Best 2 Year Fixed Rate Mortgages

I notice that if you have a large deposit some banks like the Woolwich are offering very competitive fixed rate mortgages of under 3%. For a £170,000 mortgage over 30 years, this leaves mortgage payments of £722 for a standard repayment mortgage. The interest payments are only £425. If interest rates went back up to 6%, the monthly cost would rise to £1029.19.

Natwest offer a pretty good fixed rate mortgage of 3.49% for 2 years, with £800 set up fee. The deposit is 25% which will still be out of the reach of many first time buyers, but for those who have a deposit it represents a very good deal for 2 years.

The Alliance and Leicester also offer fixed rate deals of less than 4%, but, these fixed rate mortgages are requiring a deposit of 35%. A & L Fixed rates

Looking for fixed rate mortgage deals with low deposit, I was interested to see Northern Rock offering one of the best rates. Northern Rock offer a fixed rate mortgage of 6.79 for 2 years %, but only require a 15% deposit. Northern Rock mortgages

If you have a 20% deposit, First Direct offer a very good deal at just 2.89%

Is This A Good Time To Take a Fixed Rate Mortgage?

There are very good deals for people with substantial mortgages, but for people with deposits of just 10 – 15%, fixed rate deals are quite high.

Base rates are not going to fall anymore, and in the medium term could rise as the economy starts to recover.

If house prices stabilise and start to rise, mortgage rates on low deposit mortgages may improve, but, that prospect is still hard to see at moment.