Plus most choice in products!
In March the Monetary Policy Committee (MPC) cast a unanimous vote to keep the Bank of England (BoE) base rate at 0.5%. Subsequently, as the threat of a rate-rise depletes further, average mortgage rates fall another notch, resulting in the lowest mortgage rates ever, on record!
Are you benefiting?
This does not constitute advice and advice should be sought in all instances before acting on it.
Your property may be at risk should you be unable to maintain any agreed mortgage payments over the term agreed.
0.5% for 84 months
This is the 84th month where interest rates have been at the rock bottom 0.5%. Every time there is a further vote of this nature provides more reason to believe that rates will remain low until at least 2017, as latest market projections suggest.
Rates are falling further
Some market experts, including the shadow MPC, are predicting rates could remain at 0.5% until 2018, or even 2020.
Subsequently, lenders are taking advantage of the opportunity to entice customers with offering even lower rates, as they have confidence that mortgage repayments will be manageable for longer by the borrower.
An average three-year fixed rate mortgage dropped by around 0.9% and an average two-year fell by 0.2%
In addition, the competition amongst lenders means mortgage products are plentiful, and consumers are in the position to cash-in by finding the best deal.
According to Mortgage Advice Bureau there was a 3% rise in mortgage products in February offering greater choice to borrowers.
New mortgages and remortgages
It’s a double dose of good news for homeowners looking to remortgage, as well as potential buyers.
Whilst confidence amongst lenders is high, buyers with larger deposits or equity in their property are still able to reap the best rewards. The lower the Loan-to-Value, the better the deals available.
Now really is the time to be positioning yourself for the future.
Whilst options are available, strict affordability tests are still part of the application process, and mortgage finance is not a “free-for-all”. Working with a mortgage adviser can help you get the right deal, the right lender and help speed up the paperwork.
Make savings on your mortgage. Speak with Chris
Dental & Medical Financial Services are specialist mortgage advisers. Contact Chris for a free, no obligation appraisal and to see if there are savings to be made.
Tel: 01403 780 770