Mortgage Lending Rates at Lowest Level in Decades
The UK housing market is now full of lenders offering mortgage loans at rock bottom rates. House hunters can now find the best mortgage rates since 1995, and this new low is creating a winning situation for those looking to move home. Mortgage loans are now being offered at rates which are officially the cheapest on record.
The winter months have slowed activity within the housing market, and that has prompted many lenders to be creative with lending products. Those lending products include fixed rate, variable rate, and remortgages. Although new strict lending rules exist, this has not affected the drop in rates which is taking place within many well-known lenders.
According to the Bank of England, demand for mortgages dropped significantly during the fourth quarter of last year. As many possible house hunters and those looking to remortgage are now sitting on the fence due to the uncertainty of the increase in base rate, lenders are pulling out all stops in order to attract business in the slow times of the winter months. This slow period is expected to last at least until the spring according to many within the housing market.
Many experts believe this is the best time in history to look into moving home or remortgaging. Fixed interest rates are actually hovering around the 2% area. Even though it is only 1% difference from 3%, it is actually a 33% drop in the amount of interest paid over time.
The moment the bank rate rises, the landscape within housing will look quite different.