What the papers say – 4th and 5th April 2015

Figures in this weekend’s Financial Times revealed that the average 2 year fixed rate has dropped to an all time low of 2.98%, due in part to a fall in inter-bank lending rates as well as the continuing intense competition between lenders for the top spot. This is good news for borrowers, with the Mail on Sunday reporting that this drop in average rates has reached right up to include higher loan-to-value mortgages as well. First-Time Buyers can now secure an average of 4.93% for a 95% LTV deal, but by increasing their deposit from 5% to 10% they can cut that rate significantly, as well as potentially increasing their choice of lender.

With mortgage rates so low, those considering using their new pension freedoms to invest in Buy-to-Let could secure a very competitive deal, but experts in the Sunday Times warned that potential landlords need to consider factors including their tax liabilities and the expenses involved in maintaining and letting property. Other tips include speaking to local letting agents to establish rental demand, and getting advice on securing a mortgage as an older borrower.

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