According to the latest credit conditions survey, swap rates (money market rates) are falling, and mortgage lenders therefore expect interest rates to fall in Q4.

Buy-to-let is expected to see even greater falls in pricing in the coming three months, after significant drop in the cost of loans in Q3.

Of course many banks and building societies use their saver’s money to fund their borrower’s mortgages, but swap rates are often seen as one of the biggest influences on fixed rate pricing.

The lowest mortgage rate I could find today was a staggeringly low 1.24% fixed rate for 2 years (Halifax) for a residential mortgage if you have a 40% deposit and 2 year tracker at 2.29% for Buy to Lets with Nat West.

Even 90% mortgages are coming in under 3% nowadays which shows there is a definite improvement in lender’s willingness to lend to borrowers with a deposit of 10% or less. This begs the question…How low can they go?

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Recent posts

The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.

The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income. 

According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes. 

More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.

There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.

The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers. 

Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer. 

A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.