Now could be the best time in decades to take on a mortgage, according to the independent brokers Mortgage Advice Bureau.
It said numerous new deals have arrived since the beginning of the new year, with lenders offering borrowers even lower rates and cheaper fees – with some offering 10-year mortgages for as little as 2.89 per cent – the lowest on record for that period of time.
Falling oil prices have also acted on the market, with many analysts forecasting the Bank of England will now hold off on a widely speculated planned increase next month in a bid to stave off any possibility of the economy taking a nosedive.
All in all, it’s great news for those wanting to get onto the property ladder and also those looking to remortgage.
According to the Mortgage Advice Bureau: “Lenders are looking to lend more money this year and are cutting their prices to attract more customers and the fact that the Monetary Policy Committee kept the base rate at 0.5 per cent for the 71st consecutive time is allowing lenders to do this.
“With two-year rates expected to fall below one percent, mortgage brokers are expecting even cheaper deals to come.
“Falling inflation driven by the slump in oil prices has reduced the need for a rise in the bank rate, with many economists predicting that there will not be a rate rise this year.”
It added: “For those who still think of mortgages as synonymous with a 25-year repayment period, times really are changing. A combination of longer working lives and affordability pressures mean that there has been a significant continuous shift on the part of households to longer-term products.”