Mortgages rates continue to fall to record lows with NatWest the latest lender to launch a sub-1 per cent five-year fixed-rate deal this week. Available to those with a 40 per cent deposit or similar level of equity in their home, the 0.99 per cent fix comes with a £995 fee. With Halifax offering a two-year fix at 0.83 per cent (with £1,499 fee) and 0.89 per cent available from HSBC (with £999 fee), low-risk borrowers are finding there are several cheap products to entice them.
However, given the popularity of such mortgages, those borrowers keen to secure one of these loans need to move quickly. New research from Money facts shows that the average shelf life of a mortgage is 21 days. Equal to the lowest ever recorded. Those who don’t get their mortgage application in and have the rate ‘reserved’ within three weeks. Are finding that deals are being re-priced higher once the lender runs out of the funds it has allocated to that product.
This is no real surprise as lenders reduce rates ever lower to attract business. And with the housing market continuing to be buoyant as buyers seek more space. Both inside and out, cheap borrowing is enabling buyers to afford properties. That they may only have been able to dream about before.
The best way to avoid being disappointed and missing out on the mortgage. You have set your heart on, is to get organized. Make sure you have all your paperwork ready to go, including your proof of ID, address, income and bank statements. It also helps to use a whole-of-market mortgage broker such as AWS Private Finance. We know which lenders are likely to pull products before they do so. As our close relationships mean we are often given a head’s up. If you are interested in a mortgage, we can move quickly with your application to ensure you don’t miss out.
Those borrowers with more specialist requirements such as day-rate contractors or those seeking a large mortgage will find their choices are more restricted so advice is more important than ever. Do get in touch for more information.