What can we expect next from UK mortgage rates?
With interest rates not set to rise until at least 2017, it’s unlikely we’ll see much change with mortgage rate levels for the time being. This means we are likely to continue seeing ultra-low rates for some time to come.
Lenders really are offering highly competitive deals to borrowers, and those with the largest deposits are able to lock into deals with rates set as low as 1%.
Mortgage demand is high as borrowers remain keen to climb on the property ladder.
For those looking to buy a new home or remortgage, now is a great time to search for a new deal with rates still set at record lows.
With interest rates likely to remain low for the next year or so, there is increase interest in tracker products. However as low interest rates cannot be guaranteed, this type of mortgage product comes with an element of risk.
For those borrowers who want to ensure that they know what rate they will pay over the term of their mortgage, a fixed rate might be a better option.
Currently 2 year fixed rates start at just over 1% and 5 year fixed rates at 2%.
With this in mind you might want to start searching the market to find out what rate you could achieve for your deposit level, or how much you could save on your existing home by switching products.
For impartial mortgage advice and a low rate offer,
call us today on 0800 408 8828.
