June Mortgage Market Review
The last few months have seen a gradual reduction in mortgage rates, giving much needed relief to many struggling customers. Another positive has been the robustness of the property market, which has meant that in very trying circumstances, prices have more than held their own.
Our view is that rates will continue to fall, but the days of rates under 2% are long gone. There are inflationary pressures in the economy still, and we don’t feel anybody should take for granted the expectation that we are entering a new phase of sustained lower rates. That said, things are largely positive, and the recent falls have been most welcome.
The impact of the Bank of England dropping the base rate has now filtered into the market completely, and here is an update of the ‘top deals’ available:
Current Typical Top Rates – Remortgage- Purchase – First Time Buyer
Residential 10% Deposit
5 Year Fixed 4.39%
2 Year Fixed 4.42%
Residential 25% Deposit
2 Year Fixed 3.99%
5 Year Fixed 4.04%
Residential 60% Deposit
2 Year Fixed 3.88%
5 Year Fixed 3.89%
Buy to let 25% Deposit * Many Buy to Let lenders offer much lower rates with very high arrangement fees which often more than negate the benefit of the lower rate. Whilst these are available, these are excluded from this process to give a fairer reflection of a ‘snapshot’. All rates shown have arrangement fees of less than £2000 (Some can be as high as 3% of the loan amount)
2 Year fixed 4.19%
5 Year Fixed 4.44%
Most lenders offer will a remortgage package which includes free valuation and legal fees.
Equity Release
In most cases the rate applied to an Equity Release mortgage is fixed for the whole term of the mortgage. During the cost-of-living crisis, with double-digit inflation and correspondingly high rates, we have actively encouraged clients to delay wherever possible if they were considering a lifetime Mortgage. The reduction in rates has filtered through Equity Release products and rates now start at circa 6.43%
In conclusion, we are very optimistic about the next 12 months. People looking to buy have no chance of beating the Stamp Duty deadline, but that isn’t stopping them, and remortgages are now available at what could be described as ‘normal’ rates after the extremely precarious last couple of years.
We just love helping our customers, and showcasing to those who’ve yet to experience it, our personalised service and attention to detail. Our rule is, if you’re not sure, PLEASE ask, as many times as you like. We are here to help.