Record Low Mortgage Rates

By in Blog with 0 Comments

The Yorkshire Building Society has recently launched a mortgage rate of 0.89% for 2 years, reported to be Britain’s lowest ever rate. This deal is not fixed and is restricted to house buyers borrowing no more than 65% of the property’s value, mortgage rates.

Low mortgage rates (along with Government housing schemes) are helping to attract first time buyers into the market. The Council of Mortgage Lenders report that there were 342,000 first time buyers in the last 12 months, the highest level for nine years.

Headline grabbing rates are sometimes offered by lenders over a short time frame to help drive higher lending volumes but the trend is true across the market. Average mortgage rates have fallen over recent years and even more since the start of the year. In 2014, the average mortgage rate for 2 year fixed mortgages was 2.4%. By March 2017, the average rate had fallen to 1.37%. For buyers looking to fix for longer, the average rate for a 5 year fixed deal is now 2.15%, down from 3.52% in 2014. These rates assume a loan to value ratio of 75%.

While inflation looks set to overshoot its target for some months to come, the slowdown in wage growth and squeeze in consumer spending means that a rise in interest rates looks unlikely to occur in the short term. Could this mean that we have not yet seen the lowest ever mortgage rate?

For more of our property related blogs please see-

Why not like us on Facebook for more tips-

Share This
George Tatham-Losh

Since forming the business in 2009, our founder, George Tatham-Losh, has become highly regarded as the local go to expert for advice on maximising property values and getting the most out of property investments, regularly speaking at events and holding well attended seminars. Born and raised in Cheltenham, George knows the town and County like no other and knows what works in the area. Alongside George is a specialist team of agents with a wealth of experience to help you sell, buy, let or rent property in Gloucestershire.

Blog Post Disclaimer

This is a personal blog. Any views or opinions represented in this blog are personal and belong solely to the blog owner and do not represent those of people, institutions or organizations that the owner may or may not be associated with in professional or personal capacity, unless explicitly stated. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.

All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.

Downloadable Files and Images Any downloadable file, including but not limited to pdfs, docs, jpegs, pngs, is provided at the user’s own risk. The owner will not be liable for any losses, injuries, or damages resulting from a corrupted or damaged file.

Comments Comments are welcome. However, the blog owner reserves the right to edit or delete any comments submitted to this blog without notice due to :

  • Comments deemed to be spam or questionable spam.
  • Comments including profanity.
  • Comments containing language or concepts that could be deemed offensive.
  • Comments containing hate speech, credible threats, or direct attacks on an individual or group.

The blog owner is not responsible for the content in comments.

This blog disclaimer is subject to change at anytime.

If in considering action upon the contents of this blog, one should always seek professional advice.

We Won Banner We Won Banner