by Mark Johnston
With the Bank of England base rate looking to stay at it’s historically low of 0.5% for the foreseeable future, 2012 looks set to offer at least some new lending opportunities as new and more accessible products come on the market.
Many banks and building societies have therefore promised to increase the number of cheap deals available to borrowers.
The largest cut is t its 5 year fixed rate deal at 75% loan to value (LTV) which has been reduced by 1.01% to 3.38% from 4.39%. This deal comes with a £995 fee.
David Hollingworth, mortgage expert at London and Country, said “there is a mixed bag of news at the moment and the 5 year fixed rate is reasonable from the Post Office”.
This is just one of ten new fixed rate mortgages that the Post Office claims are ‘best buy’ contenders.
As well as changes to its 5 year fix, they also offer new 65% loan to value (LTV) 2 and 3 year fixed rates which also come with £995 fees. These all have the lowest fixed rates they have ever offered.
It seems that 5 year fixed mortgage rates especially have hit a new record low. The Chelsea building society has launched a new deal at just 3.19%.
This deal is available for home buyers looking to borrow up to 70% of the property’s value. However, even though the headline rate is the lowest ever offered it does come with a large fee of £1,495.
Chelsea building society, part of the Yorkshire building society group, says that it is ‘continuing in its aim to offer borrowers the most competitive mortgage deals’.
First Direct are also offering great deals at the moment, they offer a rate of 3.28% with a maximum loan to value (LTV) of 70%, but this does come with an enormous fee of £1,999.
Those who want to budget their costs in the short term could consider the Co-Operative bank who have a 5 year fixed rate at 3.39% at 75% loan to value (LTV) with a reasonable fee of £990.
The Norwich & Peterborough (N&P) building society launched a 10 year 3.99% fixed rate deal on up to 75% loan to value (LTV) ratio with a fee of just £295 (one of the lowest fees around) on the 25th January 2012.
However the building society withdrew this deal less than 2 weeks after it was launched. The building society stated that this was due to “unprecedented demand for the deal and as a result its withdrawal from the market was necessary in order to maintain customer service levels”.
Experts believe that these new deals could help to provide the lifeline would be home buyers who are stuck in expensive rental properties need.
Although on the flip side borrowers should now know that the super low rates continue to only be available to those lucky enough to have a sizeable chunk of equity or a big deposit saved up.
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