Mortgage borrowers favour 5yr fixed deals

Mortgage borrowers in Northern Ireland and the rest of the UK are turning to 5-year fixed products, with a 73% increase in the past year.

Home buyers and remortgagors have traditionally favoured 2-year fixed deals, which have lower fees, and also allows them to review their options fairly regularly. However, borrowers are increasingly looking to the longer term fixed deals for the certainty they give. While the current record low interest rates have not changed in a long time, and are not expected to increase for another 2 to 3 years by many analysts, mortgage borrowers are starting to sense that it can't go on forever. Lenders have responded by offering an increased number of competitive 5-year fixed products.

Some borrowers are however betting on the predictions that interest rates won't increase until 2015 or 2016, and sticking with tracker products. Those borrowers that do opt for the slightly more expensive 5-year deals will save themselves some money in solicitor fees compared to the mortgage borrowers who are switching products every two years and have to register the switch of the mortgage against their property.

If you are remortgaging your house, or taking out a new mortgage to fund a property purchase, contact one of the property solicitors at Wilson Nesbitt in Belfast for information on the conveyance process involved by calling 0800 840 9290. Or click here for more information on property conveyancing in Northern Ireland.