Experts are forecasting cheaper fixed rate deals from lenders, with one 10-year deal already being released.
The Coventry Building Society has launched a 10 year fixed rate product at a rate of 2.39% to those borrowers who have a 50% deposit. Experts explain that as the money markets continue to fall, lenders will issue low rate products. The mortgage being offered by the Coventry Building Society has a fee of £999. The director of distribution at Coventry Building Society, Darin Landon, said:
“The recent fall in swap rates means we have an opportunity to offer market-leading rates to borrowers looking for long term security in these uncertain times.”
Landon added that the mortgage market is currently fast paced, so advised borrowers to act quickly. Andrew Montlake, from mortgage brokers Coreco, stated that the low rates were extraordinary, and that he had never believed that a long term product would offer such a low interest rate.
Borrowers who don’t have a 50% deposit will still be offered an attractive deal by Coventry Building Society, as a 35% deposit will attract rates of 2.49% for 10 years. Borrowers need to remember that early redemption charges will apply on many of these products.
CeMAP qualified mortgage advisers may find themselves advising borrowers about the most suitable product for their circumstances, as the various charges can mean that a product with a low rate may not be the best deal. Fees, survey costs and other additions can make it harder to calculate the true cost of a mortgage.
