At least 12 lenders offering sub-1% mortgage rates
These rates have been withdrawn.
The number of lenders offering sub-1% mortgage products has increased from 1 in March to at least 12 as the lenders push for more business.
Data shows there are now 86 deals with an interest rate of 0.99% or lower available to new and existing mortgage customers. Two-year fix rates are the most popular term for sub-1% products, but borrowers are also taking advantage of the incredibly cheap five-year deals.
Barclays, Halifax, NatWest, Santander, Platform and TSB are some of the biggest lenders offering the cheapest ever mortgage rates. Most of the rates and £999 arrangement fees and they have free property basic property valuations.
Aaron Strutt, product director at Trinity Financial, says: “Some borrowers are sceptical that they can qualify for these cheap deals, but providing they have a large enough deposit and a good credit score, they are the rates. The lenders do have other options.
"Many of the lenders initially said they would not be able to fund sub-1% rates, but they have been forced to introduce them to keep up with their competitors. Rates may well get even cheaper over the coming weeks.”
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
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Many of the mortgage lenders can tap into cheap funding enabling them to borrow at just over 0.1%. This has led to banks and building societies offering their best ever deals.
You will typically need a deposit of between 40% and 35% to access the most competitively priced rates. However, fixed rates are not much more expensive when borrowers have a 20% or 25% deposit.
Most borrowers taking out a mortgage opt for a two or five-year fix. But is it better to fix in for two or five years? At the moment two year fixes are slightly cheaper than many five-year fixes.
The length of the mortgage rate borrowers take often depends on their attitude to risk. Most people do not want to fix into a higher rate than necessary, especially with multiple banks and economists expecting the Bank of England base rate to come down this year. However, given current global affairs, there is also a chance rates could go up.
With so many homeowners due to remortgage this year and huge numbers of first-time buyers and home-movers set to buy, choosing the right mortgage deal is essential and not necessarily straightforward.
Taking a shorter-term fix or tracker without an early repayment charge often makes sense for borrowers who are not sure whether they want to sell their home or think their personal or financial situation may change.
Call Trinity Financial on 020 7016 0790 to discuss your options.
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