View more on these topics

Five-year fixed switch pays off

First-year savings from switching to a five-year fixed-rate mortgage have more than quadrupled over the last year.

Your Move remortgage index, which tracks first-year savings from switching from a 100,000 standard variable rate, says savings from a switch to a best-buy five-year fixed rate are up by 6.6 per cent from last month and by 438 per cent from 12 months ago.

But first-year savings from switching to a best-buy two-year fixed rate remained the same this month and savings from a three-year fixed rate fell by 3 per cent.

The index found that first-year discounted variable rate savings are falling or remaining the same. Savings from switching to a best-buy two-year discounted variable rate fell by 4 per cent this month, with three and five- year rates unchanged.

Over the past year, savings from switching to a five year discounted rate are up by 3 per cent, with two-year rates down by 9 per cent and five-year rates down by 2 per cent.

Your Move remortgage analyst Jon Round says: “Five-year fixed-rate deals are getting more attractive for people remortgaging relative to shorter-term deals. Lenders are enticing borrowers with better offers in an attempt to increase business. Canny remortgagers can take advantage of this.”

Belgravia Insurance Consultants consultant Paul White says: “Savings made by remortgaging can vary greatly, depending on the deal, but other issues have to be taken into account, such as legal costs.”


A bull case for US equities?

Neptune video: a bull case for US equities?

Watch Felix Wintle, head of US equities at Neptune, discuss why he believes US equities are in a structural bull market and the key factors that can drive the S&P 500 higher.

In the video, Wintle addresses the following:

• The US market and why — despite equities rising from 2009 — he believes the structural bull market only started in 2013
• Key economic and corporate factors that can drive the S&P 500 higher
• Investment themes and sectors offering exposure to the domestic recovery


News and expert analysis straight to your inbox

Sign up


    Leave a comment