Homeowners rush to lock in five-year mortgages

Homeowners are rushing to lock in five-year mortgages with a growing number of lenders offering cheaper loans. Banks and building societies are increasingly offering cheaper five-year deals with concerned borrowers jumping on the opportunity to guarantee their repayments with rates expected to surge next year. Nationwide is offering a two-year fixed-rate deal for people remortgaging with 40% equity at 4.04% with a £999 fee. A five-year deal on the same terms is at just 3.59%. Meanwhile, HSBC's two-year rate for borrowers looking to refinance is 3.99% against a five-year rate of 3.53% while Halifax is offering a rate of 3.59% for two years and 3.41% for five. Meanwhile, City traders are betting that the Bank of England's official interest rate will rise from 1.75% to 4.25% by March, which could send today's best mortgage rates 2.5 percentage points higher. 

The Daily Telegraph (05/09/2022)