News that the bank base rate is going to stay as it is until at least the second quarter of 2017 gives an added nudge for anyone looking to get into the property market or thinking of switching their lender.
Buying a home or switching mortgage is all about having the confidence to take the plunge and with rates so low and set to stay that way, there has never been a better time to go ahead.
Fixed rate mortgages are going through something of a price war, with lenders falling over themselves to offer the best rates over two, three or five years.
For example, the average rate for a five-year fixed rate deal is 3.45%, whilst this time last year it was 4.06% and in 2012 it was 4.67%.
For new borrowers with a 25% deposit you can get a two-year fix for just 1.44% and even a remortgage for 1.59% with no legal fees and a free valuation.
Even the Help to Buy scheme has come down from 5% to 3.99%, fixed for two years, with just a 5% deposit.
Evidence suggests that remortgages are on the up, with figures showing a 40% year on year increase, but new mortgages somewhat slower at just a 14% increase.
But with house prices on the up – by 10% year on year – it would seem a great time to look at a mortgage before prices go up any more and certainly before the bank base rate does shift.
As with all important decisions, it’s important to get advice before taking out a mortgage, particularly as there are dozens of products out there.
We are in the great position of being able to look at the whole of the market to find customers the best deal to fit their needs.