Abbey for Intermediaries announced this week that they have dropped their fixed mortgages by about 1.10% by reducing the amount of fees associated with each of the mortgage products and offering lower mortgage rates in general on the products.  This is just one of the many announcements this week that has seen mortgage terms become more enticing to home buyers that have not yet taken advantage of the rock bottom rates available from some of the top lending agents in the UK as the banks compete against each other for business.

The largest reduction made by Abbey for Intermediaries was on their five year fixed mortgages that are set at an 85% LTV making them an affordable choice for many home owners.  The rate was reduced by a total of .94% with no attached fees to add to the final price.  Also enticing to those who need a bit more help with their deposit is a reduction of .85% on their two year fixed mortgage product that has a low 90% loan to value attached to it to help out first time home buyers who may not have a large savings account.

Managing director for Abbey Intermediaries Miguel Sard stated that they are happy to announce to potential home owners that they now can offer them some of the best mortgage rates on the lending market.  Sard added that they can now offer rate cuts on their products that are as large as 1.10% on some of their products and that they have seen the largest demand on fixed rate mortgage products which is where much of the cuts were made.  He continued to explain that he expects many borrowers will enjoy the peace of mind that the banking society is able to offer them.

As many potential first time home buyers are being forced into the rental market along with homeowners that can no longer afford to keep their homes those in the buy to let market have been rejoicing as rents continue to rise and their properties experience a competitive amount of inquiries.  In fact, due to the high deposits attached to most of the best mortgage deals and the tight lending criteria many people who previously would have purchased a home are now forced into renting an apartment or home instead.

Due to this fact many landlords are remortgaging their properties even as homeowners have stopped as the forecast has lightened up on the Bank of England threat of an interest rate increase.  This is due to the fact that smart landlords are realizing that if they remortgage right now and take advantage of the low buy to let mortgage rates they will be able to afford more homes to add to their lending portfolio allowing them to take better advantage of the current renting situation in the UK.  In fact, a Paragon Mortgages survey conducted within the month stated that the number one reason that most landlords are deciding to remortgage their property is to raise capital.

Managing Director for Paragon Mortgages, John Heron, stated that about two thirds of the private rental properties do not have a mortgage on them while the average LTV on the properties that do have a mortgage attached to them sits at about 48%.  Therefore, there is a large amount of equity available to those that want to build their portfolios as landlords and with the excellent buy to let mortgage rates savvy investors are realizing that the time to move is now.

Heron went on to say that figures from the Council of Mortgage Lenders display that there has been a large increase in the amount of people remortgaging their buy to let terms during the first and second quarters of 2012 and it would seem that many of the mortgage cases come from landlords that have used their equity in order to continue to expand their portfolios.  He added that as the market becomes more rental based than home based it is quite likely that this practice will become more common place.

Those who are thinking about buying a home will want to act fast while the market is still depressed given the fact that banks are pulling out every trick in the hopes of luring potential home buyers into their doors which include offering the best mortgage rates that have been seen in years.  Among the many great rates that are out there waiting to be taken advantage of are great rates on ten year mortgage terms which is significant given the fact that getting locked into a ten year term will protect you from the eventual interest rate hike.

In the past fixed mortgages that were set at below five percent for just five years were considered to be a great deal, so with this in mind imagine what kind of deal a 3.99% rate on a ten year fixed mortgage would be.  However, now you do not have to imagine as many of the top leading lenders are actually offering this rate or a rate close to it for ten year terms.  In fact, there are five lending societies that have low rates on their ten year mortgage rates including Co-operative, Leeds building society, Britannia, Chelsea building society, and Yorkshire building society.

The lowest and best mortgage rates on ten year fixed mortgage terms come from Chelsea building society which is offering the deal with an associated mortgage fee of £1,495, but it also has an attached LTV of 70% which may be too steep for some people to afford.  For those people the deals from the other lenders may be a better option as they come in between 5.99% and 5.29% and range in LTV values of 75% to 80% which may be affordable for those who want to take advantage of it.

