14th March 2018
300 deals out there for buyers with a 5% deposit
We are keeping an eye on the latest mortgage rate deals for our clients. Both good and bad. It might be time to think about re-mortgaging if you have a fixed rate deal that expires within the next few months. Please do email or call us if you would like us to take a look at what is best for you at firstname.lastname@example.org or on 01242 226353
The number of deals for buyers with a deposit of only 5% has now topped 300 for the first time in almost 10 years, according to Moneyfacts.co.uk.
Charlotte Nelson from Moneyfacts, said: “The numbers for this month were improved by eight lenders re-entering the market.
“Providers know that many borrowers on their mortgage books, who are coming to the end of their mortgage, may want to take advantage of the low rates on offer elsewhere.
“So, the introduction of new deals at 95% will give the providers’ mortgage book a new zest for life.”
The average rate on 95% Loan to value has also fallen over the past six months from 4.16% to 4.02% – despite the Bank of England base rate rise in November.
The typical rate was at 6.39% in April 2008, Moneyfacts data showed.
However, rates are likely to creep back up in the coming weeks, according to Nelson.
She said: “Swap rates have been rising for some time, and now three-month London Inter-bank Ordinary Rate (LIBOR) has started to rise along with the expectancy that a base rate rise in the near future is probable.
“In fact, fixed rates in other areas have started to rise to compensate for the higher swap rates.
“With a similar scenario prior to November’s rate rise, it is now not a matter of if rates on 95% Loan to value will rise, but when.”