Mortgage Rates Fall To Record Lows

Tracker deals have proven to be a homeowner’s personal best friend during the recession enabling them to invest in property at affordable monthly repayments. However, even though we are now officially out of the recession, lenders are still striving to keep their mortgage rates low by introducing record low rates of just 3.63% in January.

According to the Bank of England, the UK mortgage market has finally bottomed out falling by an impressive 0.29% in January from their December figures (on their 75% LTV deals).

Even fixed rate mortgage arrangements are now at a 6 year all time record low after dropping from 6.35% in June 2008 to just 3.97% last month.

Looking at these figures it is undeniable that these rates present great opportunities for property investors who have got the cash to invest. Yet there is further hope above the horizon…

Continuing in their report, the Bank of England have reported a 26% increase in the number of 90% LTV deals available – an increase which has got many property advisors concerned that should property prices go through another downturn, homeowners who have invested in these deals could end up defaulting.

Hopefully this won’t happen and the economy will keep to the Nationwide’s predictions of rising by 20% in the next 3 years. As a nation we will just have to wait and see…

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More About the Author

Fraser Stirling, Property Mentor Delegate

No matter what the media wants you to believe, property is still the only investment route where you can benefit from an asset that will NEVER go into zero value. Even when I was university I admired properties ability to withstand the economic elements and stay strong, even when other investment forms faltered or failed. X years on, I am now the proud owner of multiple property investments - one of which earns a passive income of £4,680 and my property portfolio is still expanding. Read more