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Are these some of the lowest fixed rate mortgage deals we’ve ever seen?

Hand with wooden blocks showing low mortgage rates

As the economy begins to recover post-pandemic, UK lenders are making moves to attract customers back.  As a result, homebuyers and remortgagers can now take advantage of some of the lowest fixed rate deals that we’ve ever seen in the mortgage market. 

Where can I find the lowest fixed rate mortgage deals?

There’s a great deal of competition from the UK lending giants at the moment.  Halifax has announced their lowest ever mortgage rate over two years, fixed at 0.83%.  The deal is based on 60% LTV and comes with a fee of £1,499.  For a lower fee of £999, borrowers can opt for a rate of 0.87%. 

Elsewhere, Nationwide have launched their lowest ever two-year fixed deal at 0.87% with a £1,499 fee for movers or remortgagers who have a 40% deposit.   For borrowers with a slightly smaller deposit of 35%, Yorkshire Building Society can offer a two year fixed rate mortgage for 0.95% or a slightly higher rate of 0.97% for those with a 25% deposit.    Both deals come with a £1,495 fee and are available to those who are remortgaging or buying a new home. 

Looking for a longer fix?

Halifax once again comes in as the best of the sub 1% deals.  Their five year fixed rate comes in at 0.98% with a £1,499 fee.  The deal is only available to those who are remortgaging.   Nationwide is not too far behind with a five year fix of 0.99%, also with a £1,499 fee. 

Why are fixed rate mortgage deals so low at the moment?

Lenders are keen to attract customers through their doors in the post-pandemic world.  In the midst of coronavirus, many homeowners and buyers put their plans on hold, keeping a strict eye on finances. However the market is slowly becoming more buoyant as people flock back to the property market.  With the Bank of England base rate remaining low at just 0.1%, lenders can afford to offer some of the most competitive deals around. 

How do I qualify for these cheap fixed rate deals?

Unfortunately not everyone will qualify for these cheap deals with many of the low rates available for remortgage only.  Even those available for purchases typically come with an LTV of 60% meaning that many first-time buyers may need to look at other deals.  

Typically, to qualify for such low rate deals, you will need to have an excellent credit history, as lenders will check your report.  Even a very minor slip could halt your chances of these cheap deals, so you’ll need to ensure that everything is in order before you apply. 

I’m already locked into a fixed rate, can I still apply?

When applying for a mortgage, the majority of lenders will typically lock in a rate for you for 3-6 months.  If you are coming to the end of your deal within this timeframe, then it is certainly worth making enquiries and seeing if you can lock in one of these new low rates for when your current deal ends. 

If you are locked in for longer then it may be more difficult.  Releasing yourself from your current deal can come with hefty penalty fees.  However if the overall savings over the term of the mortgage negate the fees then it may still be worth switching.  

How do I access these low fixed rate mortgage deals?

Whilst some low rate deals can be found on the high street, many of the low cheapest deals are only available through mortgage brokers. 

Whole of market mortgage brokers can search hundreds of products to find you the best deal and often have access to exclusive deals that aren’t available directly.  This takes away a lot of the leg work from you, making the process much simpler and less stressful.

To speak with an independent broker, contact So Smart Money today.

The above post does not constitute advice – financial, legal or otherwise. The information within this article is the author’s own opinion and do not necessarily reflect the views of SO Media or So Smart Money.


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