Homebuyers and those looking to remortgage are enjoying the lowest mortgage rates ever seen - but you’ll need to hurry if you want to take advantage as the top deals don’t hang around for long.
Yorkshire Building Society has just introduced what it claims is the lowest mortgage rate ever offered in the UK. The two-year discounted standard variable rate deal is, however, only available to those looking to borrow up to 65% of the value of their property, so you’ll need a hefty deposit to qualify, or a large amount of equity in your property if you are remortgaging.
There’s also a £1,495 product fee to factor in, although you can opt for a slightly higher rate with a lower £995 fee if it’s more cost effective. It’s important not to look at the interest rate in isolation, but work out the total cost of a deal, including fees.
As this is a variable rate deal, remember that the rate could change during the two-year term of the deal. If you want peace of mind that your payments won’t go up should interest rates rise in the next couple of years, there’s a good choice of competitive two-year fixed rate mortgages available.
Of course, Yorkshire isn’t the only lender to offer rock-bottom rates. Earlier this month Atom Bank launched a five-year fixed rate deal that went straight to the top of the best buy tables and attracted a lot of attention. Huge demand meant Atom had to withdraw the deal just seven days later, but it is still offering a range of competitive deals.
You’ll need to get your skates on if you spot an unbeatable mortgage deal, as lenders have limited funds available at these rates, and once they’re gone, they’re gone.
If you’ve spotted a mortgage you really want, but are currently tied into another mortgage, remember that it could still be possible to grab the deal you’re after.
Lenders will provide remortgage offers which are valid from between three and six months from the date they are issued. So, even if you’ve got three months left to run on your existing deal, you can apply for your new mortgage now, and arrange with the lender for it to start as soon as your current deal finishes.
Grab a ‘record-breaking’ mortgage deal while you can!