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Mortgages have continued to drop! Despite everything you see in the news…
Finding the best mortgage rates can be tricky and time-consuming, with many comparison websites not allowing you to see the rates available just to brokers.
So, each month we post a new update to give you the know-how and the actual updates on the market and not the scaremongering that the news put out.
Best mortgage rates of the past month
Last month we seen a price war as the lenders were battling each other to get their best mortgage rates as low as they could to attract business back to them.
With emails flying in from all lenders with these headlines:
“Decreasing mortgage rates”
“Huge rate reductions”
“Limited edition mortgage rates”
These were flooding in every single day.
Rates dropped as low as 3.75% on a 5-year fixed rate during February, which many of us leaped at and grabbed with two firm hands before it was swiftly taken away after just 2 days.
This just shows that if you are waiting just even 2 days before making a decision you may miss out on what the best has to offer! So, you better move fast if you are thinking of buying or remortgaging your home.
The best rates vary greatly at different loan-to-values (LTV), so we have put together a table that will allow you to see the best rates available for new purchases and remortgages at each LTV for the most taken-out fixed rates. So, you are not being misled.
LTV (%) | 2Y (%) | 3Y (%) | 5Y (%) |
95 | 4.9 | 4.9 | 4.6 |
90 | 4.5 | 4.5 | 4.3 |
85-65 | 4.14 | 4.14 | 3.96 |
60 | 4.14 | 4.14 | 3.91 |
You will notice that the 85-65% category is the same as the lowest rate available at these LTV was exactly the same.
Keep in mind just because you are getting the lowest rate available does not mean you will be getting the best deal as these lower rates are mostly accessed with higher arrangement fees!
The larger your mortgage, the better these lower rates with higher arrangement fees may be for you, as the rate means more the larger your mortgage is.
Each of the lowest rate observed in March 2023 are lower than previous months of 4.49%, 4.54% and 4.15% respectively. Averaging 0.33% lower than the previous month.
Should I remortgage now?
It depends on what your thoughts are going to be, rates are not as low as they have been prior to further worries from the Bank of England but lenders have been decreasing their rates again. Do not take this for advantage and expect this to be the case forever!
If you are going looking to remortgage, you should leap at these rates and not hesitate over a potential minimal decrease and risk a large increase.
Remortgaging is expected to be looked at again 6 months prior to the expiry of your current rate. This will give you more than enough time to look at your options again and make sure you have time to obtain a great deal for the current time!
Due to current demand, it is taking slightly longer than normal to obtain remortgages so looking early gives you this time to do so.
If you are on a standard variable rate (SVR) contacting a broker immediately could be extremely beneficial! SVR’s can have you on much higher rates than you need them to be on!
So don’t go overpaying for no reason…
If you are locked into a low rate for a number of years, then I wouldn’t be racing to get another rate. You could be losing money through early repayment charges as well as higher monthly payments.
Finding the best deal for you
As previously mentioned, the interest rate isn’t the only thing to consider when looking at a new interest rate. You will have to look at the arrangement fees, terms, and if the lender is the right one for you as well.
If you are wondering if this could benefit you then contact us!
At Actuate, we can compare the best circumstances for you to make sure you end up in the best position when buying or remortgaging your dream home.
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