The continued price war amongst lenders has seen mortgage rates hit their lowest since records began back in 1995.
Currently there is a big demand for properties and as lenders compete with each other to secure the biggest share of the market, rates have plummeted down to an average 1.83% in some cases.
Currently the lowest rate is held by the Post Office, which is offering a two year deal at 1.05%. There is a fear growing that the rates will soon begin to rise and it is expected that later this year the Bank of England will begin to raise the base rate, which has sat at 0.5% for over 70 months.
Some are concerned that the low rates encourage people to take loans of a larger value, which could lead to them struggling to maintain the repayment when rates go up. Whilst the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/Mortgage-Man-3.jpget Review (MMR) saw increased regulation being implemented to ensure lenders were lending responsibly, the Financial Conduct Authority (FCA) has said a recent review has highlighted there is still room for improvement.
Linda Woodall who is the director of supervision at the FCA said:
“A mortgage is a significant undertaking for anyone. It is vital that customers are able to get suitable advice and a positive experience when deciding on their options.”
Having become a qualified adviser who has passed their CeMAP training, you will be able to assess your customer’s needs and provide them with the most suitable best advice.