Good news for retired borrowers! Five-year fixed mortgage rates have dropped to as low as 5%, the lowest level since July. This means that retired homeowners can now lock in a better rate on their mortgage for the next five years, giving them peace of mind knowing that their monthly payments will be manageable.
There are a number of reasons why 5-year fixed rates have fallen so low. One reason is that the Bank of England has kept the base rate unchanged for the past two months and this has given lenders more confidence to cut their own mortgage rates.
Another reason is that there is increased competition among lenders to attract retired borrowers. Lenders know that retired borrowers are typically creditworthy and have a steady income, so they are willing to offer them more competitive rates.
The fall in 5-year fixed rates is a positive development for retired homeowners during what has been a challenging year. It means that you can now borrow money at a lower cost, which can help you to reduce your monthly living expenses or to free up more money to spend on other things, like enjoying your retirement.
These rates are typically for mortgages not passing the age of 80 at the end of the term, so very much depends on your circumstances. As a rule of thumb, rates get slightly more expensive in 5 year ‘chunks’ based on your age at the end of the term. For example 75, 80, 85, 90, 95 at the end of the mortgage term.
If you are a retired homeowner and you are thinking about getting a mortgage or re-mortgaging, now is a good time to do it. 5-year fixed rates are at their lowest level in several months, and there are a number of competitive deals available.
If you are unsure whether a 5-year fixed rate mortgage is right for you, it is important to speak to a financial advisor. They can help you to assess your needs and choose the best mortgage product for you.
