At Roots Mortgages, we love it when we can be the bearers of good news. Sometimes, the mortgage industry and the news doesn’t really give us the chance to do this. But when it does come along, we can’t wait to deliver it.
So without further ado, mortgage rates have fallen for the third month running!
This means that if you are a contractor or freelancer on the hunt for that perfect mortgage, you could save a pretty penny by moving while the rates are as they are.
They say make hay while the sun shines, and from the perspective of borrowers, the sun is beaming at present.
What’s going on with mortgage rates?
According to the latest Moneyfacts UK Mortgage Trends Treasury Report, average mortgage rates for two-year fixed mortgages and five-year fixed mortgages have both fallen for the third month in succession.
The fall in the last month was the biggest drop in a single month since May last year.
According to the stats, the current average rate for a two-year fixed mortgage is 2.38%. This is a drop of around 0.14%.
Five-year fixed mortgages are currently averaging out at around 2.63%. This is a drop of 0.12% on the previous month.
The evidence suggests that mortgages with higher LTV percentages, such as 95% LTV and 90% LTV mortgages, saw the biggest rate reductions.
The report also showed that there are now more mortgages on the market with rates of less than 1%.
What should we make of these trends?
The drop in rates should certainly be seen as a positive if you are looking to dip your toe into the mortgage market any time soon. This kind of trend gives you a better chance of securing a mortgage that is to your liking and affordable over time.
If you are particularly keen to get on the market but have a limited budget for a deposit, then the rate reduction for higher LTV mortgages is particularly welcome.
If you are in a slightly stronger position financially, then knowing there are more mortgages with a rate below the 1% mark should be a motivator to shop around and find that ideal mortgage for you.
Is now the time to act?
Depending on your circumstances and finances, if you have everything in order then taking advantage of a mortgage with a lower rate is naturally advantageous.
This news also comes on the back of other positive news for prospective mortgage applicants who work on a self-employed basis.
We recently reported on how a new mortgage for self-employed workers has hit the market, while other lenders have changed their policy for SEISS grant applicants.
While it would be naive to say that things are perfect for contractors and freelancers when it comes to mortgages at present, these kinds of statistics and stories indicate that there are opportunities to secure the kind of deal you want if you look in the right place.
Getting mortgage advice is always advisable, so if you feel you could benefit from some guidance, don’t hesitate to seek it out.
