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Mortgage News

Top Mortgage News

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Remortgage from a big lender and save £3,500 on average each year
Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 14/09/2021

Homeowners whose mortgage deal has come to an end and are now on one of the six big lenders’ revert or standard variable rates (SVR) could save £3,528 on average each year. Research conducted by Habito found that just under half of the borrowers they spoke to were either paying their lender’s highest mortgage rate or were uncertain of the rate being paid.

Borrowers are being urged to switch their mortgage and take advantage of the lowest rates ever seen. A mortgage broker can help to find borrowers the best mortgage rates for their circumstances.


Oliver Dack, a mortgage adviser at Mortgage Advice Bureau said: “Rising inflation has seen the cost of living increase for all of us and with further tax increases on the way many consumers will be looking to reduce their monthly outgoings. A mortgage is often the greatest monthly cost for most homeowners. There are huge savings to be had for the majority of those with a mortgage. Homeowners on their lender’s reversion rate can easily save significant sums when switching to a lower rate. And those on a current fixed deal may find that, even after paying an early penalty charge, there are still savings to be made. A mortgage broker can help to calculate these potential savings and identify those lenders most likely to accept a borrower.”

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Landlords benefit from reducing buy-to-let rates
Molo Finance has reduced its buy-to-let mortgage rates across selected products. This includes the following reductions on its rates for landlords with a limited company or special purpose vehicle (SPV).
These deals are available for remortgages and to purchase a new buy-to-let property. They all revert to a rate of 4.41% at the end of the initial term. 
Landlords must be no older than 85 at the end of the mortgage term and earn at least £20,000 to qualify for these mortgages. The minimum loan value is £25,001 with a maximum loan of £450,000. Each product also has the option to choose a percentage fee of 1% of the mortgage advance instead of the flat fee.  The maximum loan on these options is £1.5 million at 65% LTV and £1 million at 75% LTV. The rental income will need to be at least 125% of mortgage interest calculated at a rate of 5.50%.
Francesca Carlesi, chief executive of Molo, said: “The mortgage market has never been so competitive.
“Lowering our prices gives landlords excellent options, whether they’re purchasing a property as an individual or a limited company.
“Our new rates, combined with an entirely digital approach for getting a mortgage, give investors more flexibility and allow them to go through the borrowing process at speed while saving money with Molo.”

 

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Mortgages rates see biggest cuts in 16 months

Average mortgage rates for two- and five-year fixed deals have seen the greatest decline in a single month since May 2020. Data from Moneyfacts UK Mortgage Trends Treasury Report shows that for these average rates have now fallen for the third month in a row. The latest average rate for a two year fixed mortgage is 2.38%, a reduction of 0.14%, with a five year deal average of 2.63%, a 0.12% fall.

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The best residential mortgage rates 10.09.21

Mortgage rates have remained highly competitive this week with lenders continuing to reduce rates across their mortgage deals. Homeowners looking to remortgage or move home will find sub-1% rates remain available in both these charts on two, three and five year fixed deals. Meanwhile, the first-time buyer chart has become more competitive in recent weeks with rates from as low as 1.97% now available in the chart.

Although we’ve highlighted the lowest rates across our mortgage charts, mortgage borrowers should always keep in mind that the lowest rate may not be the best, or most cost effective, deal for them. Instead, it is important to consider factors such as product fees and incentives when comparing mortgage deals as these can have a significant impact on the cost of the mortgage. Consumers unsure of which deal is right for them should consider speaking to a mortgage broker who will be able to provide advice on the best deal for their individual circumstances.

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Should you take equity release to pay off your children’s mortgage?

Rising house prices has resulted in some older homeowners unlocking the equity they have built up within their own property to gift house deposits to their children via equity release, but for those with children who already own their own home, is it is good idea to take equity release to pay off their mortgage?

A key benefit to parents gifting their children their inheritance early to pay off their mortgage early is that it will likely free up a substantial chunk of their monthly outgoings and the money can be used towards creating a more financially secure future instead, for example by increasing their pension savings or investing.

In fact, recent research by equity release advisors Key found that 1.7 million inheritors used the money to pay off their mortgage. Although Key revealed that the average age people inherit is 47, it also found that 29% of those receiving an inheritance do not do some until they are aged 65 to 74; by which most homeowners have repaid their mortgage.

As such, many parents might be tempted to gift their children their inheritance early so that it cannot only help towards their children’s future, but will also enable them to see their children benefit from the money. As Will Hale, CEO at Key, explained: “The idea of inheritance arguably works best when the person receives the support at a time in their life when it can do the most good for their long-term financial security. However, with the average age of inheritance sitting at 47 years old – when people are more likely to have built up assets – we are seeing more conversations happening about providing people with a ‘pre-inheritance’.

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Recent News

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How to save money when remortgaging

9th September 2021

This week’s announcement that National Insurance will rise next year, along with rising gas bills and inflation expected to increase over the next few months

This week’s announcement that National Insurance will rise next year, along with rising gas bills and inflation expected to increase over the next few months

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Rise in mortgage deals for holiday let investors

6th September 2021

Consumers looking to capitalise on the increase in UK-based holidays will be pleased to see that more lenders have entered this niche mortgage market

Consumers looking to capitalise on the increase in UK-based holidays will be pleased to see that more lenders have entered this niche mortgage market

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The best mortgage rates this week 03.09.21

3rd September 2021

The mortgage market continues to see high levels of competition this week as lenders fight it out to attract the least risky borrowers with historically low interest rates.

The mortgage market continues to see high levels of competition this week as lenders fight it out to attract the least risky

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Best savings, mortgage and credit card deals 02.09.21

2nd September 2021

Every week we highlight some of the best personal finance deals currently available. These deals are selected based on their competitive rates and features that benefit consumers

Every week we highlight some of the best personal finance deals currently available

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Most Popular Mortgage News

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Two and five year mortgage rates hit historic lows

11th May 2020

Although the number of mortgage deals have almost halved since March, the average mortgage rates on two and five-year fixed deals have hit historic lows

Although the number of mortgage deals have almost halved since March, the average mortgage rates on two and five-year fixed deals have hit historic lows

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Mortgages rates see biggest cuts in 16 months

13th September 2021

Average mortgage rates for two- and five-year fixed deals have seen the greatest decline in a single month since May 2020.

Average mortgage rates for two- and five-year fixed deals have seen the greatest decline in a single month since May 2020.

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How to save money when remortgaging

9th September 2021

This week’s announcement that National Insurance will rise next year, along with rising gas bills and inflation expected to increase over the next few months

This week’s announcement that National Insurance will rise next year, along with rising gas bills and inflation expected to increase over the next few months

Read More
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Should you take equity release to pay off your children’s mortgage?

10th September 2021

Rising house prices has resulted in some older homeowners unlocking the equity they have built up within their own property to gift house deposits to their children via equity release

Rising house prices has resulted in some older homeowners unlocking the equity they have built up within their own property to gift house deposits to their children via equity release

Read More

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