Fixed Rates at record lows
2 Year Fixed Rates are currently the cheapest they’ve ever been.
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Cheapest 2 Year Fixed Rate Mortgages on record
2 Year Fixed rate Mortgages have been falling steadily over the last few months.
But the market has now surpassed previous lows and it isn’t just one or two lenders competing at the top of the best buys.
A number of lenders have the monies and more importantly, the confidence to lend, 6 in fact.
6 Mortgage lenders (at time of writing), are currently offering rates at below 1%.
To put this into perspective, there are a number of savings accounts currently offering you higher rates of return, then these Mortgage Lenders are charging to lend.
A small number have lenders have offered rates sub 1% in the past. Usually the lows don’t go beyond 0.99%.
Rates have consistently fallen over the last 10 years, as can be seen by the below graph.
After a brief but sharp increase in 2020 due to the Coronavirus pandemic, rates can be seen taking an equally sharp downturn, as the Mortgage and Property market recovered quicker than expected.
The below graph is based on the average 2 year fixed rates available to consumers based on a 25% deposit (75% loan to value 2 year fixed rate Mortgages):
Source: Bank of England
Are Mortgage Rates going down or up?
As can be seen by the above graph, rates have been falling over recent years and are continuing to fall slowly.
Will Mortgage fixed rates continue to fall?
If however rates do continue to fall, it can’t be by much more.
Rate are already at historical lows, and lenders need to ensure they are lending for a profit.
We personally feel, rates cannot go below 0.89%.
The cheapest 2 year fixed rate is currently at 0.92%.
This is just an opinion though, and we would love to be proved wrong.
Top 6 cheapest 2 Year Fixed Rate Mortgage Lenders
The Lenders currently offering the lowest 2 year fixed rates are:
The above is correct at time of writing.
What is the lowest 2 year fixed rate in the market
You will need a 40% deposit or equity in your home and it is available to House Purchase and Remortgage customers.
What costs will I need to consider when taking out a Mortgage?
Lenders Arrangement/Product fees: A fee the lender will charge for arranging your Mortgage.
In general, the higher the Arrangement fee the lower, the Interest rate.
Most, if not all lenders, will also provide a low/no fee option and charge a slightly higher rate as a result. These fees tend to be between 0-£999.
Broker fees: this will depend on how complex your case is. For example, whether you have any adverse credit.
To find out exactly what it could cost, get in touch with on of our Mortgage Brokers for a free non-obligatory quotation.
Solicitors fees: for an ordinary house purchase, you can expect to pay anywhere between £1,000 and £1,500, so its important to shop around.
Always check out their Reviews before choosing a Solicitor. They’re a very important cog in the house buying process.
Stamp Duty: If you are a first time buyer in England, it is unlikely you will pay stamp duty if your property is valued less than £500,000.
For non first time buyers, Stamp duty will be due on properties worth over £125,000.
Mortgage Valuation: The Mortgage Lender may charge a fee to complete a basic valuation on your property during the application process.
This will be between 0-£250. But could be more if you need to use a specialist lender, if you have adverse credit for example.
Survey fees: You may choose to carry out a more thorough assessment on your property.
The most common, being a Homebuyers report, which will cost between £300-£500.
Full Structural report, if needed, will cost in excess of £600, however these are rarely necessary.
Our Mortgage Brokers
We work with a variety of Mortgage Brokers which each specialise in different Mortgage Advice areas.
When you get in touch, simply select the reason why you’re getting in touch i.e. First time buyer, Bad Credit, Remortgage etc. And we will match you to the Mortgage Broker which Specialises in your circumstances.
All of the Mortgage Brokers we work with are whole of market, FCA regulated, CeMap qualified and have consistently great reviews.
Get in touch for a free non-obligatory conversation with one of our Specialist Mortgage Advisors for further information on how they can help you.
Speak to a Mortgage Advisor
Get in touch to speak to one of our Specialist Mortgage Advisors.