British mortgage lending rates reach lowest rates ever

British mortgage lending rates reach lowest rates ever

Home buyers across the UK are currently seeing some of the best deals ever when it comes to mortgages as experts point out that borrowers should not be fooled by standard variable rate loans.

After the Bank of England recently launched the first mortgage product of under 1% latest figures show that the average rate of popular two year fixed rates was 1.26%, down from 1.73% twelve months ago.

60% of buy-to-lets are bought mortgage free

In figures closer to real life, this means that borrowers with a 40% deposit would have their monthly repayments for a £150,000 mortgage drop from £616.25 to £583.14.

David Hollingworth of broker London & Country told City AM that the current rate war needs to be taken into consideration by any borrower as homeowners should make sure they review their deal and take advantage of the current market sentiment.

“Yorkshire Building Society launched the lowest rate on record at 0.89% for a two year deal with a 35% deposit. Failing to grab the chance to cut the interest rate on the single biggest outgoing is tantamount to throwing money down the drain.”

Other building societies, such as Santander and Nationwide, followed suit and also cut their rates last month.

Goodbye London! Liverpool and Nottingham named as best areas for buy-to-let investment

At the same time, research put together by Paragon Mortgages showed that – after a minor drop last year – buy-to-let lending stabilised during Q1 of 2017. In the first three months of this year, the sector accounted for 18% of all mortgages handled. Remortgaging remained the most popular type of borrowing.

John Heron, managing director of Paragon Mortgages, said:

“It’s clear to see that the benefit of certainty at such low rates is continuing to drive up the popularity of fixed rate mortgages, particularly five year fixed terms, which gained further ground in the first quarter of 2017.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT