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).