Mortgage Rates

Lock right into a all-time low mortgage fee when you can


Mortgage experts believe there has never been a better time for borrowers to cling to the rock bottom home loan rates

Mortgage experts believe there has never been a better time for borrowers to cling to rock-bottom home loan prices.

In the past few weeks, a spate of new, less than 1 percent fixed rate loans have been launched by companies like TSB and Platform Home Loans. This has led one expert, Peter Gettins of L&C Mortgages, to describe the market as “incredibly competitive”.

He adds, ‘There are some fantastic prices out there and I don’t think a homeowner would piss himself off in six months if he benefited from it now.’

Savings: A spate of new fixed rate loan agreements of less than 1 percent has started

Ray Boulger of broker John Charcol shares this view. He says: “It now seems unlikely that the Bank of England will introduce negative interest rates. With a key interest rate of 0.1 percent, the question is not whether interest rates will rise or fall, but when, how quickly and by how much. So a fixed rate loan is the best option. ‘

Nationwide, the largest building society in the country is the youngest lender to offer a loan agreement – but only for existing owners – at less than 1 percent. The two-year fixed-rate loan at 0.99 percent that was launched on Wednesday is available to people with at least 40 percent equity in their homes. It comes with an administration fee of £ 1,499.

Platform’s equivalent two-year fixed rate loan is priced at 0.95 percent, although borrowers with loans less than £ 250,000 would be better off opting for Platform’s 1.05 percent two-year fixed rate loan as the referral fee is £ 500 lower at 999 €.

Although two-year fixed rate loans are cheaper than five- or ten-year fixed rate loans, experts believe that most borrowers would choose a five-year fixed rate loan.

Boulger says, ‘The best 5-year fixed rates are only slightly higher than the best 2-year deals. By fixing for a longer period of time, a borrower not only secures a low interest rate for a longer period of time, but also avoids the costs of switching in two and four years. ‘

For homeowners with at least 40 percent equity in their homes, NatWest, Platform, TSB and Santander all offer five-year fixed-rate loans at less than 1.2 percent.