Mortgage Rates Halve in a Decade
Undoubtedly there have been a lot of changes in the past 10 years after the financial crisis of 2008 when the markets plummeted and people were unsure as to what would happen next. However, now in 2019, there is still uncertainty on the cards surrounding Brexit but as with all uncertainty there is often a silver lining somewhere.
If you’re still wondering as to what silver lining I could be referring to, I’m of course referring to the fact that interest rates, well more specifically, mortgage rates have now been at a record low for a decade and in that time, the rates have halved from what they were. Good news for those who are currently making repayments on their property.
Back in 2009, the Bank of England, dropped the Base Rate to just 0.5% in the hope of stabilising the economy in the wake of the global financial crisis.
A decade ago, you could expect to see the average 2-year Fixed Mortgage to have an interest rate of 4.79%, today the same mortgage is almost half that at 2.49%! The same thing applies to the average 5-Year Fixed Mortgage which is now around 2.69%.
Much of the low interest rates has been determined by the competition between lenders and this is consistent and reflected in the number of lenders offering greater loan to values and extended mortgage terms.
There really has never been a better time to secure a great mortgage deal and ensure that your repayments remain low for a longer time period. Why not speak to a specialist Mortgage Adviser to find out what you can borrow and how much money you can save per month?
Give us a call of 03333 44 85 11 or email email@example.com and we’ll be more than happy to help.