Independent Financial Life Planners Bishop's Stortford: Mortgage rates at record low

Wednesday, 16 November 2016

Mortgage rates at record low

Britain's second-biggest mutual lender, Yorkshire Building Society, has recently revealed a mortgage at 0.98pc. It is the lowest rate ever offered and the deal is the cheapest nationally-available rate to anyone re-mortgaging. The way it works is that it offers a "discounted rate" which tracks the lender's standard variable rate, currently 4.74pc, at a 3.76pc discount when the lender's standard variable rate falls or rises, the rate will also move down or up in line. As with other low rate mortgage’s these arrangements often come with large fees, £1,495 for the Yorkshire Building Society and early repayment during the discounted period incurs a 1pc charge.

During this year mortgage rates have been falling rapidly with the Bank Rate cut in August continuing to fuel this pattern. The Yorkshire building society is one of several lenders which have dropped their rates for high-value borrowing recently it’s available for borrowing of up to £5m.

Barclays also recently reduced its rate for mortgages between £1m and £3m from 1.85pc to 1.49pc, fixed for two years. Santander cut its five-year fixed rate to 2.09pc from 2.59pc in September for those borrowing between £250,000 and £3m. According to comparison site Moneyfacts, the average two-year fixed mortgage rate is now at 2.34pc, down from 2.67pc this time last year.

David Hollingworth, of London and Country, said that this option would be more attractive to those borrowing a larger amount. But he added. "You've got to be careful not to be purely drawn to the fee, and you also have to keep in mind that this is linked to standard variable rate.” Enables IFAs in Bishops Stortford can help you find the right mortgage to suite your needs.

Your home may be repossessed if you do not keep up repayments on your mortgage.

http://www.telegraph.co.uk/personal-banking/mortgages/lowest-ever-mortgage-rate-of-098pc/

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

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