Money saving expert Martin Lewis has some advice for homeowners – check your mortgage NOW as cheaper deals are emerging. But don’t rush into a two-year fix, he warns.

Speaking on his BBC Sounds podcast this week, Martin Lewis explained that the cheapest two-year fixed-rate mortgages are currently sitting just below 4%. While that might sound like a good deal, five-year fixes are even cheaper, with rates dipping as low as 3.8%.

Why are five-year fixes cheaper?

You might expect a shorter fix to be cheaper, but Lewis says that’s not what’s happening right now. This is because fixed-rate mortgages are influenced by something called ‘swap rates’ – essentially, the market’s prediction of future interest rates.

The fact that five-year fixes are cheaper than two-year fixes right now suggests that the market expects interest rates to fall and stay lower for longer.

What does this mean for you?

If your fixed-rate mortgage is coming to an end soon, or you’re stuck on a pricey standard variable rate (currently around 8%!), now could be a good time to start looking for a new deal.

However, Lewis urges caution, particularly for those considering a two-year fix. With cheaper five-year deals available, it might make more sense to lock in a lower rate for longer.

He also hints that even better deals could be on the horizon, as the market continues to predict falling interest rates.

Don’t miss out!

This is vital advice for anyone with a mortgage, especially if your current deal is ending soon or you’re about to buy a new property.