Mortgage experts believe there has never been a better time for borrowers to lock into rock bottom home loan rates. 

In recent weeks, a flurry of new fixed-rate loan deals have been launched at less than 1 per cent from the likes of TSB and Platform Home Loans. This has prompted one expert, Peter Gettins of L&C Mortgages, to describe the market as ‘incredibly competitive’. 

He adds: ‘There are some fantastic rates out there and I don’t think any homeowner would be kicking themselves in six months’ time by taking advantage of them now.’ 

Savings: A flurry of new fixed-rate loan deals have been launched at less than 1 per cent

Savings: A flurry of new fixed-rate loan deals have been launched at less than 1 per cent

Savings: A flurry of new fixed-rate loan deals have been launched at less than 1 per cent

It’s a view shared by Ray Boulger at broker John Charcol. He says: ‘It now appears unlikely that the Bank of England will introduce negative interest rates. With the base rate at 0.1 per cent, the question is not whether rates are likely to rise or fall – but when they will increase, how quickly and by how much. So a fixed-rate loan looks the best option.’ 

Nationwide, the country’s largest building society, is the latest lender to offer a loan deal – albeit only for existing homeowners – at less than 1 per cent. Its two-year fixed-rate loan at 0.99 per cent, launched on Wednesday, is available to those with at least 40 per cent equity in their homes. It comes with an arrangement fee of £1,499. 

Platform’s equivalent two-year fixed-rate loan is priced at 0.95 per cent, though borrowers with loans of less than £250,000 would be better off opting for Platform’s two-year 1.05 per cent fixed-rate loan, because the arrangement fee is £500 lower at £999. 

Though two-year fixed rates are cheaper than those on five or 10- year fixed-rate loans, experts believe most borrowers would be best opting for a five-year fix. 

Boulger says: ‘The best five-year fixed rates are only slightly higher than the best two-year deals. By fixing for a longer period, a borrower not only secures a low interest rate for an extended period of time, but they avoid the cost of switching to another deal in two and four years’ time.’ 

For homeowners with at least 40 per cent equity in their homes, NatWest, Platform, TSB and Santander all offer five-year fixed rate loans at less than 1.2 per cent.

THIS IS MONEY PODCAST

This post first appeared on Dailymail.co.uk

You May Also Like

Coca-Cola EP teams up with conglomerate for $1.8bn takeover

Coca-Cola Europacific Partners has struck an agreement to jointly acquire a soft…

Amazon creating thousands of jobs and investing in skills training in UK

Amazon is creating thousands of jobs and investing in skills training in…

Mortgage holidays extended until July 2021 for households struggling due to coronavirus crisis

HOMEOWNERS who are struggling to pay their mortgage because of the coronavirus…

‘People are under pressure’: the shop staff paying for strangers’ groceries or turning a blind eye to theft

As prices rocket, supermarket workers tell of customers unable to pay at…