The mortgage rate war among lenders has resulted in fixed rates falling to record lows, which is good news for borrowers!

It is now possible to fix rates for up to ten years at less than 3% or for two years at only 1.19%. The latest cuts have seen lenders, such as First Direct, allow customers to fix a 2.89% rate for a decade, and similar offers have been made by other lenders, such as Barclays and HSBC.

For first-time buyers, TSB has introduced a new fee-free deal enabling customers with only a 5% deposit to lock in to a ten-year fixed rate of 5.69%. Although this rate is not headline-grabbing, the long-term security offered to first-time buyers is very appealing.

The Council of Mortgage Lenders has suggested that rates will continue to stay low and mortgage brokers have predicted even better offers, with five-year deals below 2% and two-year rates below 1%.

All of this is good for borrowers, who can take advantage of lenders battling to offer the most competitive deals. Given that the mortgage rate war is set to continue, now seems to be the right time to borrow.

If you are looking to buy a property or re-mortgage, then Battrick Clark Solicitors’ Property Department can offer you a professional and friendly legal service. For more information, please click on the following link to contact us

Oliver Glyn-Jones – Trainee Solicitor