Homeowners opt for short-term fixed-rate mortgages

Homeowners are turning to one-year fixed-rate mortgages as a short-term solution while waiting for interest rates to decrease. Precise Mortgages has released a one-year fix at 5.44% with an 85% loan-to-value (LTV) and a 1% fee. Other lenders, such as Barclays, Santander, and Leeds Building Society, also offer one-year fixes. Santander reports that approximately 10% of its customers have chosen one-year deals since their introduction a year ago. Aaron Strutt from mortgage broker Trinity Financial suggests that a one-year fix is a good option for those planning to move or nearing the end of a deal, expecting rates to drop soon. 

The Sunday Times (26/05/2024)