Despite the end of the Stamp Duty holiday, the number of mortgage deals on the market is growing apace and rates are low.
In fact, mortgage rates fell at their fastest mnonthly rate since May 2020 in September 2021. Moreover, as competion hots up between lenders, an increasing number of deals are becoming available at below 1%, with 72 two -year and 29 five-year fixed rate deals on offer below this rate in September.
Although an offer on one of these mortgage rates is often dependent on a larger deposit, those with a lower deposit shouldn’t feel discouraged. Higher loan-tovalue value (LTV) deals have seen the biggest rate reductions, with the average rate for 90% two-year fixed mortgage dropping by 0.23 percentage points month-on-month and the five-year fixed average down point 0.18 percentage points.
It’s important to note, however, that the lowest mortgage rate available might not translate to the most cost-effective deal. This is because super-low rates can be accompanied by a mortgage fee, which could make them more expensive overall.
If your current mortgage deal is coming to an end, though, now could be the perfect time to look into a low-rate deal. Get in touch for expert advice on your next mortgage (Moneyfacts, 2021)
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and could be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and it’s for guidance only. Some rules may vary in different parts of the UK.