The Bank of England has maintained the base rate at 0.25%, the ninth time it’s rate-setting committee has voted to leave the rate unchanged since it cut the rate from 0.5% in August last year. The markets and economists are expecting little movement from the Bank on rates this year. While the picture around rates seems static for now, the opposite is true in the mortgage market.
In the last few weeks the deals available in the mortgage market have been changing rapidly. There have been “blink and you miss it” deals – mortgage rates offered for a week or less before they are withdrawn again, and also the launch of the lowest-ever 5-year fixed rate deal from a major bank. These moves are typical of a market where there is stiff competition among lenders to take on new customers. However deals that are only offered for a short period are also a symptom of an avalanche of applications from prospective borrowers, leading to lenders shutting the doors as they process them.
In this type of market, it is important for prospective buyers to be “mortgage-ready”. The significant increase in paperwork needed to secure a home loan these days mean that mortgage brokers can work with borrowers before they even apply for a loan to make sure that they are ahead of the game, potentially putting themselves in a good position to secure the best rates, and take advantage of some of the lowest-rate mortgages which have ever been offered.
Find out if you are “mortgage ready” with our quick check list.