The great British summertime has finally arrived, bringing with it warmer days. But as our weather and BBQs heat up, mortgage rates continue to fall – even dipping below 1%. This is excellent news for borrowers who plan to spend summer searching for deals.
The Bank of England and the Financial Conduct Authority (FCA) reported that in the first quarter of this year, the average rate was 3.01% – a drop of 0.25% recorded at the end of 2014. Since then however, more lenders have announced much lower rates.
We have had a good dig around on your behalf to find the ones we think are of the most interest. It seems it’s the building societies that are really giving borrowers the best of the low rates.
- Yorkshire Building Society has cut the rate on its two-year fixed-rate mortgage to 1.29% at 75% LTV and with a fee of £975. Available until July 2017, this is one of the best deals currently available to first-time buyers as well as people looking to remortgage.
- Leek Building Society recently launched a two-year discounted rate of 1.59% on a variable mortgage, with a £199 fee and 25% deposit.
- Chelsea Building Society has gone a step further, offering a tracker loan for first time buyers at just 0.98% for two years. On the balance the deal comes with fees of £1,675 and a deposit of at least 35%.
- Finally, Tesco Bank, currently has a two-year fixed rate deal at 1.59%. It is available until August 2017 for customers with a minimum 40% deposit.
Although a low rate may look very tempting, you may need to pay substantial fees and could end up on a high standard rate when the discounted term comes to a close. To be sure of what the lenders are offering, contact me to discuss your priorities. I’ll help you find the most suitable deal – with the best possible rate in mind.