Mort­gage rates low­est since 2007

Birmingham Post - - PERSONAL FINANCE -

FIRST-TIME buy­ers are ex­pe­ri­enc­ing some of the low­est mort­gage rates on record - de­spite the re­cent Bank of Eng­land base rate rise, a web­site has found.

While many first-time buy­ers may have been wor­ried about the im­pact of the ris­ing base rate on low-de­posit mort­gages, Money­ said av­er­age two and five-year fixed rates for peo­ple with only a 5 per cent de­posit saved have reached the low­est lev­els on its records go­ing back to 2007.

But bor­row­ers may need to watch out for any fees that come with these deals – as while rates have fallen, av­er­age charges have jumped by over £200 in the past year.

Money­facts said the av­er­age two-year fix on the mar­ket for some­one with a 5 per cent de­posit now stands at 3.73 per cent, down from 4.16 per cent in Septem­ber 2017.

For some­one with a 5 per cent de­posit look­ing to take out a five-year fixed-rate mort­gage, the av­er­age rate on of­fer is 4.08 per cent, com­pared with 4.5 per cent in Septem­ber 2017.

Bor­row­ers with 5 per cent de­posits may also find they have more choice.

The num­ber of lenders in this sec­tor has jumped by 10 in two years to stand at 58, Money­facts said. But it also said the av­er­age fee for bor­row­ers with a 5 per cent de­posit tak­ing out a fixed deal has in­creased from £726 a year ago to £936.

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