Mortgage lenders have been offering their lowest rates since the Bank of England reduced the base rate to 0.25% in August
As a result, September has seen the strongest mortgage lending since 2007. The Council of Mortgage Lenders (CML) senior economist Mohammed Jamei, commented:
‘Remortgage activity looks set to grow, helped by attractively priced mortgage deals encouraging borrowers to refinance.’
David Blake of Which? Mortgage Advisers said:
‘It has never been a better time to take out a mortgage. Rates are low, buyers can buy with a 5% deposit and lenders have an appetite to lend.
‘Lenders are becoming more innovative with their lending terms, and we are seeing lots of lenders looking towards more bespoke lending, such as to contract workers, people living and working abroad (ex pats) and people looking to buy unusual properties.’
But it’s also important to remember that interest rates can fluctuate, so you will need to think about the cost of your mortgage both now and in the long term. If interest rates were to rise, will you still be able to meet the repayments? Ask yourself this question before committing to a mortgage.’