Recent comments of Bank of England governor Mark Carney hinting of a imminent base rate increase are already influencing the mortgage market, according to MoneySuperMarket. The experts advise borrowers looking for a new mortgage to hurry up and switch their deal sooner rather than later, as several lenders have started to hike their rates. There are […]
Recent comments of Bank of England governor Mark Carney hinting of a imminent base rate increase are already influencing the mortgage market, according to MoneySuperMarket.
The experts advise borrowers looking for a new mortgage to hurry up and switch their deal sooner rather than later, as several lenders have started to hike their rates.
There are still some great mortgage offers available, but 65 per cent loan-to-value (LTV) mortgages have become cheaper than 60 per cent LTV mortgages on average, MoneySuperMarket’s analysis shows.
The current average 60 per cent LTV rate across fixed, variable and discount mortgages is 2.23 per cent, while the average 65 per cent LTV rate is 2.08 per cent, according to the latest estimates.
With many people underestimating the cost of moving home by thousands of pounds a good mortgage deal is crucial to help save money, the experts say.
A recent study of MoneySuperMarket revealed that 39 per cent of homemovers in the last two years ended up paying £5,000 more on average than originally expected.
Dan Plant, consumer expert at MoneySuperMarket commented:
“It’s prime time for those looking for a mortgage as there are still some great deals on the market – even if it’s a bit bizarre that you can currently get a cheaper deal with a smaller deposit. However, the recent rate rise speculation is starting to make providers cautious, and this is being reflected in their offers. We know choosing a mortgage can be confusing but if people can do it now, they avoid the risk of rates rising over the next few months. Many lenders allow mortgage holders to reserve rates available now for up to six months for a small fee, so even those who still have some time left on their current deal can benefit.
“As always, prospective buyers need to think about the long term and work out the total cost of the mortgage, including both rates and fees, before committing to a deal. While 65 per cent LTV mortgages are better than the 60 per cent LTV deals at the moment, consumers should be wary of a rate rise and make sure they can afford the repayments if they suddenly shoot up, should they choose a variable rate mortgage.”
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| Mortgage type | Average rate |
| 60% LTV fixed | 2.23% |
| 65% LTV fixed | 2.17% |
| 60% LTV discount | 2.59% |
| 65% LTV discount | 1.62% |
| 60% LTV tracker | 1.94% |
| 65% LTV tracker | 1.78% |
