Mortgage rates reach record low

In recent months, some of the best mortgage rates I’ve ever seen have come onto the market.

There’s no doubt that the Funding for Lending Scheme, the joint initiative of the Government and Bank of England to get lenders lending again, is working.

Mortgage rates have come down quite dramatically in the second half of the year.

And while transaction levels are still low in historical terms, new data released today by the Council of Mortgage Lenders showed that the number of mortgages issued rose again in November.

I don’t want to tempt fate but we’re definitely starting to see some momentum in the mortgage market.

Lowest mortgage rates

Admittedly, it’s the people with the biggest deposits and a decent chunk of equity who get the lowest mortgage rates, but even at higher loan-to-values, prices are getting more competitive.

The key issue now, which I mentioned in the Guardian today, is one of volume.

For the property market to fully recover, we need to see more loans for people with smaller deposits. The only way this will happen is if lenders become more flexible with their criteria.

That’s not to say that we want a return to the reckless days leading up to the 2007 crash, but we do need lenders to become less black and white.

The fact of the matter is that many perfectly viable borrowers are getting rejected when they should be waved through.

Economic performance key

Looking forward into 2013, I expect mortgage volumes overall to continue to grow although the extent of this growth will depend on how both the UK economy, and of course Europe’s, perform.

People need to feel confident before they commit to buying property or moving home, and even though we’re technically out of recession, many households remain nervous.

What’s not in doubt is that if you are looking to purchase or remortgage at present, you could be in luck. I’ve been a broker for many years and am currently able to recommend some of the lowest mortgage rates I’ve seen.

Get in touch today to see what rates you could enjoy.