The Telegraph reported this weekend that 5 year fixed rates have dropped to below 3% for the time this year, as expectation of a base rate rise pushes back to next Spring. Brokers suggested that further cuts to 2 year fixes could follow over the coming weeks, but urged borrowers considering longer term rates not to hold out for a better deal. The Times revealed that a 0.25% base rate rise could add £250 per year to a typical mortgage, so anyone worried about the impact of higher payments should be looking to protect themselves against future increases.
Securing a mortgage is still tough however, as highlighted in the Independent on Sunday.New research from software firm Iress suggests hat 1 in 5 customers are now waiting more than 30 days for a mortgage offer, and experts say this is largely caused by stricter affordability testing and a lengthier underwriting process. Analysis of a borrower’s incomings and outgoings is more stringent than ever, so borrowers must be prepared to be asked about spending on anything from restaurant bills and internet subscriptions to childcare and pension contributions.
Elsewhere, the Mail on Sunday looked at the improvements in Buy-to-Let mortgages, but warned that landlords are subject to much tighter rules regarding gas safety, fire prevention and tested furniture, and immigration.