Mortgage borrowers in the UK have enjoyed historically low rates for over a decade now. However, all eyes are now on the Bank of England, ahead of May’s meeting of the Bank’s Monetary Policy Committee. Many are expecting a 0.25% rise next month; Governor Mark Carney has hinted at rises, with one forecasting body suggesting that rates will rise twice this year, despite a relatively sluggish economy.
This is understandably concerning for clients who have or are looking to take out a large mortgage; on high-value loans, even a minimal rate rise could equate to a significant cost increase. Many Enness clients are therefore enquiring about the best route forward for their property finance, with many considering long-term fixed rates to protect themselves from future rises.
Fortunately, there are some excellent options available. Our product of the week is a 5-year fixed rate available for mortgages up to £2million, at a rate of 1.94%. Sub 2% borrowing is an excellent rate for loans of this size. A 5-year fixed rate will also give you the security of knowing exactly what your monthly repayments will be for years to come, which can be very handy for your financial planning.
This product can be used by a range of clients, including first-time buyers, those looking to purchase a new home, and those seeking to remortgage their property. Available for mortgages up to 75% loan to value (LTV), this could be a great remortgage option for clients who have paid down some of their mortgage and are now looking for a slightly lower LTV bracket to achieve a better rate.
- 5-year fixed rate
- Available up to 75% LTV
- Mortgages up to £2million
A 5-year fixed rate product isn’t suitable for all clients, but if you feel confident you will be living in the property for the foreseeable future, it’s an option worth considering. Of course, the best option for you will always depend on your individual circumstances—so if you’d like an individual consultation, I would be happy to talk through your options.