If you want to get a great mortgage deal then now is almost certainly the best time.
According to This Is Money, banks and building societies are more keen to lend money than home owners and buyers are to borrow. This means that rates are at historic lows.
According to their article, the lowest two year fixed mortgage rate they could find was 1.24 per cent, whilst the lowers five year fixed was 1.54 per cent.
On a 25 year term, the two year fixed would cost the borrower around £888 per month, while the five year fixed would cost around £920.
There is a small additional cost to locking in your mortgage although this works out on these deals as roughly £32 per month. Most feel the benefits outweigh the additional cost as if interest rates were to rise dramatically the borrower would pay the same amount.
The property market has stalled slightly in recent months. This is likely due to the current uncertain political situation. Figures show that first time buyers are purchasing more properties than home movers are.
The typical first time buyer borrows £174,223 to buy a £224,800 home. The lowest interest rate on this would be 1.45 per cent for a two year fixed and 1.78 per cent for a five year fixed deal.
On a 30 year term, which is typical for first time buyers, repayments would be expected to be £597 per month for 2 years or £625 per month for 5 years. The cost of locking this in would work out at roughly £28 per month.
The obvious advantage to interest rates being so low is that people pay less every month towards their mortgage.
Those who are within 6 months of coming to the end of their fixed term are encouraged to make the most of these low interest rates and talk to a mortgage broker as soon as they can.
Whilst rates aren’t likely to rise to anything like 17 per cent like in 1979, they could raise to 1 per cent or higher. This means that the amount you pay on your mortgage every month could rise considerably.
If you want to make the most of these low interest rates then talk to a mortgage broker in Leicester. Initial advice is free of charge and will help you compare the whole of market to find a deal that suits your individual circumstances.
Alternatively, you can use this form below to submit your query.