If you are looking for a rock-bottom mortgage deal – there has probably never been a better time as it has emerged the number of deals with rates below 1% has risen by 400%.
According to MoneySuperMarket there were as many as 50 deals with rates in the ‘sub-1%’ category and there are even some available to first-time buyers.
With mortgage rates falling across the board, it would seem access to low deals is better than ever making borrowing even cheaper.
Jo Thornhill, money expert at MoneySuperMarket, said: “Our insights reveal that now is a historically good time to be on the look-out for a new mortage deal.
“Just six months ago, securing a mortgage rate of 1.5% to 2% would have been viewed as a real success but the past four months have seen borrowing get even cheaper, with the availability of deals with rates lower than 1% quadrupling.”
Deals for all
Sub-1% deals began emerging in June, when MoneySuperMarket said there were 10 deals, of which five were only available to those remortgaging.
But in the past four months the data revealed a ‘marked increase’ in low interest mortgages. It means there are now 50 on the market and there are deals accessible to movers, remortgagers and first-time buyers.
Jo added: “Mortgages haven’t been this cheap for many years and the great news is that it’s not just remortgagers with low loan to value (LTV) ratios that can benefit: there are some great deals available for first-time buyers and home movers too.
“If you’re in the market for a mortgage, make sure you shop around carefully and search for a product that meets your needs.
“Think carefully about whether you can afford the repayments and try to build as big a deposit as possible as a large deposit can open the door to lower interest rate deals.”
Availability of mortage products with rates below 1% (Source: MoneySuperMarket)
| Month | First time buyers | Home movers | Re-mortgage | Total |
| June | 2 | 3 | 5 | 10 |
| July | 8 | 8 | 11 | 27 |
| August | 10 | 10 | 14 | 34 |
| September | 16 | 16 | 18 | 50 |
| % Increase | 700 | 433 | 260 | 400 |
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