Record low cost Mortgage deals

The stamp duty hikes that kicked in at the beginning of this month which means that all buy-to-let investors now have to make extra stamp duty payments of three per cent on the property purchase price is set to add to the financial pressure on new and existing Landlords who are looking to increase their property portfolio.

It’s not all bad news though as there has possibly never been a better time to get a competitive mortgage with a fast growing number of products available to buyers and record low costs for two and three year fixed mortgage deals.

Data from the Mortgage Advice Bureau shows that the total number of mortgage products rose by three per cent in February vs the previous year and it was the 13th successive month in which there was a growth in the number of mortgage products available to would-be house purchasers.

 

The MBA also reported that average rates for two and three year fixed mortgage deals fell to record lows in February.

Analysis of Moneyfacts Average Mortgage Rate data shows the average two-year fixed rate mortgage fell to 2.54 per cent in February and the average three year fixed rate mortgage rate fell to less than three per cent for the first time, down to 2.92.

 

Following the Monetary Policy Committee’s recent unanimous decision to keep the Bank of England base rate at 0.5 per cent for an 84th consecutive month, it seems like low rates are set to continue for some time.

In the lead up to the busy Spring market, competition between lenders is hotting up which is good news for prospective borrowers, as they are able to choose from a greater range of products with great deals to be had.

If you are thinking of buying a property and would like some further advice on the great mortgage deals available tailored to your individual needs, you can contact our in-house mortgage advice team on 01903 219992 or email barry@somersfinancial.co.uk.


Content accurate at time of publishing.

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