Competition between lenders leads to rates being slashed.
Lenders are slashing rates and fees for homeowners, landlords and first-time buyers leading to a mortgage bonanza!
Following the base rate rise in August, the continued uncertainty over Brexit and the sense of unease over property prices plunging would have left many feeling anxious and negative over the state of play in the property market.
However, taking a look at the current level of increased activity brought on by lenders increasing their product ranges, rates dropping and increasing flexibility with their lending criteria – there has rarely been a better time for sourcing a mortgage, first time buyer mortgage, buy to let mortgage or a remortgage.
According to research conducted by Moneyfacts, the average two-year fixed rates for remortgages has now dropped below 2.5 per cent providing some deals for as little as 1.39 per cent – which is just 0.64 per cent over base. This is more competitive than most tracker and variable mortgages.
Two months since the rate increase in August, the average two-year fixed rate has actually fallen from 2.52 per cent to 2.49 per cent today. Five-year fixed rates have also fallen by 0.02 per cent over the same period.*
Not to be left in the shadows, one leading bank has just launched a range of Help to Buy remortgage deals. This allows customers to remortgage with the bank without having to pay off their shared equity loan in the process of securing a more competitive deal.
You may recall that Help to Buy was introduced back in 2013 to help first time buyers by providing them with an interest-free equity loan for five years and up to 20 per cent of the value of the property.
As competition in the lending market heats up, there is a real need to seek independent mortgage advice to prevent missing out on some of the most attractive mortgage deals we have ever seen.
* Rates as of October 2018.