide in fact has undercut Barclays’ interest rate for a 10 year fixed rate mortgage, but only for its existing customers. It’s is offering a mortgage at 2.94 per cent with a £999 fee or a no-fee deal at 3.09 per cent.

Interest rates are low at present but likely to increase later in the year according to economists, adding to the appeal of these deals.

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