Mortgages with low interest rates have been grabbing the headlines recently. Some lenders have been offering two years fixed at just 0.94% or five years fixed at as little as 1.06%.
The mortgages with low interest rates shows that there is an appetite to lend from mortgage providers. It also indicates that we remain in a low interest rate environment. The low rates are available to those with at least a 40% deposit but there have also been price cuts at the other end of the market.
Sometimes with lower interest rates comes higher fees, however this is not the case at the moment. The likes of HSBC and TSB are offering deals to buyers and those remortgaging with fees no higher than were being charged on previous mortgages. We would always advise to compare the different options and ensure the overall, true cost of a new mortgage deal is considered.
For first-time buyers, the good news is that the government’s 95% mortgage guarantee scheme seems to have kickstarted the market. We have also seen a growing number of lenders offering cash-back payment with fixed-rate mortgage products.
“A good mortgage adviser should always take a holistic view when recommending a mortgage product, looking not just at the rate but also the overall cost during and after the initial product period. This should take in to account fees and the implications of adding fees. We aim to provide our clients with a recommendation that takes in to account a number of factors to ensure it is the right deal for them now and in the future.”Chris Lees, Co-Founder at Resolve Financial Solutions.
* All rates correct at the time of writing.
**Your home may be repossessed if you do not keep up repayment on your mortgage.