Low-deposit buyers are being helped by low interest rates, according to moneyfacts.co.uk.
Despite many mortgage rates slowly rising over the last 12 months, the average fixed rate for mortgages over two and five years for buyers who only have a 5% deposit have fallen.
It was widely anticipated that there would continue to be a rise across the board this month, as the Bank of England’s base rate – the main level that sets the guidelines for interest rates across the board - was expected to increase.
However, the base rate didn’t move, meaning that the higher loan-to-value products, such as 95% over two and five years, dipped to an average of 4.06% (down from 4.11%) and 4.43% (down from 4.49%), respectively.
The news comes as lenders continue to strive to attract new borrowers, with many including various incentives and fee offers, giving potential home-buyers the power to choose the mortgage that’s right for their own circumstances.
Speaking about the current rates and the buying process, group managing director of The Mortgage Hut, Chris Schutrups, said:
“You should check the house prices around your desired area to see what mortgage product you should be realistically looking at.
“Using a mortgage calculator will help you see if the property that you’re looking at is affordable.
“These rates won’t be around for much longer, so if a buyer feels like they’re ready then they should think about acting before the record rates disappear and they end up having to pay more.”
If you're looking for a mortgage and want to find out if you could benefit from the current low rates, contact one of our specialists or call 0300 303 2640 and they will happily walk you through your next steps.