Now may be the best time to get a mortgage. It’s never been cheaper to get a home loan. There are now 25 mortgages loans with rates lower than a basic savings account.
It may be the perfect time to be in the market for a mortgage. Borrowers have their choice of low interest afford rates. Home loans at the Bank of England have a new cheap fixed rate and are reported to be a record low.
The interest rates currently offered on savings accounts are higher than those for low-interest mortgages. Mortgage cost have fallen and research shows there are 25 home loans priced below the best easy access savings deal.
Borrowers have no shortage of choice now that rates are so favorable. The Bank of England, Recent figures have an average fixed rates at record lows.
The best rates are currently on the two-year fixed rate mortgages with over 25 mortgages now available. These rates are better than the best easy access savings account that pays 1.5 percent. The record low rates require borrowers to pay large down payments or make big deposits. These escrowed funds are typically almost half of the value of the property.
These low-interest rates create access to cheaper funding and lower inflation.
‘The Funding for Lending Scheme, has pushed mortgages cost down and also increased the availability of deals. At the start of 2014 economist and markets were suggesting a first base rate rise. Lenders who took part in the Funding for Lending Scheme were able to borrow cheaply from the government. They needed the savings of their patrons less on their savings balance sheets to fund the cost of mortgages. This explains why savings rates are so abysmal today. “The next six months are shaping up to be the best-ever window to secure a low-interest rate if you are looking to buy or remortgage, “Said Brian Murphy, of brokers Mortgage Advice Bureau. These rates are available now, but no one knows when or if they will increase. Brokers say in the next several months that cheaper fixed rates will be widely available. Low savings account interest rates are not spurring savings among people so investing in a home may be a very savvy financial decision.