Latest data has revealed that the current average standard variable rate (SVR) mortgage for July 2020 is 4.46%. This would be a rate jump of almost 2% compared to the initial average 2-year fixed rate deal they may have taken out in July 2018 (2.52%).
July 2020 saw the average 2-year fixed rate reduce to a historic low of 1.99%, meaning that those who are on their current SVR could be paying 2.47% more than if they were to have switched to a new 2-year fixed deal at the start of this month. Those in a position to consider a new mortgage deal may wish to move quickly, as average rates have begun to rise.
Following the significant fixed rate war in 2019 & ever-tightening margins for mortgages, it was unclear how much impact Covid19 & subsequent Bank of England base rate cuts (still at a historic low of 0.10%) would have on fixed mortgage deals, so it’s great news for borrowers that approximately 3 months on from the second cut to base rate – in line with when we would traditionally expect to see reductions filtering down to products – that average mortgage rates, such as the two-year fixed product, hit its record low of 1.99%.
This seems to demonstrate that despite the current climate, mortgage lenders are keen to lend at competitive levels where possible.
You can read the full article here: https://www.mortgageintroducer.com/borrowers-maturing-mortgages-rate-jump-2/
For help or advice in getting your next mortgage deal, please give The Mortgage Bureau a call.
You can find an office nearest to you here: https://www.themortgagebureau.co.uk/our-locations/
The post Borrowers with maturing mortgages could see rate jump of nearly 2% appeared first on The Mortgage Bureau.
https://www.themortgagebureau.co.uk/remortgage/borrowers-with-maturing-mortgages-could-see-rate-jump-of-nearly-2/
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