The latest mortgages and interest rates

With the election over, the housing market’s focus has moved onto the base rate and when it will come down and by how much. Inflation held steady at 2% in June, which is the Bank of England’s target level and has been there since May. However, as a result of concerns over high services inflation and wage growth, the money markets have pushed back the expected date of a reduction until September.

In the interim, lenders have been cutting their mortgage rates across the board, with the notable exception of those for first-time buyers, which have remained where they were. The best five-year fixed rates, on the other hand, are now under 4%.

Rachel Springall, a finance expert at Moneyfactscompare.co.uk, says:

“Fixed mortgage rates are on the downward trend, which will be a relief to borrowers looking to refinance. There is still much more room for improvement, but it has taken a few months for the lowest fixed mortgage rates to drop below the 4% mark.“

Below is a selection of this month’s best buys from Moneyfacts.co.uk:

Two-year fixed rates: 4.70% from Nationwide BS. Product fee £999. 60% LTV. 4.79% from first direct. Product fee £490. 60% LTV.

Three-year fixed rates: 4.59% from first direct. Product fee £490. 60% LTV. 4.60% from Nationwide BS. Product fee £999. 60% LTV.

Five-year fixed rates: 4.32% from Nationwide BS. Product fee £999. 60% LTV 4.34% from first direct. Product fee £999. 60% LTV.

Discounted variable: 4.84% For 2 years. From Progressive BS. Product fee £0. 75% LTV. 4.85% For 2 years. From Reliance Bank. Product fee £1,094. 75% LTV.

BUY-TO-LET (BTL)

Best two-year fixed rate: 3.54% from The Mortgage Works. Arrangement 3.00% Advance. 65% LTV.

Five-year fixed rate: 3.94% from The Mortgage Works. Arrangement 3.00% Advance. 65% LTV

Best Discounted variable: 5.00% For 2 years. From Monmouthshire BS. Arrangement 2.00% advance. 75% LTV.

If you are considering investing in the property market, the reducing cost of borrowing is good news. And there are some great properties out there at the moment. Why take at the great properties we have coming up in our next auction at Phillip Arnold Auctions.

The information we provide is our personal opinion and should not be relied upon for financial advice. Should you need financial advice or guidance please contact an appropriate professional.

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