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Mortgage rates are at an all time low
Mortgage rates are at an all time low
Banks and building societies are now cutting their interest rates and offering the lowest rates than have been available for some time.
Maidenhead,
Berkshire,
United Kingdom
(sardnews.org)
26/02/2013
Banks and building societies are now cutting their interest rates and offering the lowest rates than have been available for some time. In past months lenders have refused to offer cheap deals but this is no longer the case.
Moneyfacts.co.uk has reported that a two year fixed late loan is now available from 1.99 per cent, the lowest rate since records began.
In addition, HSBC has launched the lowest two year fixed rate buy cutting its 1.99 per cent deal to 1.98 per cent. This is available for those with a 40 per cent deposit but comes with a £1,999 fee which has been cut to £1,499 for those with a HSBC current account.
Richard Alton runs Alton Mortgages, a whole of market broker based in Maidenhead. Established in 2005, customer service is at the heart of what they do, and they recognise that their clients are individuals with very unique requirements. He says:
"It is so nice to be commenting on an article like this when it is good news about lending rates. The Bank of England has held rates so low for so long it is difficult for the public to understand why rates have been so high especially as a couple of the Banks have been bailed out by the tax payers. Then in pay back the banks miss sell products, pay poor rates on savings and then increase their standard variable rates.
"Isn't it great to see a 1.99% fixed rate deal which are being offered by a number of lenders recently? They do come with hefty fees so the lenders are still making plenty of profit on the deals especially as the funding for the mortgages has come from the Funding for Lending scheme underwritten by the Government.
"The Abbey deal followed at the same rate which was a broker led product and we had a significant take up on the deal. The fees were also lower than the HSBC deal making it better value for money.
"Lenders do act like sheep; I have seen this over the years in that lenders are very cautious to be the only lender who has the best rate as they don't want to be flooded with new business. In reality when they do offer a lower rate the other follow which is great news for customers.
"The focus up to now has been borrowers with a 40% deposit, it is also good news that borrowers with smaller deposits are also starting to emerge.
"The key message to customers is that finally there is some competition in certain parts of the mortgage market and this is what has kept the marker competitive pre credit crunch. It is only during the credit crunch that the competition has gone and thus lenders had more power to make less competitive products available and thus make less profit.
"I really don't think we need rates to go any lower than 1.99% when you have a 40% deposit, I think what the market now needs is better products and support for first time buyers and recently we have seen this support and one product in particular is the family mortgage from Barclays and they must be congratulated for this innovative product.
"We can't feel sorry for lenders because even at these low rates they are still making a lot of money as their funding is cheap and they are charging bigger fees upfront to secure these deals. It is great to have Funding for Lending it was the right product at the right time to give the market a lift and one of the better things the Government have done to support the market place."
Notes to Editors
Alton Mortgages is an established whole of market mortgage broker based in Maidenhead, Berkshire. Established in 2005, customer service is at the heart of what we do, and we recognize that our clients are individuals with very unique requirements and do what we can to find low mortgage rates and the best residential mortgage deals. Click here to find why you should use a broker . We work with individuals and families to provide them with an exceptional residential mortgage service with low . Click here to find out more about Alton Mortgages .
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About Alton MortgagesLtd
Alton Mortgages is an established whole of market mortgage broker based in Maidenhead, Berkshire. Established in 2005, customer service is at the heart of what we do, and we recognize that our clients are individuals with very unique requirements.
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