The End Of Cheap Mortgages

Despite Brexit no that’s not the case certain lenders have adjusted their rates upwards because no one, including the lenders know exactly how the property market in Wolverhampton or indeed the West Midlands will react, so they are protecting their profit margins. Conversely if you are looking for a five-year fixed-rate deal or a 90% mortgage, these rates remain incredibly competitive at the moment.

Mortgage costs have risen in 2018 In the last 3 months, both fixed and variable rate mortgages have become more expensive. A year ago, fixed-rate deals were just starting to rise from historic lows, and prices have increased steadily over the last 12 months, with two-year deals now 0.2% more expensive. Five-year fixes, however, have risen in cost at a much slower level. In November last year, the Bank of England base rate increased from a historic low of 0.25% to 0.5%, before rising again to 0.75% in August 2018. As you might expect, this means deals that are priced depending on the base rate have gone up in cost, although by significantly less than the 0.5% base rate rise.

Fixed-rate bargains for buyers with small deposits The number of fixed-rate deals available to first-time buyers and home-movers has increased in the last year. There are 20% more mortgage products at a 75% to 95% loan-to-value ratio (LTV) than this time last year, with the number now standing at 2,962. In terms of cost, it’s been a good year for first-time buyers with small deposits, with 90% mortgages now around half a percent cheaper than they were a year ago.

Whether you’re a first-time buyer or home mover, you can get expert help finding the right mortgage by calling Apple Finance, Mortgage Brokers on 01902 213201

 

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