Positive news for borrowers as best rates and incentives arrive on mortgage market
It has undoubtedly been a tempestuous time for most industries in recent months, including the property market. However, as lockdown restrictions start to lift and some normality is resumed, positive news is emerging in the housing industry.
Buyers can be encouraged by the raft of enticing rates and incentives arriving on the market from lenders.
Since the beginning of March, mortgage rates have been on a downward trajectory. Data from Moneyfacts reveals that fixed mortgage rates are witnessing the biggest reductions. As well as favourable rates for borrowers, buyers can take advantage from a number of incentives, including fee-free deals.
With low mortgage rates and other incentives, the current landscape is looking increasing attractive for house buyers, property owners looking to re-mortgage and investors.
Since the Covid-19 pandemic dug in its heels in early 2020, the Bank of England has reduced its base rate twice. The base rate now stands at a record low of 0.1%. The low base rate has inevitably fed into the mortgage landscape, making it a cheap time to borrow money.
Data shows that in March 2020, the average rate for a fixed-rate mortgage was 2.89%. As of June 2020, the figure was 2.30%. A similar pattern can be found in standard variable rates, which fell from 4.9% to 4.48% during the same period.
Free legal fees
Another incentive being increasingly offered by lenders is the waiving of legal fees. To entice buyers, some lenders are waiving or refunding legal fees with certain products. This can result in homebuyers making a significant saving with the purchasing of a property.
Stamp duty holiday
In what was one of the most notable features of Chancellor Rishi Sunak’s announcement of measures designed to give the economy a boost, was the stamp duty holiday. First-time buyers, second-time buyers and buy-to-let investors will benefit from a temporary stamp duty cut, which could potentially save them thousands of pounds.
With mortgage rates historically low and a series of incentives designed to kick start the property market once more, now could be a great time to swoop in on the perfect property for a great price.
If you’re thinking about purchasing a property in the current favourable climate for borrowers and buyers, check out the properties listed for our next property auction in London.