…5.29% 10yr fixed rate

Whilst short term mortgage deals are getting increasingly expensive as the financial liquidity crisis rumbles on, a suprising winner is the long-term fixed rate.  Borrowers looking for a mortgage of 60% loan-to-value or less can now apply for a 10 year fixed rate mortgage at 5.29% with £995 arrangement fee (free valuation & free legal’s on remortgages).

In previous years the lowest the 10 year fixed rate mortgages came down too was 4.67% and they have been over 6% within the last 12 months.  Furthermore, it’s commonly regarded that the neutral interest rate in our economy (that neither stimulates nor cools activity) is between 5% and 5.5%.  So fixing for the long term at 5.29% looks like a very fair proposition.