Lenders launch lowest-ever mortgage rates

Lenders are keen to attract buyers and homeowners coming up to remortgage by launching some of the cheapest fixed and base-rate tracker mortgages ever seen.

With the volume of mortgage lending dropping to its lowest level in a decade, lenders have launched some cracking deals in the past couple of weeks.

For example, Private Finance has access to a two-year tracker at just 1.49 per cent over bank base rate, giving a pay rate of 1.99 per cent. There is a £999 fee and a 40 per cent deposit, or equity in your home if you are remortgaging, is required. There is no maximum loan size so this is very useful for those requiring larger mortgages.

For those who are worried about rising interest rates and who want to remortgage onto a fixed rate for security, Private Finance can offer access to a five-year fix at 3.75 per cent, with £699 fee. This is available for those with 50 per cent equity in their homes.

Melanie Bien, director of Private Finance, says: ‘With the launch of some extremely competitive fixes and trackers in the past couple of weeks, which are close in price to the cheapest standard variable rates, those buying or remortgaging who have significant deposits or equity in their home, will find themselves spoilt for choice.

‘But not everyone has such a large amount of money to put down so it’s also worth talking to Private Finance if you have a more modest deposit or level of equity in your home. Higher loan-to-values are available, and for the right sort of client who has the attributes which make them attractive to the private banks, there may not be a significant uplift in the pay rate.’

Those interested in taking advantage of one of the cheapest mortgage rates ever should contact their usual Private Finance consultant, or call us on 0800 980 8777.