Increased market competition through low mortgage rates.

Home-owners are benefiting from low mortgage rates.

Competition in the mortgage market has increased as lenders attempt to attract new business through the launch of low mortgage rates. Each week we are hearing from UK lenders who are slashing their rates to compete with offers from other lenders.

Trackers are now more competitive, fixed rates have fallen to lowest ever levels and cheap buy to let rates are increasing landlords' property portfolios.

Mortgage rates are falling because of access to cheaper funding. HSBC started the competition by introducing significant rate cuts in July. As swap rates fell further and the funding for lending scheme was announced rates fell even lower.

HSBC then released its lowest ever 5 year fixed rate at 2.99% for 60% LTV, which was quickly copied by Santander who offered the same deal. NatWest then announced an even lower rate at 2.95%.

Demand for these products has been high, HSBC has already withdrawn its lowest ever offer, and NatWest has announced it is to increase its rate to over 3% to manage demand.

It is hoped that the low mortgage rates on offer at present will help to revitalise the UK property market.

First time buyers are are also being targeted by lenders offering more small deposit mortgage deals. While the rates offered are not the cheapest ever launched, various mortgage incentives are being offered to ease the cost of a first time purchase. Cashback, fee free deals and store card vouchers are all being offered upon completion by some lenders.

With low mortgage rates and static house prices now is the time to climb on the property ladder. If you are looking for advice and a cheap quote you should contact Deal Direct.

Call one of our advisers today.