Independent Financial Life Planners Bishop's Stortford: Mortgage rates at an all time low

Thursday, 4 August 2016

Mortgage rates at an all time low

Enable’s experienced IFAs in Bishops Stortford can see that borrowers are in a period of the lowest two-year, five-year and 10 year fixed mortgage rates on record. The average two-year fixed mortgage has tumbled from 2.68pc to 2.48pc in the last 12 months, according to financial data firm, Moneyfacts. Five-year fixes are at 3.08pc and the average 10-year fixed rate mortgage has dropped from 3.74pc to 3.37pc in a year. The latest rates are the lowest ever recorded by Moneyfacts.

A number of factors have contributed to these tumbling mortgage rates. Swap rates, the inter-bank lending rates, dived after the UK voted to leave the EU meaning providers can borrow cheaply, they are able to pass on savings to customers. This has especially impacted the 10-year fixed mortgage market. Longer term deals are now widely available as providers can afford to offer them. At the start of the year there were 80 10-year fixed mortgages – in July this had increased to 130. Competition is also fierce between providers at the moment, driving down mortgage rates and deals could get even cheaper.

Standard Variable Rates may also come down but there are much better deals out there at the moment the average SVR standing at 4.8pc a cut in Bank Rate will have little effect. Borrowers sitting on this option would be significantly better off if they shopped around and opted for a low fixed rate deal instead. Borrowers should not expect mortgage rates to continue falling forever. The Government backed Funding for Lending Scheme, which started lending providers cheap money in 2012, is coming to an end in 2018 when the cash runs out rates could start to rise.

Your home could be at Risk if you do not keep up the repayments.

Source: The Telegraph

Issued by: Enable Independent Financial Life Planners •  25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.