Mortgage lenders battle for business as rates fall below 1%
Mortgage lenders are battling for business, with a number of mortgage products now available below 1%.
In recent weeks high-street lenders have announced reductions to their headline mortgage rates. Halifax recently announced a two-year mortgage rate of 0.83%. HSBC has unveiled its lowest ever fixed mortgage rate, a two-year product at 0.89%. To access these deals homeowners will require a 40% deposit.
This follows on from Nationwide, NatWest and HSBC offering five-year fixed products below one per cent.
Additionally, first time buyers are now able to access the government backed mortgage scheme, providing them with access to mortgage products which were simply unavailable during the first phase of the pandemic.
Jeremy Lock, Head of Mortgage Development at Cooper Associates Mortgages, said:
“The latest attention grabbing rates from lenders will certainly attract interest from new entrants to the property market, as well as those due to remortgage in the coming months.
We are also seeing more the return of competitive products for those with lower deposits, including a five-year fixed deal at 1.19% for those with a 25% deposit. There is certainly room for lenders to cut rates in the higher loan to value sector and we are hopeful these will be reduced in the coming months.
In 2019 we saw two year fixed rate mortgages at 1.19% and it is incredible to think that they are now starting to look expensive!
Over the last year there has been a trend of lenders providing competitive products for those borrowers who they perceive as low risk, such as those with significant deposits or equity built up in their property. The reduction in rates is also fuelled by the increase in cash held within bank accounts, accumulated by those increasing their savings during lockdown.
When comparing the deals available it is recommended you discuss your options with a whole of market broker. At Cooper Associates Mortgages we are able to compare the deals available from our wide panel of lenders, analysing the applicable fees and recommending the most cost effective product for each individual client, depending on their specific circumstances.”
Cooper Associates Mortgages are here to assist you if you would like to discuss your mortgage requirements and discover what mortgage or remortgage products are available to you. We offer fee-free advice and can arrange face-to-face, telephone or video call appointments at a time to suit you. Should you wish to discuss your situation with one of our mortgage advisers please call 01823 273880 or complete an enquiry form and we will contact you as soon as possible.
