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Residential fixed rate re-mortgages starting at 0.99%

Tuesday 1 June, 2021

In this article Vishal Gulrajani, Financial Adviser in Cheshunt, Hertfordshire and London reviews, the new mortgage products being offered by mortgage lenders. If you need mortgage advice, call our mortgage advisers today on 01707 872000.

Wanting to buy a property? – call our broking team for mortgage advice

We recommend anyone looking to move house contacts the Thomas Oliver mortgage broking team before they look for a property, so we can review your income and expenditure and work out how much mortgage lenders will be prepared to lend you. 

Mortgage lenders return to normal

During the start of the year and following on from the end of 2020 I have been writing about mortgage lenders returning back to normal, albeit very slowly. We are seeing this more often with the introduction of 5% mortgages, and lenders are now willing to accept variable income, such as overtime and commission. 

Self-employed able to get mortgages again

Mortgages are also being given out more freely to the self-employed. I won’t go as far as to say we are back to normal but with things getting as close as they can back to pre-pandemic levels in terms of finance, you may say we are at a new normal. 

Residential fixed rate re-mortgages at 0.99%

The biggest clue that indicates whether mortgage lenders feel more comfortable and are happy to lend like they used to is determined by the interest rates offered on different mortgage products. We have nothing but good news on this front with residential fixed rates starting at 0.99% for a re-mortgage and 1.04% for purchases. This indicates that mortgage lenders once again have so much confidence in the market they are prepared to make little to no profit margin. This is a massive win for the consumer and when you compound this with the stamp duty benefits currently on offer it is no surprise, we are seeing more house purchases and house transactions than ever before, even with a global pandemic!

Buy to let mortgage rates start at 1.19%

Now it is not just residential mortgage rates which have put us in confident mood but buy to let mortgage rates also start at 1.19%, which is incredible considering they are usually at least 0.5% - 1% higher than residential rates. Again, this is another massive win for the average consumer and money facts latest research shows that landlords searching for a deal will be very pleased to see that the overall two and five-year average fixed rates for all loan to values has dropped to the lowest levels since the start of this year. Once more this seems to show an appetite for business from lenders to cater to borrowers who are keen to invest. Indeed, we have seen rate reductions of as much as 0.90% from TSB, while Virgin Money cut up to 1.06% on a selection of its products this month.

Mortgage lenders return back to some form of normality

Overall, we have seen mortgage lenders returning back to some form of normality with lower rate deposit mortgages, and leniency in mortgage criteria compared to this time last year for the self-employed and variable income consumers. For all the suffering the finance sector and mortgage market has experienced during this pandemic, it does finally seem we are nearly on the other side and into a better world, and many home buyers can celebrate with a reduction in mortgage rates for a variety of products.

In Summary

If you are looking to move house and take advantage of the stamp duty holiday, please contact our mortgage brokers. We work with anyone purchasing a new home, first time buyers, buy to let investors and clients wanting to re-mortgage. There is a ‘new normal’ in the mortgage market and many new mortgage products are appearing in the market. For more information and to discuss your personal mortgage circumstances call our mortgage broking team on 01707 872000. We will provide personalised mortgage advice and recommend the best mortgage product for your circumstances.

Your property may be repossessed if you do not keep up repayments on your mortgage. 

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