Current Mortgage Rates
As a result of the pandemic, borrowing costs have drastically fallen in banks. Which has resulted in a respective dip in the cost of fixed-rate mortgage deals.
Best-buy two-year fixed-rate mortgage deals have decreased to below 1.15%. While some banks may now only be offering a two-year fixed interest rate of 1.14% for people with a 40% deposit on their new home. Several other lenders are offering two-year fixed-rate loans with interest rates of 1.19%.
Five-year fixed-rate loans are only slightly more expensive. HSBC is offering a deal of 1.36% for homeowners borrowing 60% of their property’s value. While some other lenders are offering interest rates of 1.5% or less.
Why are fixed-rate mortgage deals dropping?
The average cost of two-year and five-year fixed-rate mortgages fell immensely in May. This massive dip occurred as a result of two emergency interest rate cuts by the Bank of England in response to coronavirus.
Although fixed-rate mortgages are not based on this rate, the fall in the official cost of borrowing had a major impact on swap rates.
Who is eligible to use the new mortgage rate deals?
While the most striking rates are only available to people with at least 40% of their home’s value to put down, there are still good deals for people who have smaller deposits.
Rates of 1.79% are also available for those borrowing 90%.Homeowners with a 25% deposit who want the security of securing their mortgage rate for five years are able to get interest rates starting at 1.46%.Those with a 10% deposit can now get interest rates of 2.16%.
Generally, those with larger mortgages will find that it will be better to pay a high application fee to secure a lower interest rate. However, those with smaller mortgages are better off going for a less competitive rate but a lower arrangement fee.
When looking for a mortgage it is important to conduct research, in order for you to be advised what is the best for you, you can contact us today on the below details and one of our dedicated team members will be in touch.
Email: [email protected]
Phone: 01293 278312.