Continuing cuts in lenders borrowing costs have pushed mortgage rates down to their lowest level since the credit crunch began.
With competition between lenders also hotting up, we have seen some lenders cutting their rates on a weekly basis with those with a large amount of equity benefiting most. Nationwide is the latest lender to cut rates, and has capped their best deals at 60% of the property’s value. The new rates take effect from 28th August, with those borrowers looking to remortgage being offered lower rates then those moving home.
With some experts expecting interest rates to fall further, there is the temptation to hold off making a decision, but this is a game with very high stakes. Playing the waiting game, could result in borrowers reverting to their lenders standard variable rate where even a couple of months at this higher rate, could wipe out any future gain. Compounding the risk is the rate at which house prices are falling. This could tip borrowers into a higher bracket when calculating the percentage of borrowing, resulting in a higher rate.
L&C’s Ratecheck provides the solution to this problem, as before completing on your new mortgage, you have the opportunity to review the market again, and check for better deals.