Getting 5 years is not a ‘Sentance’
As the country waits to fully understand the impact of the inevitable austerity measures, many homeowners will be reviewing their own personal balance sheet and searching for ways to reduce outgoings and achieve peace of mind.
Kim Rebecchi, Sales and Marketing Director at Leeds Building Society explains, "We are currently in a period of uncertainty, with the Government yet to announce full details of how it will reduce the UK's deficit, the threat of a double-dip recession and house prices beginning to fall.
"What we do know, however, is that we currently have historically low interest rates, the latest CPI figure for July is currently above the Bank of England's target, RPI is 4.8% and the credit crunch, which started in 2007, isn't over.
"Furthermore, Andrew Sentance, a member of the Monetary Policy Committee (MPC), has voted for an increase to Bank Base Rate of 0.25% at the last three meetings. Whilst he is currently a lone voice at the MPC, we know that interest rates cannot stay this low forever.
"Therefore, in the current climate, locking into a fixed rate deal for a 5 year period has many benefits, including certainty, peace of mind and the ability to limit monthly outgoings on what is usually the biggest household expense, the mortgage.
"At Leeds Building Society we recognise that many customers prefer certainty and our fixed rate deals have proved the most popular. That is why we have launched a market leading 5-year fixed rate from only 3.94%, which compliments our highly competitive 2 and 3-year fixed rate deals from only 2.99% and 3.65% respectively.
"Many customers will welcome the ability to budget with certainty and limit their monthly outgoings, particularly existing homeowners who may be coming to the end of their current deal. Furthermore, all of Leeds Building Society's fixed rate mortgages are fully portable, so should a customer's circumstances change and they wish to move home during the fixed rate period, they can take their excellent fixed rate with them."