Mortgage rates hit a high in 2022 and the first half of 2023 making it more difficult for buyers thus affecting the housing market. However, banks have seen a steady decline on inflation giving them confidence in lending at a lower rate.
If inflation continues to fall, the majority of industry insiders are optimistic that the top mortgage rates could dip below 5% again.
On 27 October, the average mortgage rates, according to Moneyfacts, are:
- Two-year fixed deal now stands at 6.32%
- Five-year fixed deal now stands at 5.88%
On 1 October:
- Standard variable rate (SVR) is 8.18%
First-time buyers
First-time buyers often have smaller deposits of between 5% and 10% of the value of the home.
A small deposit might mean you are more limited in the number of deals available to you. If you do find a suitable deal, the interest rates are likely to be higher than if you had a bigger deposit because lenders will see you as riskier.
There are many resources out there to help you find the best deal for you, speaking to a mortgage advisor, chatting to the bank, sometimes banks and building societies hold back deals for existing customers. There are many mortgage calculators and credit score checker facilities online, this is a great way to keep on top of your credit score ensuring you get the best possible deal.
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World Earth Day 2024
How to make your home greener? Install energy efficient lightbulbs Use appliances such as air fryers and slow cookers to cook meals Recycle and re-use items, even the smallest bit of plastic can be recycled Conserve water where possible and avoid chemicals going into the water way by disposing of them correctly Take re-usable shopping bags when you go shopping Unplug appliances when you're not using them Hang clothes to dry instead of using a dryer Go paperless on bank/bills We can all play a part in making the world a greener/safer place and making small sustainable changes.
Are you, your friends or family struggling to remortgage? Our in house mortgage advisor can help! There is a new mortgage offer in place whereby the basic criteria is: Must be married, you can use your partners income to top up how much you can borrow. Borrowing up to 70% loan to value Best part is, your partners income does not need to go on the mortgage or application. How does it work? Illustrative example: Mr Smith buys a property in his sole name with an income of £30,000.00 per annum, Mrs Smith is not named on the mortgage however earns £20,000.00 per annum, we use 50% of Mrs Smith income within the affordability. A total income of £40,000.00 to be used in the affordability based on 2 adults living at the property. Miss Johnson wants to remortgage her property and has an income of £45,000.00 per annum, her partner Mr Taylor who is not named on the mortgage but living at the property earns £35,000.00 as a self-employed plumber. A council tax bill is provided as evidence that Mr Taylor resides at the property. £62,500.00 to be used in the affordability Get in touch today to speak to our inhouse mortgage advisor.