Cheapest Mortgage EVER [mortgage-solutions.blogspot.com]
www.moneyextra.com According to Halifax over the past two years, the average mortgage rate has fallen by over 2 percentage points to just 3.67% they also found the average cost of housing as a whole fell by over £500 to just over £9000..
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Cheapest Mortgage EVER!
Earlier this month Property Advice Blog reported that mortgage rates reached their lowest rates for 23 years. This trend has continued with the announcement of the lowest ever fixed-year fixed rate mortgage in the UK. This bargain-mortgage has been introduced to the market by Chelsea Building Society, and with an increasingly competitive market other mortgage lenders may follow suit.
What is the cheapest mortgage deal ever?Chelsea Building Society has introduced to market a five-year fixed rate mortgage at a rate of 3.39 per cent. This is the cheapest fixed-rate mortgage deal ever on the UK market. In order to take advantage of this record-low mortgage rate, borrowers need a 30% deposit for the property and £1,495 for the arrangement fee.
Are other mortgage lenders dropping their rates?Yes; it’s not just Chelsea Building Society that is offering attractive fixed-rate mortgage deals, last week Yorkshire Building Society cut the interest rate of its five year fixed mortgage to 3.49% with an arrangement fee of £995 and a minimum deposit of 25%.
Similarly nine building societies now offer five-year fixed-rates under 4% including First Direct, Nationwide, Woolwich and Northern rock. Fixed rate mortgages for two-years are also facing a stark drop in price with Woolwich offering a two-year fixed mortgage at 2.54% (or 2.49% in its loyalty range for existing customers) and Skipton Building Society introducing a 2.48% two-year fixed rate mortgage. Why are the rates of mortgages decreasing?The interest rates of mortgages are decreasing because of greater competition and a drop in the rate that banks lend and swap money to one another.
In order to remain competitive and reach their sales targets banks and building societies are offering record-low rates to attract customers. Will fixed-rate mortgages get even cheaper?A speaker from Private Finance confirmed that the great deals on the market mean that borrowers have the opportunity to take advantage of some real mortgage deals. Furthermore the fixed-rate option gives homeowners security at a time when an increase in interest rates could be imminent. However expert mortgage brokers have stated that it is unlikely that borrowing rates will fall below this low, although other lenders may drop their prices in order to remain competitive, waiting longer for prices to fall is unlikely to wield results. Therefore buyers with the means to put down the necessary deposit should take advantage of the cheap mortgages that are currently available.
The rates available on the fixed interest rate mortgage market are becoming increasingly attractive for any prospective homeowner or current homeowners looking to refinance. By remortgaging your property you could take advantage of the cheapest ever mortgage deal available in the UK and gain peace of mind from the security that a five-year fixed rate mortgage deal offers. Interest rates could rise and deals look unlikely to fall any lower, so now is a great time to take advantage of these record-lows and grab yourself a bargain mortgage.
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