Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24
Stock & Crypto Markets Going into December 2024 - 2nd Dec 24
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

First-time Buyer Mortgage Interest Rates Recover from Base Rate Rise

Housing-Market / Mortgages Jan 23, 2018 - 06:06 AM GMT

By: MoneyFacts

Housing-Market

While the majority of rates in the mortgage market have started to edge up, research from moneyfacts.co.uk shows that some higher loan-to-value (LTV) mortgage rates have actually fallen since the base rate rise.


Charlotte Nelson, Finance Expert at moneyfacts.co.uk, said:

“This is great news for first-time buyers, who often feel they bear the brunt of every negative change in the mortgage market. With the Bank of England increasing the base rate in November, many would have expected inflated rates, particularly for the higher LTVs. In fact, the average two-year fixed 95% LTV mortgage rate has fallen by 0.12% in just three months.

“Providers have started the new year with a bang, as they compete to be seen as the go-to lender for first-time buyers. Many lenders are likely to be looking to get new borrowers into their mortgage books. Especially as older borrowers are likely to be coming to the end of their mortgage term, it seems prudent for lenders to replace them with new customers.

“In the run-up to the base rate rise, providers had already started to increase their rates. A few months later, rates have started to fall again, but both the average two and five-year fixed rate have yet to recover to the moneyfacts.co.uk record lows seen in January 2017.

“The products on offer aren’t just standard products either, with an array of different incentive packages and fees allowing borrowers to tailor their mortgage to their own needs. Borrowers at 95% LTV could receive an average amount of £419 in cashback on a fixed rate deal, which is a welcome boost to those who are cash-strapped.

“While rates falling can only be considered a good thing, borrowers will find that high-LTV rates are still significantly higher than the rest of the market. For example, the average two-year fixed rate at 90% stands at 2.65% today – meaning borrowers who are able to save the extra 5% could save a whopping £153.22 a month, or £1,838.65 a year*.

“For once, borrowers looking at the highest LTVs are starting to positively buck the overall mortgage trend. However, as first-time buyers know all too well, what can fall can also rise again. Therefore, borrowers looking to step on the ladder should start considering their options now to prevent missing out.”

*Based on a £200,000 loan over 25 years.

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in