News

Jul 11

Mortgage Rates: They’ve Never Been so Low

According to Moneyfacts, the average rate of a fixed term or tracker is at its lowest level since 1988.

The Moneyfacts research has revealed a two year fixed rate is available at an average of 4.32% and for those happy to tie in for three years, it’s 4.92%. Those borrowers with a longer term view in mind can fix for five years at 5.29%. Two year trackers are averaging out at 3.37%.

Good News for First Time Buyers as Lenders cut Rates Across all Tiers

Moneyfacts spokeswoman Michelle Slade said: “Earlier this year the market expected a rise in bank base rate that saw mortgage rates start to rise. An imminent rise in bank base rate now appears unlikely and the cost of funding on the swap rate market has reduced. This reduction in funding costs has led to average mortgage rates falling to their lowest level since Moneyfacts started recording rates in 1988.”

She continued, “Lenders appear to be applying cuts equally across all LTV tiers, which is good news for first-time buyers, as previously cuts were only being applied to the lower LTV bands. While rates may still fall slightly further, it is likely that some lenders will instead opt to make existing competitive deals available to borrowers with smaller deposits.”

Don’t Delay: Secure a New Mortgage Deal as soon as you can

And Michelle Slade summarised with this sound advice: “If borrowers delay too long to secure a new mortgage deal, they could find that they miss out on some of the lowest rates ever seen.”

A whole of market mortgage broker can study each and every deal on offer from lenders large and small and will often come up with an exclusive offer that won’t be found elsewhere, and could well only be available to brokers, possibly for a very limited period.

It is vital to take professional advice when taking out a mortgage; whether a first time buyer, moving home or re-mortgaging, the best mortgage deals are, quite simply, not found on comparison websites or in your bank where advisers there are tied to just a few offers, if you’re lucky.

Mortgage rates have never been so low according to Moneyfacts; so speak to a whole of market mortgage adviser today and find out what deals are on offer and start enjoying the savings they could bring.

Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.

Bower Mortgage Company: FSA regulated UK-wide mortgage advice from friendly, qualified, experienced mortgage planning specialists. Quality, face to face advice and a strong focus on building long term customer relationships. For money saving mortgage and mortgage protection advice, contact Bower on 0800 411 8668; e-mail info@bowermortgagecompany.co.uk.