It might be easy to assume that the property market experienced a deeply difficult 2019, what with the seemingly unending political upheaval only recently subsiding thanks to December’s general election. But with increasing numbers of first-time buyers and continued high-demand for rental properties, it’s clear that there have been positive signs for those wishing to complete transactions, and nowhere has that been more apparent than for borrowers.
A most competitive market
Fierce competition between lenders has resulted in falling rates across all loan-to-value levels, which has certainly caused a headache for providers such as AA, Secure Trust Bank and Sainsbury’s. Indeed, all three lenders exited the sector during the course of 2019, but the increased competition has provided borrowers with a raft of options at competitive prices.
Exciting rates on offer
Two-year and five-year average fixed mortgage rates have seen notable falls throughout the year, with the former decreasing from 2.69% in January to 2.59% in November for 95% loan-to-value (LTV) rates and the latter dropping from 3.37% to 2.75% in the same timeframe. Interestingly, the lowest average rate across the year for both came as the year drew to a close.
Is now the time to enter the market?
Whether you’re looking to seal a home or merely remortgage your current property, it’s clear from the market’s health this year that conditions are positive for lending. Those looking to apply for a mortgage will benefit from competitive rates and will have options aplenty, whilst those looking to remortgage can also reap the rewards of the market’s current position.
For instance, anyone who took out a two-year fixed rate mortgage in December 2019 at what was then an average rate of 2.35% would benefit from a new average rate of 4.89%, according to data provided by Moneyfacts.co.uk. This would provide anyone with a £100,000 repayment mortgage over a 25-year term with a repayment close to £130.
Thinking of Selling or Letting? Buying or Renting? Contact Sansome & George on: 01256 807 111 or visit the website: www.sansomeandgeorge.co.uk
