The lending market has had strong demand due to the pandemic boosted housing market. Not only are first time buyers anxious to climb onto the property ladder, but home movers and landlords are putting in their offers for properties as well. The result is a busy housing market, as well as a busy lending market. 

The lending market is not only busy with home buyers, but remortgaging homeowners as well.

The competition to win the attention of all of those borrowers is pushing lenders to offer amazing deals. In fact, in the last week or so, many have put out offers that involve interest rates below 1%. One top remortgage lender offered a deal below 1% at 0.94%. These super low interest rate deals are in most cases at levels that are historic lows for the lenders.

Keeping in mind that the interest rate is the cost of borrowing, it is easy to realize that those that mortgaged for two or five year terms that are coming to an end now should find it quite simple to discover a lower interest rate than the one they were previously paying. This could offer substantial savings. Some reports detail that the average savings realized per month with a remortgage is over £200.

It should be noted that the lowest interest rate deals on mortgages and remortgages will likely have larger fees attached to them than deals with higher interest rates, even if only slightly higher. Therefore, it will be a good idea to take into consideration not only savings found through a lower interest rate, but the fees as well. In comparing the offers with the interest rate savings as well as any fees involved, it will help to narrow down which deals are best. For some borrowers, it might not be the deal with the lowest interest rate.

For home buyers, the lowest interest rate deals often require higher deposits. For instance, those that recently came on the market at under 1% require a 40% deposit. With higher asking prices due to strong demand in the housing market, a 40% deposit could put the lowest interest rate deals out of reach of many home buyers. However, there will still be low interest rate deals offered worth a look for those with less of a deposit.

With competition heating up in the lending market as demand for mortgages and remortgages continues, it will do well for borrowers to shop around for a deal. This could be done easily online. 

Consider fees and other costs in with any savings one deal offers over another. Borrowing is truly cheap right now and that means savings for those borrowing large amounts such as would usually be the case with a mortgage or remortgage. Shop online for fast access to information on available deals and do so with not only lenders but also brokers. Mortgage and remortgage brokers work with a many different lenders and often have exclusive deals not offered to the general public. 

Competition between lenders could ease up at any time, and a lender that has been overly popular with borrowers could decide to pull their best deals. Making the most of the current competitive lending market will require borrowers to shop around sooner rather than later before things shift and the best deals begin to disappear.