Rates have continued to remain at a record low, but some experts maintain that mortgage competition between lenders could be coming to an end.

https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget leading rates are generally sitting at just over 1%, so logically they cannot really go much lower. Combined with the news that both the Woolwich and HSBC have withdrawn their five-year fixed rates, which were less than 2%, some may say that now is the time to secure a deal if you were looking to buy a house or remortgage to another lender.

As they strive to compete with each other and capture an increased portion of the mortgage market, some lenders are still offering attractive deals. Yorkshire Building Society, for instance, has just released a rate fixed for two years at 1.07%, up to a maximum loan-to-value (LTV) of 65%, making it one of the most affordable two-year fixed rates in the UK. Meanwhile, London & Country Mortgages’ David Hollingworth has commented that some lenders could even drop rates below 1%.

However, Hollingworth was also keen to state that these record lows will not last forever, adding:

“The tiny margins that lenders are now using to undercut the competition suggest the wriggle room for further rate cuts is becoming limited.”

When you work within the mortgage industry, having qualified from your CeMAP training will put you in a great position to recommend the most appropriate mortgage solutions to clients, with the currently low rates most likely factoring into your assessments.

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