Posts with tag: homebuyer mortgages

Remortgage Approvals Rise as Homeowners Rush to Avoid Rate Increase

Published On: September 4, 2015 at 9:47 am

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Categories: Landlord News

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Remortgage Approvals Rise as Homeowners Rush to Avoid Rate Increase

Remortgage Approvals Rise as Homeowners Rush to Avoid Rate Increase

Remortgaging reached the highest level for seven years in July, as homeowners rush to take advantage of the record low borrowing rates before they increase.

38,042 remortgage deals, worth a total of £6.4 billion, were approved. This is the highest total since November 2008.

Loans for homebuyers also hit a 17-month high, with 68,764 approved in July at a total value of £11.6 billion.

Economist Howard Archer says that the figures are “compelling evidence” that housing market activity is strengthening, boosted by those “looking to lock in a low rate before they start rising.”1

In July, Bank of England (BoE) boss Mark Carney indicated that the base rate could rise from 0.5% at the turn of the year.

1 Taylor, J. (2015) ‘Re-mortgaging deals spike in rush to beat rate rise’, Metro, 2 September, p.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lowest Ever Mortgage Rate

Published On: May 24, 2015 at 4:24 pm

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Categories: Finance News

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Mortgage lenders have been competing for the lowest rates, causing one to offer a record low 1.07% rate.

Lowest Ever Mortgage Rate

Lowest Ever Mortgage Rate

Yorkshire Building Society has released a two-year fixed rate deal at the lowest ever rate offered in the UK, revealed experts.

Moneyfacts’ Rachel Springall says: “There’s a real fixed-rate war going on at the moment. A lot of people were saying, ‘It’s not going to go below 2%’, but that happened months and months ago. It’s highly likely that someone will try to undercut it.”

The price war is the result of record low base rates of 0.5% and arrives soon after the UK dropped into negative inflation for the first time since 1960.

However, Yorkshire Building Society’s deal requires a 35% deposit and has a fee of £1,369.

Earlier in May, the Co-operative Bank launched the former lowest ever mortgage rate of 1.09% with a 40% deposit and £1,499 fee.

Springall continues: “Borrowers need to be aware of the full cost of a mortgage. With arrangement fees and booking fees after two years, it’s likely to be twice the amount.

“Borrowers need to see the true costs and seek out advice, because otherwise their costs could go through the roof. But it’s easy to move mortgages and it’s easy for consumers to see the deals out there.”1

1 Yeatman, D. (2015) ‘Lowest-ever rate on offer to homebuyers’, Metro, 22 May, p.2