Is now a good time to review your mortgage?

Posted: 13/07/2017 16:48:31 by Administrator | with 0 comments

Latest data* reveals that average two year fixed UK mortgage rates now stand at 2.26% and the equivalent two year variable tracker rates at 1.82%. Both have fallen to their lowest levels on record.
 
Our own market review reveals 2 year fixed and variable rate options below 1.1% and 5 year variable and fixed options coming in from around 1.7%. When you build in the cost of funds and lender needs to cover costs and make a profit, these are truly competitive options. Longer term fixed rates additionally provide the knowledge and comfort of known monthly mortgage outgoings over the medium to long term.
 
Many borrowers remain on their lenders’ Standard Variable Rate (SVR) which can vary with current rates typically between 3 ½% and 5 ½%. These mortgage borrowers are likely to be affected by any rise in base rate and now could be a good time to consider locking in a longer term rate option, especially with the low rates currently on offer.
 
These record low rates are at a time when there are inflationary pressures: Brexit uncertainty and the Bank of England hinting at a likely future base rate rise. So, what is driving mortgage rates lower when the underlying economy is perhaps suggesting otherwise? Industry commentary suggests that the downward trend in mortgage rates can be explained by intense competition amongst lenders.

Established mortgage lenders have gradually improved terms and pricing in order to maintain volumes and mortgage returns. In addition, new mortgage lenders and challenger banks are building volumes and providing attractive terms to new borrowers.


If you are looking to re-mortgage, please contact us to see how we could help you achieve the best rate.

* Source: Moneyfacts UK Mortgage Tends Treasury Report Data

 


 

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