• Mortgage Tree

Borrowers Brexit-proof their mortgage with long-term fix

More borrowers are seeking peace of mind amid the uncertainty of Brexit by fixing their mortgage rate for longer periods.

That is according to Yorkshire Building Society, which has reported a 44% increase in the number of borrowers choosing five-year fixed-rate mortgages in December 2018 compared to same month in 2017.

Seven year and a ten year fixed-rate deals were also rising in popularity as homeowners attempted to secure a static mortgage rate which will remain the same regardless of what happens during and after Britain’s exit from the EU.

How fixed rates work

Fixed-rate deals are currently the more popular option for mortgage borrowers. Data released by Experian in December revealed 89% of people searching for home loans were looking at fixed-rates rather than variable or tracker mortgages, which have rates which go up and down according to the Bank of England base rate.

Fixing your rate means, no matter what is happening to the Bank of England’s rate, the interest you pay on your mortgage will remain the same until the end of the deal.

Janice Barber, mortgage manager at Yorkshire Building Society, said it had noticed a significant rise in the number of people taking advantage of competitive longer-term fixed rate deals.

“While homebuyers’ reluctance to purchase a house during these uncertain times is cooling the housing market, borrowers are rushing to secure new deals that will see them through Brexit and beyond,” she said.

However, she also explained the rush to sign up to long-term fixes might also indicate borrowers were expecting rates to rise.

Securing a deal in advance

Barber added: “Borrowers looking to remortgage this side of summer could start the remortgage process now should they want to take advantage of competitive low rates and get peace of mind that their home loan is arranged regardless of any Brexit outcome.”

The Yorkshire allows potential borrowers to reserve a mortgage deal up to six months in advance. This means anyone whose home loan is due to mature in the coming months can take advantage of today’s deals.

Article by Kate Saines for www.whatmortgage.co.uk

#brexit #mortgageadvice #mortgageadvisor #fixedrates #mortgagebroker #fixedratemortgage

Here's what our clients say...

“Mortgage Tree showed me how to improve my credit rating as I had a few issues with my credit previously. As a result of their excellent advice I have now secured a mortgage at a great interest rate. They also helped me sort out life & critical illness cover which offers great protection for myself and my family. Mortgage Tree offers a fantastic service and I recommend them wholeheartedly.”

Charlotte - Leeds


Mortgage Calculator

Mortgage Tree - Mortgage Advisors York - Services & Standards

Mortgage Tree offers a nationwide mortgage broking service from our base near York, North Yorkshire. We specialise in mortgages and insurance. Whether you are a first time buyer or you are a buy to let investor with multiple properties, Mortgage Tree will ensure that you get the best products available.

We are a Whole Of Market broker which means that we will choose the best, most suitable mortgage for you from the hundreds available on the UK mortgage market. Our network also gets special discounted deals from lenders available only to our network.

We also provide insurance cover that will give you & your loved ones a blanket of protection that is so vital. We will endeavour to give you the best service that we can at all times.

Mortgage Tree is an appointed representative of Julian Harris Mortgages ltd which is authorised and regulated by the Financial Conduct Authority. Our FCA no. 304155

The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk



Our Address...

Stay Connected...

© 2020 Mortgage Tree

Built by Elle Nelson Design

Mortgage Tree

Blake House

18 Blake St



01904 263012