Rates continue to be relatively low particularly for those with a sizeable deposit. Obtaining finance should therefore not be an issue if you have a deposit or existing equity of between 15 and 40 per cent, together with a clean credit history. There remains a lack of funding for those with a smaller deposit, which is unnerving for first-time buyers trying to get a foot on the property ladder. The deals which are available at a higher loan-to-value (LTV) tend to carry a premium on the rate.
For high-net-worth individuals, private banks continue to be an attractive option. Often offering better terms than the high street lenders, private banks appeal in particular to those with complicated income streams, who rely on bonuses and share portfolios, or have considerable assets in property and investments.
With lenders’ standard variable rates or ‘go to’ deals proving enticing while interest rates are low, a number of borrowers are staying put. It is inevitable however that Base Rate will increase at some point in the future, as it cannot stay at 0.5 per cent forever. For those who prefer the security of a fixed rate, it may be worth securing one before rates starts to rise again.
It is important to work out the total cost of a mortgage so you can compare it with what else is on the market on a like-for-like basis. SPF can do all the sums for you and help you choose the most suitable deal for your circumstances.