Are the best fixed rate mortgages available now?

With interest rates at historic lows of only 0.5 per cent many consumers are deciding to apply for fixed rate mortgages as it has been well documented that interest rates aren't going to fall any further. It is however difficult to know the best time to go for a fixed rate mortgage. You can never be sure when we have reached the bottom of the economic cycle.

Many consumers have decided to lock into a fixed rate mortgage to benefit from the low interest rate before the base rate starts to rise again. However to find the best fixed rate it is best to shop around as rates are varying greatly. This is down to individual lenders trying to maximise profits while remaining fairly competitive but also the cost of funding fixed rate mortgages has increased recently as a consequence of the low base rate. Many consumers on tracker mortgages are enjoying zero or very low interest which is costing the banks money or making them no money so they of course will try to recoup the money elsewhere.

The best fixed rate will be for those able to put up a large deposit that will mean at least 25% deposit, if you can afford 40% then you will likely be offered one of the best fixed rate mortgage deals in the country. Also available to homeowners who have these amounts in equity however as house prices have fallen so sharply and are still doing so it is worth checking if you would still qualify for these rates.

From the advice I have read it is best to look for that best fixed rate mortgage now rather than later as although rates aren't likely to climb to higher levels for some time as house prices continue to fall homeowners will continue to lose equity in their home which means they will qualify for fewer of the best fixed rate mortgage deals.

It is always advisable to get professional advice, mortgages brokers that offer whole of market advice will be search all of the mortgage offers on the market as well as be able to give you advice and answer queries you have about the mortgage market and the application process.