Good news for borrowers as Mortgages rates hit 2018 low
Good news for borrowers, as rates are falling, a show-stopping shared ownership deal and lenders take account of delays in buying a new build – all in this fortnight’s mortgage update.
Rates continue to tumble
There’s good news for borrowers who are coming to the end of their current mortgage deal as tracker rates continue to fall. According to the latest Moneyfacts UK Mortgage Trends Treasury Report, the average two-year tracker rate has fallen for the third consecutive month, and now stands at 1.92% – the lowest it’s been since fore the base rate rise last November.
Charlotte Nelson, finance expert at Moneyfacts, says:
“Since competition in the fixed rate market has reached new heights, providers have started considering the variable rate sector as a new avenue in which to attract borrowers. The average two-year tracker rate has fallen yet again, decreasing by 0.08% since March and marking a drop of 0.02% on a monthly basis. This is the third consecutive monthly reduction and the lowest average two-year tracker rate since the base rate rise in November 2017.”
Leeds offers 0% shared ownership mortgage
It’s the only mortgage in the UK with an interest rate of 0% (albeit for the first three months only) and it’s now available on a shared ownership basis! Yes, Leeds Building Society has announced an extension of its five-year fixed rate Welcome mortgage which comes with no fee, three months at 0% interest, reverting to 5.13%, up to 95% borrower share.
Jaedon Green, Leeds’ director of product and distribution, says:
“Leeds Building Society has extensive experience and expertise, working with the affordable housing sector and is a leading provider of Shared Ownership mortgages up to 95% borrower share. Welcome is a natural extension of our Shared Ownership proposition and it helps ease the transition into home ownership. Borrowers continue to pay the capital but Welcome provides valuable breathing space with an interest for the first three months.”
Less stress for new build buyers
Skipton Building Society announced this week it was extending the term for new build mortgage offers from now in response to feedback. The lender is extending the length of validity on its offers to 9 months, with the ability to request a three month extension if the build completes in that time. The previous limit was six months with a six month extension period, giving customers more time upfront to take account of delays. We know from our members here at HomeOwners Alliance that when buying a new build delays are very common
If you’re using a mortgage broker, they’ll be able to ask Skipton for the extension on your behalf.
Kindly shared by HomeOwners Alliance