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The Great Mortgage Rate War


The great Mortgage Rate Wars keep on raging with, as predicted, more lenders wading into the frenzy for your business.

Nationwide are no longer alone with a 5-year fixed at under 1%, joined now by a slightly better looking 0.99% 5-year fixed from HSBC.

But the plaudits this week go to Halifax for blowing everyone out of the water with their new 2-year fixed rate priced at just 0.83% and a new 5-year fixed at 0.98%, (the latter for remortgages only).

Whilst this is all fine and dandy for those with at least 40% deposit or equity, have no fear! The other end of the spectrum is also not immune to the ravages of the rate war.

Those with a 10% deposit can now access rates from 2.19% for a 2-year fixed or 2.74% for a 5-year fixed, considerably cheaper than a few months ago.

Meanwhile, those with a 5% deposit can get a 2-year fixed from 3.09%, again lower than a few weeks ago.

What all this means is that we are getting into the realms of it being potentially cheaper to buy and pay a mortgage than it is to rent the same property. The key of course is raising that deposit in the first place.

As an example, if you were to obtain a mortgage of 75% LTV on a property costing £500,000 over a 25-year repayment term, you would be paying circa £1,450 per month on a 5-year fixed rate.

With a 10% deposit, the cost would be circa £2,080 per month.

With lenders still pushing for business, well-capitalised, and with cheap money to lend, we may see some more extraordinary headlines in the future.

Have a great week.

Best Mortgage Rates

In terms of mortgage rates, for standard residential mortgages, borrowers can obtain 2-year fixes at 0.83% (3.20% APRC) and 5-year fixes from 0.99%, (2.60% APRC) whilst variable tracker rates are around from 1.00%, (3.20% APRC).

Those looking at Buy-To-Let can now obtain products from 1.19%, (4.40% APRC) for 2-year fixed or 5-year fixes are available from 1.69% (3.70% APRC).

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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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