Some experts say that mortgages are now easier to afford than they have been in years, although this may be challenged by first time buyers who are struggling to get their first steps on the property ladder. Despite what should be comforting news, those who are still worrying about what Brexit and Trump may mean for their home finances are still proceeding with caution. Wimbledon estate agent, Robert Holmes advises, “If you’re concerned about what recent political and economic changes may mean for you, it’s a good idea to snap up one of the cheap fixed-rate deals that are currently on the market.”
Whilst the CML reports that interest rates in August were dropped from an average of 0.5% to 0.25%, Trump’s win has led some economists to predict a rise in costs to UK borrowers. The reason for this concern is that the president elect has promised to spend billions on infrastructure and cut down on tax bills; moves which are both likely to send the US central bank to raise interest rates- in turn impacting on worldwide financial markets.
According to Belgravia estate agent, Best Gapp “In such uncertain times it makes sense to grab the opportunity for a fixed rate while you can. At such low rates you can’t go wrong, but they won’t be around forever.”
So, where do you go to find these great deals? As of November 2o16, there are plenty available on the high street. Coventry Building Society is currently leading the way with a five year fixed term mortgage coming in at just 1.84%. With this deal you’ll be able to secure a maximum of 50% of the value of your property along with a free valuation of your current home. There’s a £999 product fee, but this can be added to your mortgage if you need to cut down on up-front costs.
Tesco are also offering a five year fixed term, this time at a rate of 1.89% for 60% of the property’s value. A £995 product fee applies.
Leeds Building Society do five year mortgages too- 1.99% is available for up to 75% of the property cost. There’s also an added incentive with a £1K cashback sum, but the product fee is slightly higher at just under £1,500.
Most mortgage offers are valid for three months, so there is the possibility of switching if you find a better deal. Newington Green estate agent, M&M Property suggests “It’s always worth shopping around, so if you find something better before the end of your offer period, most providers will let you switch.”
It’s certainly been an interesting year full of economic twists and turns. Smart property owners are always on the look-out for a great new deal, and there’s certainly no harm in looking for a five year fixed term mortgage until things settle down.