Could mortgage rates be set to fall to new record lows?
Some market analysts are predicting that low swap rates and the base rate remaining at 0.5%, could mean a return to record low mortgage rates.
Presently 2 year swaps are at 0.78%, which is the lowest level since November 2013, and 5 year swaps are at 1.09%, which is the lowest level since May 2013.
In addition, the BoE Monetary Policy Committee unanimously voted last week to keep the base rate at 0.5% yet again. This marks a 7th year of unchanged rates.
With this news we have started to see some lenders begin to drop their rates.
Barclays is one lender to announce cheaper deals with 5 year fixed rates starting at 2.19% for remortgaging home-owners. First Direct has also announced new cheap rate deals with a 5 year fix for 60% LTV set at a rate of 2.09%.
The prediction is for rates to go even lower with the possibility that 5 year fixes could be available in the market at under 2%.
If you are planning to purchase a home or remortgage and want to know which is the most competitive deal for your deposit level, call 0800 048 8828.
Remember the deal with the lowest rate might not work out most affordable overall once fees have been brought into the equation. For this reason, seek help and advice before accepting any mortgage offer.
For a low rate quote call 0800 048 8828.
