For first time homebuyers in the United Kingdom, rates continue to look great. Recently, competition between lenders has caused the rates on two-year mortgages to decrease by 0.04% across the market as a whole. Specifically, in the range of 5-15% deposits (typical of first-time buyers), the rate has dropped a whopping .54%. This good fortune, however, has not extended to more experienced property owners, where the mortgage rates have increased. This lending behavior signals a concerted effort by lenders to attract new buyers.
Key Takeaways:
- In August of 2018, the Bank of England’s base rate rose from 0.5% to 0.75%.
- In the UK, two year fixed rate deals with a charge attached have seen the charged sum drop significantly between August of 2018 and this February.
- The rate falls are highly welcome need for first time prospective property buyers, aiming to get a foot in the door.
“The rates which mortgage lenders are offering on two-year fixed deals have tumbled since last August – driven by intense competition to woo first-time buyers, analysis has found.”