Rates go down and things are looking up! - 29.01.2009

Author: Jeni Browne Posted on: 29 January 2009

Today has seen the launch of what I would class as a 'stunner of a deal'.  The low rate 2.29%, 1 year fixed rate combined with competitive arrangement fees and a reasonable lock in all tot up to a very attractive package.

So does this mean that things are finally on the move in favor of the borrower? 

Lenders appetite for clean, low loan to value business is really starting to increase - banks need to lend money to make money and they are happy to do this for low risk cases, and indeed they are seeking to take on more lending for this type of transaction.  Taking into account that the average standard variable rate is 4.5% at the moment, a saving on rate by a remortgage is now a realistic concept. 

Be warned that SWAP rates have been moving up over the last few days (albeit with a downward move yesterday) so it looks like pricing is starting to plateau - this could mean that these 'too good to be true' deals are around for a while now, or it could mean that  if SWAPS keep on creeping up, we may start to see pricing follow suit.