Mortgage rates have reached their lowest point in six months allowing borrowers to access more products at reduced rates.
According to the latest analysis of mortgage trends by Moneyfacts.
Across all loan-to-values, borrowers can now expect to pay an average 5.32% for a two-year fix and 5% for a five-year fix. This news comes as a welcome relief after the highs witnessed last year following the mini-Budget which left borrowers with unaffordable options and created shockwaves across the property sector.
The momentum in the residential mortgage market is positive, as fixed rates fall and product choice stabilises month-on-month.
It is important to state however, standard variable rates (SVRs) are currently breaching the 7% mark, having surpassed this level of interest for only the second time since 2008 when it was recorded at its highest ever amount -7.16%. And Moneyfacts finance expert Rachel Springall explained: “It’s important that those looking to borrow or refinance do so carefully; one wrong move could leave them paying much higher costs”
Take Action
If your current deal is coming to an end, we highly recommend you speak to us about fixed rate products and other options available to you. Moving to a standard variable rate is likely to be much higher than your current fixed rate product.
If you are wanting to secure peace of mind with fixed monthly repayments we can help, oftentimes 6 months before your fixed rate is due to expire.
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If you would like to discuss a mortgage on a new or current property, please use the Schedule a Call button or call and speak to our award winning team today on 0208 364 3444.
Swap rates could reverse rising UK base rate & mortgage price
Following the collapse of Silicon Valley Bank swap rates in the UK have fallen by as much as 0.2 per cent, which could pause the rising Base Rate trajectory and stabilise mortgage pricing.
Some analyst are predicting that the fall in swap rates could prolong the sub-four per cent market rates and maybe even trigger a reduction in the base rate sooner than expected.
Other analysts are now thinking that the Bank of England hiking interest rates this month is no longer a nailed-on certainty.
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Despite low growth and historically high mortgage rates, which have prompted forecasts of a 10% fall in prices this year, the average home is on the market at £365,357 in March, a rise of 0.8% on the previous month.