Back Latest News

Mortgage wars continue as home buyers find cheapest deals ever

Wednesday, February 11, 2015

 Mortgage rates have plunged to new record lows, the Bank of England has reported, while the price war between lenders shows no sign of a let-up.

Peter Brodnicki, of the Mortgage Advice Bureau, said that today’s deals “will never be repeated”.

Between January 2014 and January this year, for example, 95% loan to value two-year fixes have fall from an average of 5.05% to 4.79%, while 95% LTV five-year fixes have dropped from 5.44% to 5.07%.

Particularly striking is a 75% LTV two-year variable rate mortgage which has dropped from an average of 2.76% to just 1.64% – a fall of over 40%.

Rates kept falling as the year went on. Between December and January, rates continued to drop, with an average 95% LTV five-year fix falling in just one month from 5.43% to 5.07%.

Brian Murphy, head of lending at the Mortgage Advice Bureau, said: “Looking at the Bank’s latest quoted interest rates, there is no sign of any slowdown whatsoever in the mortgage price war.

“Lenders have begun the year with a strong appetite for growth, and newcomers are going head-to-head with established names to launch attractive new deals.

“Rising competition is pushing pricing to new lows, and it means consumers can choose from record-breaking fixed rate deals regardless of whether they have a 5%, 10% or 25% deposit.

“The next six months are shaping up to be the best-ever window to secure a low interest rate if you are looking to buy or remortgage.

“Today’s prices have never been bettered in modern times, and given that a base rate rise is inevitable at some point, it is unlikely they will be surpassed in the years ahead.”

Source: Property Industy Eye - 11th February 2015

Contact Us
Property Search Hide
Please use the selections below to narrow down your search.
Please use the selections below to narrow down your search.
Browse Property Browser our entire property portfolio Show all properties