Mortgage rates are currently at some of the lowest levels recorded, in spite of continued speculation that Bank Rate will rise next year.
Last year the average rate for a five year fixed residential mortgage deal was 4.06%, and in 2012 it was 4.67%. The current rate stands at a significantly lower 3.45%.
Similarly, the average three year fixed rate has been recorded as 3.21% today, compared to a rate of 4.80% in 2012, and the average two year fixed mortgage rate now stands at 2.90%, whereas it was 4.48% in 2012. These are the findings from comparison website MoneySupermarket.
The same story is seen in the buy to let sector. The Buy to Let Mortgage Product Index published by Mortgages for Business shows the current average rate for a five year fixed buy to let mortgage was 4.30% in September 2015, compared to 4.55% for the same product in September 2014.
The pattern continues when looking at shorter term buy to let mortgages. An average three year fixed rate buy to let mortgage came in at 4.53% in September this year, in comparison to 4.44% in September 2014.
While the average two year fixed rate buy to let mortgage was 3.42% in September this year, compared to 3.81% in September 2014.
When reviewing the range of products currently on offer, there is now a greater choice of both buy to let and residential mortgages available.
For those borrowers looking for substantially longer terms on a residential mortgage, there are currently 41 ten year fixed rate products on the market, while just last month there were only 35.
The number of buy to let mortgage products also continues to rise month on month and borrowers now have a comprehensive 1,003 products to choose from, compared to 754 in September 2014.
Dan Plant, consumer expert at MoneySuperMarket, said:
“Mortgage lenders are doing a U-turn, decreasing their rates again after hiking them over the last couple of months. Even though the Bank of England base rate hasn’t risen yet, it’s still a case of when rather than if, so any homeowners looking for a cheaper deal should take advantage of the current low rates. Many lenders allow mortgage holders to reserve rates available now for up to six months for a small fee, so even those who still have some time left on their current deal can benefit."
Commenting on the figures published by MoneySupermarket, Jeni Browne, Head of Buy to Let and Residential Lending at Mortgages for Business said:
"Using a comparison site can be a useful tool in researching mortgages in addition to using an independent, whole of market broker. Brokers ensure that borrowers find the most suitable rate for their individual circumstances."
Mortgages for Business has a bespoke Buy to Let Mortgage Finder and Calculator to help investors compare rates. Its brokers also search the market for the best rates for both investors and home-owners/buyers.
4th November 2015