{"id":5025489,"date":"2019-08-27T09:10:34","date_gmt":"2019-08-27T08:10:34","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=5025489"},"modified":"2019-08-27T09:10:34","modified_gmt":"2019-08-27T08:10:34","slug":"intense-competition-drives-down-five-year-fixed-rates","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-hk\/news\/intense-competition-drives-down-five-year-fixed-rates\/","title":{"rendered":"Intense\u00a0competition\u00a0drives down five-year fixed rates\u00a0\u00a0"},"content":{"rendered":"<p><strong>Increasing\u00a0competition between lenders in the five-year fixed rate market has\u00a0triggered\u00a0a drop in the average\u00a0five-year fixed\u00a0mortgage\u00a0rate\u00a0from 2.84% to 2.79%.<\/strong><\/p>\n<p>According to Moneyfacts.co.uk, the intense competition between lenders has led to the fall in rates, and the difference between the average two and five-year fixed mortgage rates has reduced by 0.03% to just 0.32% in the past three weeks.<\/p>\n<p>Lenders are, it seems, responding to a fall in SWAP rates at the beginning of August (the rate at which banks and lenders use to hedge themselves against interest rate fluctuations). The five-year SWAP rate has dropped to 0.60%, while the two-year rate sits at 0.66%, which means it is cheaper for mortgage lenders to hedge themselves on a five-year mortgage and are therefore more inclined to promote these to borrowers.<\/p>\n<h4>Largest rate reduction at 80% loan-to-value (LTV)<\/h4>\n<p>Borrowers looking for an 80% LTV mortgage\u00a0will see the\u00a0most significant reduction, as rates have fallen 0.08% to 2.79% since the beginning of August. But this has been closely followed by a fall of 0.06% in\u00a0both\u00a0the 70%\u00a0and 85% LTV sectors. It\u2019s only first-time buyers\u00a0with a small deposit\u00a0that won\u2019t feel the benefit,\u00a0as the average rate\u00a0for a 95% LTV mortgage\u00a0has\u00a0stayed\u00a0stationary at 3.63% so far this month.<\/p>\n<p>Darren Cook, finance expert at Moneyfacts.co.uk, said:<\/p>\n<blockquote><p>&#8220;The cut to five-year fixed mortgage rates will be welcome news to those borrowers who are looking to lock into a slightly longer period and may be unsure which direction interest rates will move next amid the ongoing economic uncertainty. What will be certain for these borrowers is that their monthly mortgage repayment will remain unchanged for the next 60 months.&#8221;<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Increasing\u00a0competition between lenders in the five-year fixed rate market has\u00a0triggered\u00a0a drop in the average\u00a0five-year fixed\u00a0mortgage\u00a0rate\u00a0from 2.84% to 2.79%. According to Moneyfacts.co.uk, the intense competition between lenders has led to the fall in rates, and the difference between the average two and five-year fixed mortgage rates has reduced by 0.03% to just 0.32% in the past<a class=\"excerpt-read-more\" href=\"https:\/\/www.buyassociationgroup.com\/en-hk\/news\/intense-competition-drives-down-five-year-fixed-rates\/\" title=\"ReadIntense\u00a0competition\u00a0drives down five-year fixed rates\u00a0\u00a0\">&#8230; Read more &raquo;<\/a><\/p>\n","protected":false},"author":3380,"featured_media":9025,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[108],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts\/5025489"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/comments?post=5025489"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts\/5025489\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/media\/9025"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/media?parent=5025489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/categories?post=5025489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/tags?post=5025489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}