Lenders are likely to keep fixed mortgages at their rock-bottom rates for at least the first quarter of 2017, as research from Moneyfacts shows that two-year fixes are at their lowest for 12 months.
The data showed that the average two-year fixed rate reached 2.31% today, compared with 2.59% recorded the same day a year earlier.
Equally, five-year fixes are also lower than this day in 2016, falling from 3.27% to 2.92%.
Rachel Springall, finance expert at Moneyfacts, said there was still a keen drive to lend to consumers but there were events on the horizon such as a potential Bank Base Rate rise that could impact this.
“In terms of the first quarter of this year we’re likely to see prices stay quite low and even historically low. There might be a couple of the lowest of the low rates that disappear as lenders revisit their pricing but otherwise we’re still going to see these rates around,” she added.
John Charcol’s product technical manager Simon Collins said that many consumers were likely to opt for longer-term fixes due to uncertainty about the future of the UK’s economy.
“The popularity of two-year fixes is starting to shift as we’re not expecting house prices to grow as much as they have done in recent years and the number of housing transactions is probably going to go down. We might see more people enquiring about two-year deals but ending up taking a longer-term product as a result. Two years is a very short time in the mortgage market and the economy right now,” Collins explained.
“These deals might regain some of their popularity and become more viable when we know what Brexit’s going to look like. If you take a two-year deal now you’re going to come out slap bang in the middle of all the negotiations so hence more people turning to five and seven-year fixes.”r update here...
If you are thinking about raising money on a BTL property that you own, have you considered using a 2nd charge lender? The second charge market place is becoming more appealing to some borrowers who are looking to raise finance for other projects or refurbishment work. There are some great deals available upto 80% LTV with some lenders even offering a scheme where you don't have to make any monthly repayments, you just pay the loan and the interest back at the end of the term. If you would like to find out more please get in touch.
2nd charge lending is arranged by introduction.
Using the right tool for the job is equally important when arranging finance on your investment properties. Cutting corners and not using a mortgage product where the lenders are happy for you to let out your property on a room by room basis could lead onto all sorts of problems in the future. If you want to talk to an expert in this field field, please get in touch. We have been helping property investors expand their portfolios in this market and have access to specialist lenders who are more than happy for you to let out your property on a room by room basis.
With many home owners enjoying the benefits of the low base rate it is a dilemma for many whether to switch to a fixed rate or not. There are some great rates available within the fixed rate market place with 5 year fixed rates as low as 2.34%. So now could be the perfect time to take advantage of the deals that are out there. If you would like a free review of your current mortgage to discuss what is available then please give us a call on 01455616999 to arrange an appointment.
(2.34% 5 year fixed is available at up to 65% LTV the rate was correct at the time of publication but is subject to change).
It will be interesting to see the impact on the BTL market after  the changes to mortgage tax relief system that the chancellor recently announced. Not sure we will see the rise in Ltd company lending that some sections of the market are predicting. The limited products available and the higher rates that you normally associate with those products will seriously cause higher rate tax paying landlords to think twice before they invest.  http://www.mortgagesolutions.co.uk/your-community/pros-and-cons-of-using-limited-companies-for-buy-to-let-marketwatch/?utm_source=Adestra&utm_medium=email&utm_term=&utm_content=&utm_campaign=Marketwatch_News
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Great turn out at the Coventry PIN (property investors network)meeting last night. Speed networking was a great way to meet more people in the room to. We provided the mortgage and finance update as usual sharing some of the best Buy to Let mortgage deals together with a round up of residential, bridging and commercial finance deals available. I you would like to find out more information about some of the great deals available, please get in touch.
Hope Financial Services provides the Mortgage & Finance updates at the Coventry and Nottingham PIN (property investors network) meetings on the 2nd and 3rd Tuesdays of each month. So if you are looking for a networking event that combines informative speakers together with the chance to meet with other like minded property enthusiasts, then contact us for details and we can provide you with a discount code for your first meeting.
Fantastic Fixed Rates - Has there ever been a better time to look at fixing the interest rates on your mortgage? There is a battle of rates between the high street lenders, which is driving down the cost of fixed rate mortgages for both Purchases and Re - mortgages alike. If you would like to find out how we could help you search the whole of the market and find the deal that suits you best, complete the contact us section or call on 01455 616999.
With pension annuity rates still at record lows, plus the relaxation of pension fund laws, now could be the time to look for an alternative to traditional pension annuities. The demand for private rented accommodation  is high with housing stock at record lows this is expected to continue for the foreseeable future. With all these factors aligned, now is a great time to look at investing in property and specialist Buy to Let lenders are looking to help clients change the way they invest for their retirement. At Hope Financial Services we have access to lenders not available on the high street, who place no restriction or maximum age limit on there Buy To Let lending, with excellent low rates available, the yields on the right property investment could outstrip the alternatives. Find out how we can help you call today on 01455 616999.