Securing a low mortgage rate
Despite the end of the Stamp Duty holiday, the number of mortgage deals on the market is growing apace and rates are low which should help with securing a low mortgage rate.
In fact, mortgage rates fell at their fastest monthly rate since May 2020 in September 12. Moreover, as competition hots up between lenders, an increasing number of deals are becoming available at below 1%, with 72 two-year and 29 five-year fixed rate deals on offer below this rate in September.
Although an offer on one of these mortgage rates is often dependent on a larger deposit, those with a lower deposit shouldn’t feel discouraged. Higher loan-to value (LTV) deals have seen the biggest rate reductions, with the average rate for a 90% two-year fixed mortgage dropping by 0.23 percentage points
month-on-month and the five-year fixed average down by 0.18 percentage points.
It’s important to note, however, that the lowest mortgage rate available might not translate to the most cost-effective deal. This is because super-low rates can be accompanied by a mortgage fee, which
could make them more expensive overall. If your current mortgage deal is coming to an end, though, now could be the perfect time to think about securing a low mortgage rate and lock into a low-rate deal.
Agreement in Principle
Increasingly Estate Agents and Sellers are requesting a mortgage ‘Agreement in Principle’ before they can accept your offer. We can now offer a service designed to speed up this process. On receipt of the correct information it may be possible to obtain the agreement, before the full application process has started.
Get in touch for expert advice on your next mortgage. Take a look at our Guide to Mortgages and Protection to get a feel for our service and how it will make your life, your mortgage loan and your move, easier for you.
Source: Quilter Essentially Mortgages