Barclays, Santander and Nationwide customers are being told to act now to secure the lowest mortgage rates available for more than two years.
Mortgage holders and borrowers are being urged to fix their rates now. However, some advisers are also urging caution – and say more interest rate cuts could be in the pipeline.
Barclays has unveiled a new five-year fixed rate at 3.71 percent for those purchasing homes with a 40 percent deposit. This closely follows Nationwide‘s deal of 3.74 percent.
Chris Sykes, a mortgage broker at Private Finance, expressed astonishment at the plummeting rates. He suggested that banks’ profit margins on the best deals are likely “wafer thin”.
Aaron Strutt, product director at Trinity Financial, also backed the deals. He said: “If you are looking for a mortgage at the moment, there is a good choice of rates.”
Adrian Anderson of Anderson Harris told The Telegraph: “We’ve had a lot of prospective clients getting in touch with us. There’s a price war, which is good news for consumers. Lenders are pricing in future base rate drops.”
Rohit Kohli, director at The Mortgage Stop, stated: “It may be a great time for many to lock in a rate that they feel gives them an affordable monthly payment.” However, he cautioned that the upcoming Halloween Budget could push rates back up, reports Birmingham Live.
Patricia McGirr, founder of Repossession Rescue Network, commented: “Rates might go down again, but waiting could mean missing the chance for peace of mind.”
However, Mike Staton of Staton Mortgages warned: “Whilst fixing in may seem tempting, there is a wave to be ridden that I feel will lead to lower rates.”
And Ray Boulger, of John Charcol, said: “Trackers are still the go-to option for me. The short-term (and medium-term) trend for fixed-rate mortgages is for further falls, but rates are now anticipating more than just the next 0.25% cut [to the base rate], so I expect a temporary lull in the downward trend of the most competitive rates.”
