There is probably not a better time to get a remortgage or make a property purchase than when lenders are competing for the attention of borrowers.  It happened last year for a slight time frame and it didn’t look like it would happen again anytime soon as things developed in 2012.  However, one of the most competitive markets is developing right now thanks to the Government’s Funding for Lending scheme.

The scheme was introduced to keep lenders from having to gain their funding from the global lending market.  By offering lenders funding at low costs in return for affordable rates and readily available lending to borrowers the Government has opened up the tunnel for lending to move easily toward the borrower and at affordable rates.  Lenders have been offering better and better deals and some have been historically low on fixed rate deals.

The most recent deal to hit the market is a 7 year fixed rate mortgage at 90% loan to value (LTV) with an interest rate of 4.89% to homebuyers from HSBC and it has no fees.  It is also being offered on 2, 3, and 5 year deals.  There is also a lifetime tracker deal at 4.49% for first time buyers and home movers with a 10% deposit that is also fee free.  Remortgagers can get the same deal at a fee of £599.

In response to the announcement of the deals from HSBC, Rachel Springall, a spokesperson for Moneyfacts said, “While it's great to see some low rates launched specifically aimed at first-time buyers, only the seven-year option sits as the market leader at 90% loan-to-value.

“Customers will find the fee-free option particularly attractive, especially if they are trying to keep initial costs down. Any helping hand for struggling first-time buyers will be considered a great advantage and has the potential to assist borrowers trying to get on to the property ladder.”