Latest mortgage news and rates
Following the EU Referendum it was expected that mortgage rates would rise and house prices would fall. However, both appear rather stable, and it seems homeowners are taking advantage of the continued low rates. Read more, including this month’s BEST RATES, here.
This article does not constitute advice.
Professional advice should be taken prior to acting on any part of it.
Your property may be at risk should you be unable to maintain any agreed mortgage payments over the term agreed.
Confidence is growing
Interestingly, following the Referendum lending transactions for remortgages and for buy-to-let mortgages have reached levels higher than in 2014.
This was unexpected following the negativity around the EU Referendum that was causing home owners and investors to be cautious with their plans.
In addition, house prices are steadily rising, as there is a low supply of available properties, so demand remains high, which is great if you are planning on selling your home in the near future.
Read more: UK House Prices are Rising
How low can mortgage rates go?
Lenders were urged to pass on the latest Bank of England (BoE) rate cuts to their customers, to continue with the notion of cash flowing in the economy. Some lenders have followed these guidelines, and some have chosen not to.
Approximately, 1.5 million homeowners continue to have a Tracker mortgage and 3.5 million have other Variable Rate mortgages, according to CML.
Read more – Should you switch from a Standard Variable Rate Mortgage?
Those with Tracker mortgages should have received a small reduction in their monthly mortgage payment, however with Standard Variable Rate (SVR) mortgages it is the decision of the lender, and some are now bumping up their own SVR to cover themselves against a further falls in the base rate.
“The question people are asking is, will the base rate fall again? And, what impact would this have on fixed rates?” Chris Spurgeon, Independent mortgage broker
Competition in the market and the continued low rates has resulted in a wide choice for homeowners in terms of the mortgage products available. Over 23,000 mortgage products are now on the market, which means the activity has returned to levels, pre-recession. This is according to the National Mortgage Index, July 2016.
Choice gives customers options. which typically results in a buyers market, meaning fixed rates could easily fall further, to meet demand.
However, many homeowners continue to lock in record low Fixed rates now, enabling them to make longer-term plans.
Best rate mortgages for doctors and dentists
The cut in the base rate has led to a reduction in mortgages for many homeowners. New borrowers should also be able to profit from this all-time low rate of interest.
See here for our Best Rates this month:
TERM | TYPE | RATE OF INTEREST |
---|---|---|
2 year | FIXED - 65% | 1.19% |
2 year | TRACKER | 1.29% |
3 year | FIXED - 65% | 1.54% |
5 year | FIXED - 65% | 1.95% |
10 year | FIXED - 65% | 2.49% |
2 year | FIXED (Offset) - 65% | 1.54% |
2 year | FIXED - 90% | 1.99% |
2 year | FIXED - 85% | 1.49% |
2 year | FIXED - Buy-to-Let - 75% | 2.04% |
Average lenders | Standard Variable Rate | 4.30% |
How long to fix your mortgage rate for?
Nobody can tell if Fixed rate mortgages will fall further. However, there are still rock-bottom rates available for everyone, from first-time-buyers to investors, those looking to move house, or those looking to just remortgage for a better arrangement.
Borrowers are finding it tough to decide whether to fix the rate for the short-term, i.e. 2 years, or for longer terms, up to 10 years.
This decision depends on your requirement for stability, and with the uncertainty in the market overall, some homeowners are going for the longer fixed term mortgages, which do usually cost a little more, however with rates so low, it can still be a win:win scenario.
Check out the best rate mortgages and work with an Independent mortgage broker to get the best deal for your situation.
Read more of Chris’s monthly mortgage updates:
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If you would like us to undertake a review of your current mortgage deal or you are thinking of purchasing in the near future and require funding, please contact Chris for a free, no obligation appraisal.
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