The price war on mortgage products in 2021, by Matt Stevens
The competition within the mortgage market among lenders has taken interest rates on products to historic lows. This war on mortgage products is a great opportunity for both homebuyers looking for a new mortgage deal, and for those looking to move home. New data shows that average rates are now lower, which means that homeowners are now paying less than when they locked their deals. At the time of writing, one of the lowest rates for a 2 year fix remortgage was 0.74%. On average, the trend for rates on mortgage products continues its decline, with 2, 3, 5, and 10-year fixed rates mortgages falling as follows:
- The lowest rate for a 2-year fixed remortgage fell to 2.45% for 95% LTV (or 95% mortgage). At 90% LTV, the rate dropped to1.69% and, at 85% LTV, the rate went down to 1.34%%.
- For a 3-year fixed mortgage, again, the most notable changes occurred for 95% and 90% mortgages, where the average rate for each decreased.
- The pattern is repeated also in the case of 5-year fixed-rate mortgages. For an LTV of 95% the rates could be as low as 2.89%, at 90% LTV 2.39%%, and at 85% LTV the rate can be as low as 1.91%.
- The 10-year fixed rate had changes too up to 75% LTV, with one lender offering a 1.95% fixed rate.