{"id":5027197,"date":"2019-11-01T09:15:52","date_gmt":"2019-11-01T09:15:52","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=5027197"},"modified":"2019-11-01T09:15:52","modified_gmt":"2019-11-01T09:15:52","slug":"borrowers-favour-five-year-fixed-rates-over-shorter-term-deals","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/zh-hk\/2019\/11\/01\/borrowers-favour-five-year-fixed-rates-over-shorter-term-deals\/","title":{"rendered":"Borrowers favour five-year fixed rates over shorter-term deals"},"content":{"rendered":"<p><strong>The Nationwide House Price Index has revealed that over 95% of mortgage borrowers have opted for a fixed-rate mortgage in the past few months, and half of those were five-year fixed deals.<\/strong><\/p>\n<p>There has been a significant drop in five-year fixed mortgage rates, with the average rate falling 0.19% in the last 12 months. The gap between the average two and five-year fixed rates has narrowed, encouraging borrowers that typically jump from one short-term rate to another to consider <a href=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2019\/09\/19\/more-choice-for-borrowers-as-number-of-five-year-fixed-rates-doubles\/\">fixing for longer<\/a>.<\/p>\n<p>According to Moneyfacts.co.uk, the difference between the average five and two-year fixed rate on a 95% loan-to-value (LTV) is currently only 0.33%, and the gap is at its narrowest on a maximum 75% LTV at 0.27%.<\/p>\n<p>Darren Cook, finance expert at Moneyfacts.co.uk, said: \u201cIt seems that competition within the five-year fixed-rate mortgage sector is pushing the average rate down closer towards the two-year fixed average rate. As a result, the difference between these two average rates now stands at 0.31%, which is 0.11% lower than it was a year ago.&#8221;<\/p>\n<h4>Reduced monthly repayments<\/h4>\n<p>Moneyfacts highlights that with the gap between the two and five year fixed rates narrowing, the difference in the <a href=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2019\/09\/20\/landlords-boosted-by-falling-buy-to-let-mortgage-costs\/\">monthly repayments<\/a> is reducing, too. On a repayment mortgage of \u00a3250,000 over 25 years, the average two-year fixed rate repayment stands at \u00a31,115.26, while the average five-year repayment is \u00a31,154.56. The difference of \u00a339.30 per month for an extra three years of financial security will be attractive to many borrowers.<\/p>\n<p>Borrowers might be facing economic uncertainty, but falling rates on longer-term mortgages are cushioning the blow as they choose to lock in for longer.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Nationwide House Price Index has revealed that over 95% of mortgage borrowers have opted for a fixed-rate mortgage in the past few months, and half of those were five-year fixed deals. There has been a significant drop in five-year fixed mortgage rates, with the average rate falling 0.19% in the last 12 months. The<a class=\"excerpt-read-more\" href=\"https:\/\/www.buyassociationgroup.com\/zh-hk\/2019\/11\/01\/borrowers-favour-five-year-fixed-rates-over-shorter-term-deals\/\" title=\"ReadBorrowers favour five-year fixed rates over shorter-term deals\">&#8230; Read more &raquo;<\/a><\/p>\n","protected":false},"author":3380,"featured_media":16026,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[108],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/zh-hk\/wp-json\/wp\/v2\/posts\/5027197"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/zh-hk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/zh-hk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/zh-hk\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/zh-hk\/wp-json\/wp\/v2\/comments?post=5027197"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/zh-hk\/wp-json\/wp\/v2\/posts\/5027197\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/zh-hk\/wp-json\/wp\/v2\/media\/16026"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/zh-hk\/wp-json\/wp\/v2\/media?parent=5027197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/zh-hk\/wp-json\/wp\/v2\/categories?post=5027197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/zh-hk\/wp-json\/wp\/v2\/tags?post=5027197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}