Mortgage Rates London

They say that every cloud has a silver lining, and when it comes to the housing market, the recent recession has meant that mortgage rates in London have dropped, as the BBR (Bank Base Rate) has seen an all time low. Not only is this just what the economy needs to get a boost, it is what potential homeowners need to be able to get on the property ladder.

First Time Buyer Rates

For those of you looking to purchase your first house, here’s some good news for you – there is an increasing amount mortgage rates in London of 85-95% available again. The recession seems to be in remission and lenders are offering a wider variety of packages to suit all buyers.

We feel that it will be a long time before we see 100-110% mortgages surface again as these packages have left a generation of buyers in negative equity and have resulted in large amounts of bad debt, and ultimately played a part in the recent recession due to the large amount of monies that are owed.

The Post Office is offering first time buyers excellent rates, and deals that I have enquired about seem to be some of the best on the market.

Lifetime Tracker Mortgages

For those of you with a Minimum deposit of 20% or 80% LTV you can take out a base rate tracker of BBR + 3.09% with a £599 arrangement fee. This was +2.99% but they’ve added 0.10% since the beginning of March. You can also take out a fees assisted mortgage for an additional 0.20%.

The rates improve the larger your deposit. With a 40% deposit (60% LTV) rates of BBR + 2.49% + £599 arrangement although with 40% deposits you could probably find a better deal. Those with a smaller deposit would benefit the most from this deal. These are also available for those looking to remortgage in London, not just new buyers.

A good example of this would be First Direct, currently offering a lifetime tracker of the BBR + 2.39% for 65% LTV + £499 arrangement beating the Post Office deal quite significantly.

Please note that you should always speak to a mortgage advisor as there are certain deals available in different regions and the mortgage rates in London can vary to those in the North, or Ireland.

10% Deposit Mortgages

As the price of property in London is more in demand, and therefore more expensive, you might find it hard to muster up the deposit required to hit the better rates that come with higher LTV mortgages. Not to worry though, there are still some packages available for those wanting to get their foot onto the elusive rungs of the property ladder.

HSBC are offering a 4.99% long term deal with no booking fees which will help those with a tight budget; this comes with a 5.1% overall APR. If you do however have enough to pay the booking fees they offer a 5.99% 2 year fix with a £599 booking fee resulting in a 4.5% APR.

Fixed Mortgages London

Of course there are some people that like to play it safe, and with the currently economic climate being what it is you can’t really blame them. Fixed rate mortgages are a safe gambit as you know for the next 2-5, and in some cases 10 years you will be paying a fixed amount on your mortgage and nothing else.

That’s perfectly acceptable especially since the only place the current BBR is going is up, so people are locking themselves in to hopefully get past the next few inevitably turbulent years.

First Direct are currently offering 3.29% 2 year fixed, then 3.69%, SVR for the remainder of the term but they will also hit you with a £499 arrangement fee and a £499 booking fee; but you might get away with the arrangement fee if you are remortgaging.

If you shop around you will be able to find up to 10 year mortgages at a reasonable 5.5% APR although it comes with a £1200 arrangement fee and is a minimum 60% LTV, you know exactly how much you will be paying for the next ten years and in cities like London, stability is always welcome.

If you would like to receive a quote or calculate how much mortgage rates in London will be please see our free mortgage calculator using the navigation bar above or contact us directly.