property interest rates

What’s a good interest rate?

There’s a lot of speculation around right now. Up, down, left, right… no one really knows where interest rates are going, especially after the BREXIT. No matter what happens, you can feel reassured knowing that this is the way to make sure that you always have the best interest rate around.

Put simply, the very lowest interest rate you can get will be the best for you. There are a few other considerations, but generally the lower the better.

The interest rates you see floating around are decided by the mortgage lenders and generally relate to:

  1. The specific mortgage you are borrowing.
  2. The amount of deposit you have click here to read about deposits.
  3. The mortgage category you fall under. This could be: first time buyer, home mover, re-mortgaging, buy to let, commercial, secured loan… the list goes on.
  4. The type of interest rate. Whether it’s fixed, tracker, discount, offset and the not so common, capped.
  5. And finally, either the Bank of England base rate and/or the LIBOR rate. (I’ll be writing an article to explain these rates and changes soon. If you can’t wait until then, just send me a message on twitter or facebook.)

One consideration you’ll need to think about is the fees associated with the interest rate you apply for. As a general rule of thumb, the lowest rates come with higher fees. So if you have a smaller mortgage it may not be worth having the cheapest rate if it is going to cost you £1,000. Instead you could have a marginally higher rate that doesn’t have an arrangement fee attached.

Other fees to consider are the cost of the survey and solicitors fees (if you’re remortgaging these will apply, but they can be free in some circumstances, depending on the lender. My job, when recommending an interest rate, is to factor in the fees associated and discuss all your options. This means you can see for yourself what is available, and of course I will give you my advice as well.

As interest rates are changing daily with various lenders, this information changes all the time as the market fluctuates. Especially following the BREXIT #leave decision on Friday, there is a lot of uncertainty surrounding the financial sector. It’s too soon to say what will happen to house prices and interest rates as we try to keep inflation stable.

interest rate number blueKNOWLEDGE BOMB: Self-employed or business owner? – you get the same interest rate as everybody else, you just have to jump through more hoops, do a little dance and stand on your head to get it. You’re going to face struggles to prove your income and more: yes, that is a stressful as it sounds… but trust me, when you’ve moved into your forever home, it’ll be on the same rates as everyone else.

When it comes to sourcing and giving advice on the best interest rate for clients, I find this is very dependent on their future plans, adversity to risk and unique financial situation.

So let me share some specifics which are only accurate as of today (26/06/2016) and will give you a breakdown of how things work and what is on offer for you and also the benefits of using an independent broker.

So taking a property purchase of £250,000. Using a fixed rate (for comparative purposes) what are you likely to get?

The number of product available grows with the amount of deposit you have. This means more lenders are available to you because the extra deposit adds another layer of security.

The lowest rates available today are:

Deposit Size %Interest RateInterest Rate TypePeriod (years)Products Available
5%2.79%Fixed389
10%2.29%Fixed2241
15%1.78%Fixed2455
20%1.63%Fixed2647
25%1.58%Fixed2900
40%1.38%Fixed21260

As you can clearly see, the larger the deposit, the lower the interest rate. This means you’re paying back less each month for your mortgage repayments. Even though the rates shown here may change, the pattern *should* stay the same.

Talk to me!

Send me a message, or better yet call me, if you want to find out the best rates and deals at the present time. It’s simple. Tell me a little bit about you (what you want to achieve, how much you can afford, if you’re self-employed, business owner etc.) and I will tell you what the best options for you are.

You can find me here on facebook, and here on twitter.

Don’t be a stranger: I look forward to answering all your queries and questions.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

THE ACTUAL RATE AVAILABLE WILL DEPEND UPON YOUR CIRCUMSTANCES. PLEASE ASK FOR A PERSONALISED ILLUSTRATION.

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