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Borrowing Costs Continue to Drop


The Halifax September House Price Index was published this morning showing that Annual house price growth had slowed to 1.1%, which was down 0.4% on last month. The average house price according to Halifax now stands at £232,574.

As we approach Halloween and the Brexit endgame it’s no surprise price growth is slowing, but the horror show many predicted hasn’t played out.

Extremely low borrowing costs continue to make property affordable while the strength of the jobs market is giving people confidence amid the chaos.

Transaction levels are lower than they have been, but there is still activity as people take advantage of the buyers’ market and lock into ultra-competitive fixed rates for peace of mind.

Despite all this, the Housing Market itself remains pretty much on long term trend with transactions set to be around the 1.2m level this year. Yes, prices are up and down dependent on location, and mortgage approvals were down a touch in August, but given that we’re at the biggest political juncture for generations, the market is performing far better than expected.

It is situations like this that provide opportunities for many and any certainty returning will see things improve dramatically pretty quickly.

As usual, all the shenanigans are having a pretty marked effect on the markets. SWAP rates are rising and falling depending on the anticipated Brexit situation.  5-year money is still cheaper than 2-year money.

Meanwhile, the Bank of England seems to be stuck in a time loop of “rates may go up quicker than you think” juxtaposed against “the next rate move could be a cut”. This does not make it easy for people to make decisions.

These low borrowing costs continue to be passed on to borrowers with lenders continuing to cut fixed rates to entice borrowers. 5-year fixes are now as low as they have ever been at just over the 1.5% mark which really is incredible value. For those looking to remortgage within the next six months now is the time to make enquiries and try to lock into one of these competitive products.

Rate wise, for standard residential mortgages, borrowers can obtain 2-year fixes at 1.19%, (3.75% APRC) and 5-year fixes from 1.54%, (3.26% APRC) whilst variable tracker rates are around from 1.18%, (3.78% APRC).

Those looking at Buy-To-Let can still obtain products from just 1.37%, (4.89% APRC) for 2-year fixed or 5-year fixes are available from 1.86% (4.32% APRC).

To take advantage of these and other competitive mortgage products contact us here.

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Andrew Montlake

Written by Andrew Montlake

Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994. As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company. As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking. Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.

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