Record low mortgage deals for borrowers are not about to stop any time soon according Moneyfacts.co.uk. Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: “With competition still fierce in the market it is little surprise that mortgage rates have fallen in the first half of 2016, reaching record lows yet again and currently showing no signs […]
Record low mortgage deals for borrowers are not about to stop any time soon according Moneyfacts.co.uk.
Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: “With competition still fierce in the market it is little surprise that mortgage rates have fallen in the first half of 2016, reaching record lows yet again and currently showing no signs of stopping.”
Since the start of this year average rates across all fixed mortgage terms have fallen.
The average two-year fix has seen a reduction of 0.24% since January, while the average five-year fix has fallen by 0.19% over the same period. The average 10-year fix has dropped by 0.20% since the start of the year.
Nelson said: “Borrowers looking for a new mortgage deal today will be substantially better off than they were six months ago. In fact, anyone considering a five-year fixed rate mortgage today would save themselves £240 a year compared to January.
“While the economy may have faced some uncertainty after the EU referendum one thing is for certain – mortgage competition is currently here to stay, and borrowers sitting on the standard variable rate or coming to the end of their mortgage deal would be wise to consider a fixed rate deal now, when they are still at record lows.”
The mortgage price war has escalated in recent months following hints by Bank of England Governor Mark Carney that the Bank rate could be cut in the event of a Brexit vote.
Since the financial crisis in 2008 mortgage rates have steadily fallen.
With lenders slashing rates, experts believe there has never been a better time to get a mortgage.
HSBC recently launched a two-year fixed rate mortgage that has an interest rate of 0.99%, the lowest since records began.
Nationwide has cut its fixed rate and tracker mortgages by up to 0.25%, while Halifax has reduced its rates on its first-time buyer mortgage range by 0.30%.
Coventry Building Society has also launched the lowest ever 10-year fix at 2.39%.
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