It's a good time to think about your mortgage

Simon Gammon, Managing Partner of Knight Frank Finance, shares his thoughts on the mortgage market.

This is only the second time that I have seen five-year fixed rate mortgages so low. Several products are now available below 1.6%.

The mortgage price war looks set to continue into the autumn, with lenders keen to build market share as transactions remain flat.

While high street banks are more competitive on pricing, challenger banks and building societies are offering more generous terms on loan-to-value ratios and additional borrowing.

Meanwhile, private banks are writing mortgages for borrowers with whom they don’t have a wider relationship.

Fixed rates have returned to their best ever levels with 5 year rates looking particularly attractive if your circumstances are appropriate.

Rates on lifetime mortgages, a form of equity release for the over 55s, also dropped below 3% for the first time ever this month.

The background to all of this is global political and economic uncertainty, in the shape of the US-China trade dispute and Brexit, among other issues.

The uncertainty means more people are looking at their finances and fixing their mortgages as current loan terms expire. In many cases, the terms on offer are as good as they have ever been.

Please get in touch with us if you would like to review your borrowing options or have any questions about the mortgage market.