UK mortgage broker, YesCanDo Money, has published a blog post examining the growing popularity of 3-year fixed mortgages. With a 360% increase in these loans in the past 4 months, they take a closer look at this change in lending trends.
YesCanDo Money, a fee-free mortgage broker that offers independent advice and helps people access a wide range of mortgage deals, regularly posts information and advice in regard to the UK mortgage market. Their latest guide, titled The Rise of a 3-Year Fixed Rate Mortgage, looks at the surge in 3-year fixed-rate mortgages over the past four years.
As the post explains, 2-year and 5-year fixed-rate mortgages have accounted for the majority, with people able to choose between the flexibility and security they need. Now, with interest rates expanding, a new option is starting to become more popular: the 3-year fixed-rate mortgage that, from some perspectives, offers the best of both worlds.
This increase in popularity includes a 360% increase in demand for 3-year fixed-rate mortgage products when comparing January-April 2023 to May-August 2023. The piece offers the reasoning that the 3-year fixed rate allows for a balance between the flexibility offered by the short 2-year and long 5-year offerings.
“Since interest rates started increasing in December 2021 the vast majority of our clients at YesCanDo Money have been choosing 5-year fixed rates. As we have progressed through 2023 we have seen a massive uptake in clients choosing a 3-year fixed-rate mortgage,” says Steve Roberts, Found of YesCanDo Money, in the guide. “The feedback our clients are giving us is that they feel worried about locking themselves into a high-interest-rate mortgage for 5 years but also want more peace of mind than a 2 year fixed rate gives them. The 3-year fixed rate seems to hit the sweet spot for people needing a mortgage as we move nearer to the end of 2023 and hopefully, the end of interest rate increases.”
“Homeowners seem to appreciate locking in a consistent rate for a few years while retaining the option to refinance if rates drop. The noticeable spike in interest indicates that the 3-year fixed rate mortgage is becoming a popular choice for those seeking security and flexibility.”
The guide goes on to break down the particulars of how 3-year fixed-rate mortgages work, its benefits, and alternatives, including case studies as to how homeowners and buyers might use it.
Visitors can read all of the information YesCanDo Money has on the surge of 3 Year Fixed Rate Mortgage options by visiting the website.
For more information about YesCanDo Money use the contact details below:
Name: Stephen Roberts
Email: Send Email
Organization: YesCanDo Money
Address: YesCanDo Money, Langstone Gate, Solent Road, Havant, PO9 1TR
Release ID: 89108044
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