There seem to be a few dilemmas around in the mortgage market at the moment.

Maybe because of uncertainty around Brexit and what happens next, longer term, fixed-rate mortgages are increasing in popularity and availability.

But at the same time, the trend in borrowing rates at the moment is downward, which means that mortgage bills are going down.

Understandably, with Brexit on the horizon, some people aren’t sure what will happen to interest rates, particularly if there is a no-deal Brexit and are plumping to fix their mortgage rate for longer.

Five-year fixed rates have become very popular, not least because the gap in cost between two and five-year fixed-rate mortgages has, according to Which?, fallen from 1% to 0.5% during the past three years.

The number of people fixing their mortgage for even longer – for 10 years – has also grown and is now at its highest level since 2007.

Recently, Newcastle Building Society launched a very attractive 10-year rate at just 2.89% on a 90% loan. That’s 1.3% lower for a 10-year deal than in 2016. Virgin Money went a step further, with new mortgages that included a 15-year deal, for 2.55% on 65% loans, 2.75% at 75% and 3.75% at 90%.

All of which are excellent value, if you want the peace of mind of fixing your mortgage for a longer time.

The disadvantage, of course, is that fixing your mortgage for such a long time, leaves you open to possible reductions in the base rate. If you fix your rate for 10 or 15 years and then interest rates fall once or twice, you could find yourself paying more than you hoped, for quite a long time.

There’s no doubt that ever since the EU Referendum in 2016, there has been uncertainty in the mortgage market. However, ironically what has happened to the mortgage market since the Referendum has been nothing but good news for housebuyers.

Research by Which? reveals that in the 38 months since the vote, there has been a fall in the cost of both two and five-year fixed-rate mortgages. The average for a two-year deal has fallen from 2.58% to 2.47% and for a five-year deal, from 3.16% to 2.8%.

And those figures are being backed up by moves in the mortgage market during the early part of August, with the average two-year fixed rate deal falling by 0.02% and of a five-year deal by 0.04%. Little surprise then, that the number of mortgage approvals last month hit a 10-year high.

Ultimately, the decision will be down to the individual and their own wishes and circumstances.

With so many options around it has never been more important to get the right advice before taking out a mortgage.

For a free, no obligation discussion on any mortgage or insurance-related issue, please give me a call on 01723 384558 or 07767 692 653 or email me at mgrayshan@googlemail.com