Also enticing is the Skipton building society offer that is set at 5.85% with a low 85% loan to value and no extra fees built into it.  Head of products for the building society Kris Brewster stated that the swap rates are possibly as low as they have ever been, or at least very close.  He added that this has made it possible for Skipton to offer such a cost effective offer for those that are seeking out a great mortgage to make purchasing a new home an affordable option even in the current economic climate.

With mortgage lenders competing to see who can offer the lowest mortgage rates to consumers in an effort to boost their mortgage products and become the top lenders in the face of the falling amount of home sales and house prices.  Santander is the latest company to offer even lower rates to customers springing many mortgage analysts and experts to question just how low the banks will go in an effort to tempt customers into their doors and convince them to take on mortgages in this time of economic uncertainty.

Santander announced that it will now offer its best mortgage rates a full one percent lower for qualified candidates dropping their fixed rate down to 3.99% on five year termed mortgages that are at least 75% LTV or higher.  This deal is only available to customers who shop with their intermediary company Abby for Intermediaries and comes with £995 extra arrangement fee charge that should be factored into the deal when considering if the deal is the right choice for a remortgage or for a new home buyer given the fact that the loan to value is set quite high.

The price cut is most likely not going to help first time home buyers who are unable to head to their parents for help with the 25% deposit owed, but for homeowners that have equity or are looking to remortgage their home with sufficient credit the terms should still be a great buy and helpful for locking in a lower interest rate on their home.  Of course, before making any moves it is important to consider if fixed mortgages are the best choice or if you can afford to play with variable mortgage rates for the next two years in the case that the interest rate does not jump up.

It is said in the mortgage market that there are two types of experts out there, those that will tell you that it is hard to tell how the mortgage market will continue and those that do not know yet that they do not know.  The truth is it is hard to tell for sure if mortgage rates have bottomed out or if they will go even lower as banks continue to compete.  However, it is safe to assume that at some point they will start to rise again at which point it will be too late to take advantage of the many great deals out there.

Those who are thinking about applying for a mortgage loan and crafty landlords that are taking advantage of the current market will be glad to hear that mortgage rates and buy to let mortgage rates are remaining at an all time low compared to the figures seen last year in 2009 according to a new report that has been published be Defaqto the independent financial research agency.  The company also noted that the Bank of England is also holding the base rate down low at just .5% for the 30^th consecutive month.

This is rather remarkable given the fact that over the last year analysts and experts alike have warned that the interest rate could potentially increase which in turn would cause the average mortgage rate to spike as well.  The main concern has been for those with variable mortgages as this could cause their mortgages to jump up by an additional 50 to 70 pounds per month.  Due to this fact, a large amount of the mortgage approvals over the last six months have been for people who have remortgaged their homes in order to secure a better rate that is fixed for extra security in the uncertain mortgage market.

Banking insight analyst for Defaquto David Black stated that in terms of money people who are borrowing with new loans will pay much less past the initial mortgage terms than those that took out a mortgage loan last year in 2009.  He added that those who want to secure fixed mortgages may have great luck right now and be able to get a mortgage that is set as low as 3.3% depending on their credit history and the amount they are able to pay in terms of the LTV of the mortgage loan.

Black added however that it is important to be aware of the factors that go into setting a mortgage rate and that not everyone may be applicable for the low rates advertised in the paper and on the TV due to the tougher set of lending criteria that banks are now imposing.  He also added that there is only one way that the base rate can go now in the future due to the fact that it seems to have bottomed out so those that are drawn to the variable mortgages may want to be careful before signing into any long term deal.

Even though mortgage rates have hit their lowest levels in the last six decades and mortgage approvals are up compared to last year, many people who would previously be first time home buyers are still choosing to rent homes or other property instead of purchasing their own which is benefiting many buy to let landlords.  Business development director Richard Sexton for e.surv noted that the company’s research has shown that renting levels continue to be at an all time high along with mortgage rates allowing those with property to consider raising their prices amidst the competition for high level rents.

