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The mortgage rate war continues today with Halifax slashing the rate on its two year fixed deal to just 0.83%, the lowest ever two year fixed deal on record.
The 0.83% deal is available directly and through mortgage brokers but only to those making a house purchase. The 0.83% rate is fixed until 30 November 2023, after which it reverts to 3.59%. Borrowers must have at least 40% equity or deposit in the property (60% loan-to-value) and a minimum of £250,000 must be borrowed through the mortgage loan. It charges £1,495 in product fees and comes with the incentive of £250 cashback for properties with an Energy Efficiency Band of A or B or a rating of 81 or higher.
Although this new rate from Halifax is highly tempting, those considering this deal should keep in mind that its high product fees means that there may be more cost-effective deals in the two year fixed charts. As such, it may be worthwhile speaking to a mortgage broker about whether it is the best deal for them before deciding to go ahead an choose this deal. For more information about how product fees can impact the cost of the mortgage, read our story on whether homeowners should switch mortgage deals.
Mortgage borrowers with a high deposit or large amount of equity in their property will find a range of two year fixed deals offering sub-1% rates. Mortgage lenders will be keen to attract these borrowers as they are considered less risky than those with a lower deposit or equity in their home, which combined with the need to attract customers as the housing market starts to slow, has resulted in many large lenders reducing rates to attract borrowers. This could see more lenders reduce rates further, although with rates already at record lows it remains to be seen how low lenders will be willing to reduce rates.
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Of those who remortgaged in May, nearly two-thirds of borrowers chose a five year product, according to the latest LMS Monthly Remortgage Snapshot. Compared to April, this figure has increased by almost 10%. Like other sectors, average rates for a five year fixed mortgage have been increasing. In April the average rate for a five year fixed account was 3.01%, and as of June this figure is now 0.36% more, according to Moneyfacts data.
Of those who remortgaged in May, nearly two-thirds of borrowers chose a five year product, according to the latest LMS Monthly Remortgage Snapshot.
Each week the moneyfacts.co.uk content team round up the very best mortgage rates available in the UK. Compare and apply today.
Each week the moneyfacts.co.uk content team round up the very best mortgage rates available in the UK. Compare and apply today.
The average house price in the UK has increased by 16.8% since the start of the pandemic, according to Halifax. It now means that housing affordability is at the lowest level on the bank’s records. “Soaring property prices and slower wage growth have combined to stretch traditional measures of housing affordability,” said Andrew Asaam, Mortgages Director at Halifax. In comparison, the average wage growth in the UK since the pandemic began is set at 2.7%. Today, the cost of a typical UK home is over seven times more expensive than the average annual earnings.
The average house price in the UK has increased by 16.8% since the start of the pandemic, according to Halifax.
Of those who remortgaged in May, nearly two-thirds of borrowers chose a five year product, according to the latest LMS Monthly Remortgage Snapshot. Compared to April, this figure has increased by almost 10%. Like other sectors, average rates for a five year fixed mortgage have been increasing. In April the average rate for a five year fixed account was 3.01%, and as of June this figure is now 0.36% more, according to Moneyfacts data.
Of those who remortgaged in May, nearly two-thirds of borrowers chose a five year product, according to the latest LMS Monthly Remortgage Snapshot.
Each week the moneyfacts.co.uk content team round up the very best mortgage rates available in the UK. Compare and apply today.
Each week the moneyfacts.co.uk content team round up the very best mortgage rates available in the UK. Compare and apply today.
The average house price in the UK has increased by 16.8% since the start of the pandemic, according to Halifax. It now means that housing affordability is at the lowest level on the bank’s records. “Soaring property prices and slower wage growth have combined to stretch traditional measures of housing affordability,” said Andrew Asaam, Mortgages Director at Halifax. In comparison, the average wage growth in the UK since the pandemic began is set at 2.7%. Today, the cost of a typical UK home is over seven times more expensive than the average annual earnings.
The average house price in the UK has increased by 16.8% since the start of the pandemic, according to Halifax.
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