Wednesday, 03 May 2017 10:51

Mortgage Fixed Rates at all time low

For some time, mortgage rates have been at all-time lows. I didn’t think that rates could get any lower… how wrong was I.

Only a couple of weeks ago a five-year fixed rate at 1.3% was slapped on my desk and I thought it was a typo, but no, it seriously was a fixed five-year rate from a challenger / disrupter lender... crazy stuff! Sadly though, the rate wasn’t around for long as it was quickly snapped up!

Banks are becoming desperate to lend, partly due to the Buy-to-Let (BTL) lending being drastically reduced due to recent tax legislation and more stringent borrowing requirements.  Ultimately, lenders need to lend money and with BTL lending not being on target they have created a price war on residential fixed rate mortgages to attract new customers (and hopefully to keep existing customers).

These new challenger banks are keen to get good market share and a strong foothold in the UK’s mortgage market and the way to do this is to have cheap rates, meaning the traditional mortgage lenders will follow suit… right?

So, great times ahead if you need a mortgage.  For an Independent Mortgage Adviser who really know their stuff, then look no further than Conran Financial. Check out our Feefo reviews at: www.conranfinancial.co.uk and you can see why we are seriously good at what we do! Alternatively, call us on 0800 689 3173.


Warm regards

Simon Hughes
Managing Director


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