Sexton stated that high LTV lending (loan-to-value) is still lagging behind what it was back in 2008 and the high deposits are keeping many people from purchasing homes who would have previously been able to consider the idea back in 2008.  He added that the lending criteria has only loosened slightly since 2008 which has only served to help a small percentage of potential buyers who find themselves with no other choice but to look at rental properties.  Therefore, while some of the best mortgage rates are available right now, only a select few are still able to take advantage of this fact.

This is evident in the fact that most of the mortgage approvals for the past six months have been granted to those looking to remortgage their homes in order to get a lower mortgage rate and not for those that are seeking to purchase a home outright.  Many people that can meet the credit criteria and pay a high LTV are also holding back because in the economic climate they are afraid to spend their savings on a home due to uncertainty about the future.

This is excellent news for investors who are buying up buy to let properties in an effort to cash in on the low property values and the low mortgage rate while they still can.  Even better news for the investors is the fact that it is highly likely that the properties will go up in value once the mortgage market picks back up again.  For the time being most landlords are taking advantage of the current climate to increase their rents in the competitive market in particular in terms of commercial office space and within more competitive residential markets such as London and Manchester.

Leeds Building Society has announced a new set of cheap mortgage deals for buy to let mortgage rates for the month of September. Landlords in need of new mortgage deals would be wise to take a look at these, given the fact that they offer landlords some security in terms of what they can expect to pay out for the next five years.  As the lending market and the rental market continues to bounce up and down, knowing what mortgage payments will be due each month is an excellent way for landlords to stay on top of their budget.

Leeds announced that they will reduce the buy to let mortgage rates attached to their two year mortgage products down to below 4% and as low as 3.5%.  The news is in addition to the .85% cut that the building society made to their three year fixed mortgage products, making them a very competitive choice for those that are looking to remortgage their mortgages or get signed into a better rate while the housing market is still offering some of the best terms seen in the last few decades.

Sales and marketing director for Leeds Building Society, Kim Rebecchi, stated that the company believes that now is a great time for those with buy to let mortgages to get locked into fixed mortgages because they are set at such low rates and will help them with monthly commitments.  By knowing how much their mortgages will cost over the next two to five years landlords are able to properly budget their rent and make sure that they have enough to cover the absence of a tenant when a property is in between letters.   It also means that landlords will not have to worry about a change in the base rate affecting their ability to afford their property portfolio.

Rebecchi went on to say that those who are thinking about investing in property will want to consider purchasing landlords insurance as well as there are new deals for this protective form of insurance available from Leeds Building Society as well.  Also on the table from the building society are free valuations up to £335 and free legal services for some of the fixed two year mortgage products, making them a very attractive option for landlords who want to take advantage of the low mortgage rates.

With so many mortgage lenders now offering lower mortgage rates to buyers, it can be very tempting for a homeowner to consider switching their lender in an attempt to take advantage of the best mortgage rates that are out there.  However, with redemption penalties that are applied to those who end a mortgage, and product fees attached to new mortgage products, it can be hard to determine if you will be better off sticking with a higher mortgage rate or if you will still benefit, even with the fees from switching your lender.

According to mortgage brokers, most of the people that they have received questions from about switching mortgages are those who have fixed mortgages that are set at 6% or higher that were secured before the economic crisis.  The common question is if it would be better to pay the early repayment charge and then remortgage their loan into a new five year fixed mortgage so that they can take advantage of the low rates.  Given the fact that the HSBC has rates as low as 3.34% and Nationwide has dropped rates down to 3.39% it is a very reasonable question, as this is just a sample of the excellent rates that are out there.

