Great News: Mortgage Rates Hit Rock Bottom
With so many grumblings about the housing market in the press, it’s great to finally have some good news… 2016 has seen a huge increase in the choice of mortgages available, with some lenders offering rock bottom rates.
Over the past 12 months, mortgage rates have dropped dramatically and given the current market outlook, this steep decline shows no signs of stopping.
In February 2016, the average rates for two and three year fixed mortgage deals reached an all-time low! Would-be homeowners can secure a 3 year mortgage at just 2.92% and a 2 year mortgage at 2.54%.
So, how much will you be saving? When compared with February 2015, a borrower taking out a 2 year fixed mortgage in 2016 will be paying £53 per month less on average – these monthly savings add up to £636 over 12 months! Borrowers taking out a 3 or 5 year fixed mortgage in 2016 will pay £40 less a month compared with the previous year.
This great mortgage decrease is not only a good opportunity for first-time buyers, it’s also a chance for current homeowners to get better rates by re-mortgaging their properties.
Reports have shown that in February 2016, for the 13th consecutive month, the total number of mortgage products available in the UK have increased. When compared with the previous year, the total number of products available has increased by 36%.
With more and more products on the market, competition between lenders is heating up which is great news for borrowers. The increased product range means they are able to choose from a wider range of products which are tailored to suit individual’s needs.
These low mortgage rates are helping ease the impact of rising house prices on borrowers as they can benefit from the lower monthly repayments.
As well as benefiting from the decrease in monthly repayments, would-be homeowners can also benefit from the increased choice of products. With lenders trying to differentiate themselves from the competition, more and more products are becoming available to suit the unique requirements of different types of buyers.
If you are thinking of purchasing a property, speak to Jones Robinson, as Newbury’s leading estate agent, we have the largest slice of the market – meaning our sales team are more likely than anyone else to show you to the front door of your next dream home.
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