According to a recent report from Your Move, fixed rate mortgages continue to stand out in the mortgage market with considerable savings compared to similar discounted products.
The company's Remortgage Index, tracks first-year savings achieved by switching from a £100,000 standard variable rate mortgage at 6.59% to the Money Facts best buy rate in different classes.
The study showed that savings on the best buy five-year fixed rate deal rose 16% to £1,590 over the last month and 174% over the last year.
Our view
Lenders have made fixed rates marginally more competitive than discount or variable rates. We believe this is because the whole market expects interest rates to fall again over the next 12 months and lenders are trying to lock you in now to a fixed rate, which appears competitive now but would actually mean them making more if interest rates do fall. Think carefully before locking in to a rate for a few years.