Mortgage update: best availability and rates for years

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The mortgage market has entered 2015 on a very positive note. Anyone borrowing money to finance a property purchase has a breadth of choice in terms of products, lenders and rates, leading to some of the most affordable monthly payments for years.

If you have delayed taking out your first mortgage or put the idea of remortgaging on hold, it’s time to think again. Even buy-to-let mortgages have become more accessible, so if you’ve always dreamed of becoming a landlord but were worried about getting a mortgage, start your investment journey today by getting in touch.

You may be wondering why home loans are at such affordable levels. It’s a combination of economic factors that mainly revolve around the interest rate. Experts had predicted that the Bank of England would start increasing the rate in 2015 – some estimating that a quarter point rise could come as early as spring. The forecast has been revised, however, with any rise not predicted to come until the end of 2015 or even as late as 2016. For now, the rate remains at its historic low of 0.5%.

When you combine the current rate of interest with increasing competition in the mortgage market, you get more choice, with lenders releasing lower rates on a weekly basis to attract new customers. Another upside to the increased competition is more approvals, with lenders relaxing their criteria to appeal to more borrowers.On the same note, there’s also good news for specialist contractors and one-year self employed applicants, who are now being considered on standard terms, rather than being viewed as high-risk borrowers. Plus, lenders are now considering 100% of commission, overtime earnings, allowances and benefits as part of mortgage applications.

In terms of deposits, many residential mortgages are available with just a 5% deposit, which is great news for first-time buyers and those moving from rented accommodation. The deposit needed for buy-to-let mortgage is also looking favourable, with some products requiring a deposit of just 20%. It’s also easier to qualify for a buy-to-let mortgage, with an ease of criteria allowing clients in later years to purchase a property into and for retirement – a really important point with the forthcoming change to pension pots for over 55s this April.

Finally those looking to remortgage can also share in the positive news. Remortgage products are now available with no fees or tie ins, giving flexibility to move or change mortgage without penalty. This gives owner-occupiers the opportunity to make the most of some fantastic fixed-rate products that have emerged in the last few months.

If you would like to discuss any of the above or require the latest home loan news, contact Jones Robinson today.

Jones Robinson introduces to Firstxtra Financial Services Ltd for the purposes of arranging and advising on mortgages and protection. Firstxtra Financial Services Ltd is an appointed representative of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority

 


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