Mortgage Rates at Record Low
Published ¤ 28/06/2011 11:58:15
Good news for homeowners, as research shows that mortgage rates are now at their lowest level in 23 years.
Research by MoneyFacts has shown that rates for both tracker and fixed mortgages have fallen to the lowest level seen since they began recording rates in 1988, 23 years ago.
Over the last couple of months some lenders have been competing to lead the "best buy" tables, and this has led to some very attractive rates, across all LTV (loan to value) tiers.
For instance, the best 2 year tracker rates now begin at below 2%, the best 3 year trackers at only 2.29% and the best lifetime trackers from only 2.39%.
The best fixed rates begin at 2.59% for 2 year fixed, 3.09% for 3 year fixed, and 3.89% for 5 year fixed.
Michelle Slade, spokesperson for Moneyfacts.co.uk, commented "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.
"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."
First time buyers
People buying their first home, or those with very small deposits, are now able to get some very compeitive rates too. For instance, if you only have a 10% deposit, discounted rates start from 3.99%, 2 year fixed rates from 4.79%, and 5 year fixed rates from 5.69%.
For those with only a 5% deposit, there are 2 year fixed rates below 5%!
Paul Skinner, Director at PKS, an independent mortgage and insurance broker in Hampshire, said "These rates are fantastic news, especially for those with smaller deposits. However, rates WILL rise, and it is predicted that this will happen in 2012. The longer people wait to secure one of these rates, the greater the chance of missing out. As soon as lenders believe a rate rise is imminent, they will increase their rates without any notice.
"It is also important to get independent advice, as many of the market leading rates also come with higher fees, and sometimes it may be more advantageous to take a slightly higher rate with lower fees. Many of the comparison sites do not provide this "true cost" analysis that most brokers can provide, so be aware if doing research online."
If you want to secure a better deal, while these great rates are available, or, if you think it is impossible to get a mortgage these days, then call PKS to discuss your requirements, you may be surprised. Alternatively, click here to email us.
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