With falling mortgage rates home-owners have never had it so good.
Mortgage rates currently couldn't be better for those with a good credit score, regular income and a decent deposit or equity. This is incredible considering just a few years ago the UK was heavily impacted by the global financial crisis.
The fact mortgage rates are falling despite the base rate staying at 0.5%, is being attributed to the £80 billion released by the government through the Funding for Lending scheme. Cheap funding has meant lenders have been able to dramatically cut their rates.
Last year at this time borrowers were warned to watch out for rising rates, however this was prevented from happening because of the cheap funding. Rates have fallen to historic lows, and now 2 year fixed rates at below 2% have become common place, which would have been unthinkable just 12 months ago.
For those with a decent deposit now is a great time to take on a mortgage. Rates are low and the latest government initiative Help to Buy, is being predicted to lead to a 30% increase in housing prices over the next 2 years. It looks like the UK could be about to enter another property boom so buy before prices rise.
If you are looking for a competitive mortgage an adviser at Deal Direct can help. Whether you are looking to purchase a first home, move house or remortgage we can find you a great mortgage. As a 'whole of market' broker we can search through ALL lenders products, to find you the right deal at the right rate regardless of your deposit level.
For advice and a quote call 0800 048 8828.