In July of 2008, before the market crumbled, rates were as high as 6.49% while the average rate now is around or less than 3.5%.  The real question however is the individual lenders ERC and the actual rate that can be secured with credit now, because different building societies and banks have different penalty charges and these are where your savings can start to disappear.  Some of the ERCs are the same from start to finish of a mortgage, while others decrease over time which can be a large factor in your final decision to remortgage.

The best way to find out if you should remortgage in an attempt to get lower mortgage rates is to speak with your bank and find out what penalties would be attached with ending a mortgage early.  Once you have this figure in mind you can factor out the savings that you would earn from the reduced monthly mortgage rate, compared to what you are paying now and add this up over five years time.  If the price comes out to be much higher than the ERC, then you will be ahead by remortgaging, but if your savings are equal or lower than the ERC it is not worth it.

For those who are shopping for a new home and looking to get a great deal like the best mortgage rates that so many lending agents have been advertising, the news that banking giant Nationwide has slashed their mortgage interest rates even lower as of the first of September may be very welcome.  The company announced that, starting this month, all of their five year fixed mortgage rates will be reduce,  making it a great time to buy or remortgage your home if you are looking for a lower interest rate.

The slashed rates mean that for the average mortgage owner with a loan to value ratio that is around 70% you can take the equity of the home of 30%, or more if you have it, and then take advantage of the fixed rate mortgage that the company is offering.  The new mortgage rate would then be set at the low 3.69% with only a booking fee attached of £999.  For those that want to avoid paying the high booking fee upfront, you can also take the lowered 3.89% mortgage rate and pay £99 as a booking fee in exchange.

In addition to this offer, Nationwide has also announced that those who are looking to apply for a mortgage for the first time instead of a remortgage will get a price break as they have reduced all of their five year mortgage rates for new homeowners by a full 1% of what would have been granted.  While the final rate will depend on your credit history and the amount of the mortgage that you are looking at securing, it is guaranteed that the rate will be the one percent lower than it would have been before the deal was introduced saving new homeowners a bundle over time.

Nationwide head of mortgages, Martyn Dyson, stated that the company has learned from their team of mortgage brokers and consultants that right now borrowers are drawn to the security of five year fixed mortgage packages and therefore the company is offering the rate reduction to make sure that they are competitive among other lenders.  Those who are looking at a tracker mortgage can also benefit if their LTV is between 70%-80% and all first time buyers qualify to receive £500 off their product fees when they secure a mortgage.

The Council of Mortgage Lenders stated this week that it will not revise its gross lending estimate for 2011 despite rumors that it would have to lower its £140bn figure due to the global stockmarket slump and the eurozone debt crisis.  Over the course of 2010 gross lending reached up to £137bn and over May the CML trade group got together to revise its lending estimate up to £140bn from the estimated £135bn.  This is good news as its shows that the CML believes that the mortgage rates will help continue to push life into the market.

During the first half of the year lenders gave out a total of £63bn only which means that unless the mortgage market experiences a second breath of air as the best mortgage rates continue to drop that the CML forecast is going to be too high.  However, a spokeswoman for CML stated that although the company plans to reassess the market later in the year as they usually do, they still do not have any plans to revise the number and are confident that it is a reasonable lending goal to reach.

Samuel Tombs a UK Capital Economics economist stated that the mortgage demand is going to be harshly affected as is only reasonable because of the turmoil attached to the eurozone debt crisis.  Tombs explained that the crisis is going to shake consumer confidence which will make many people hesitant to take out any new loans.  He went on to say that when most consumers’ are worried they save income and shy away from taking on new debt even if the fixed mortgages are sitting at a great rate.  Thus, even though the housing market may look good, people are going to be afraid to take advantage of it.

Chief executive for Home Funding Tony Ward stated that he believes the CML forecast is not reachable given the fact that at the close of June mortgage lenders were already short by £6bn.  He added that most banking lenders will be lucky if they are able to finish off the year with flat gross lending instead of in the hole.  Toss in the threat of the interest rates possibly increasing and right now the housing market is not a very welcoming prospect although the next few months will reveal if the CML was on target or not.