Lenders say fixed-rate mortgages are increasing in popularity, with new offers from Nationwide and Barclays.
Barclays says the recent string of interest rate rises has seen the number of applications for fixed-rate mortgages double from 11 per cent in January this year to 21 per cent in July. It predicts that the level of applications for fixes will increase to at least 26 per cent this month.
Barclays is offering a two-year fixed rate at 5.29 per cent at 95 per cent loan to value and a five-year fixed rate at 5.75 per cent also at 95 per cent loan to value. Both offer the options of payment breaks and the ability to repay part of the loan without charge.
Nationwide's new fixed rates are 0.2 per cent lower than its existing fixed rates. It is offering a two year fixed rate from 5.19 per cent, a three year fixed rate from 5.49 per cent and a five-year fixed rate from 5.59 per cent. The loans are available to all borrowers up to 95 per cent LTV.
Barclays and Woolwich head of mortgages Richard Saulet says: “With rates expected to rise by a further 0.25 per cent this year, fixed-rate products will be ideal for borrowers looking for peace of mind.”