18 Sep Historic low for mortgage rates
According to Moneyfacts, the financial analysts, there are now 140 loans on the market available with sub-1% interest rates after a spate of banks repeatedly undercutting each other on price over the last few months.
This has resulted in mortgage rates being the lowest ever recorded in Britain, with the launch of the latest new rate – 0.79%.
Launched by Platform – part of the Co-operative Bank – this two year fixed rate loan at 0.79% betters the previous lowest rate which was offered by Barclays at 0.86% and there is still speculation that rates could fall even further.
In order to take out the Platform loan, prospective borrowers will have to have a 40% deposit or equity and also pay an arrangement fee of £1499 (these can be paid upfront or added to the loan), the savings with the low interest rate usually outweigh the fee costs with homeowners making a substantial saving, due to the lower rate.
Now has never been a better time to re-mortgage. Looking at homeowners on Lloyds standard variable tariff with an interest rate of 3.59% for example, the potential savings are clear to see.
Longer term, the introduction of the lowest recorded interest rate for a mortgage could indicate what is to come in future months and we will be keeping a close eye on developments to ensure that our clients are getting the deal that is Best 4U!