Lenders buck the trend with new fixed rates

This week sees the launch of two new fixed rate mortgage deals that buck the recent trend of rising rates.

On Saturday, Stroud & Swindon launched a two-year fixed rate at 4.69% with a £898 fee. Portman then announced that it is also launching a new two-year fix, this time at 4.68% with a fee of £999.

The Stroud deal is available up to 90% loan to value (LTV) and comes with the added incentive of a free basic valuation and free legal work for remortgages. The Portman deal, on offer from Thursday, is available up to 75% LTV with a maximum loan size of £250,000.

Both deals carry Early Repayment Charges during the fixed rate period, however within that time, borrowers have the flexibility to make overpayments without penalty. Portman allows overpayments of up to 10% per annum whilst Stroud & Swindon allows a maximum of 25% of the mortgage balance over the fixed rate period.

Commenting on the new deals, James Cotton, Mortgage Specialist at L&C says, “After a period of rising fixed rates and with the Base Rate currently at 5%, these new deals represent great value. Both arrangement fees may seem high, but for larger loans, the rates should more than compensate.

“However these new deals are not necessarily a sign that fixed rates will start to drop across the board. Following a dip last week, swap rates (which lenders use to find fixed rates) have since risen again, thanks in part to strong inflation figures.”