Mortgage Rates Drop, Product Choices Rise: Why You Need a Mortgage Broker

by | Tuesday 10th Oct 2023 | Mortgage News

Fixed mortgage rates drop across the board. Borrowers need professional advice, now more than ever.

Fixed mortgage rates drop across the board. Borrowers need professional advice, now more than ever.

In recent weeks and months, the mortgage market in the UK has witnessed a significant shift, as fixed-rate mortgages have seen notable reductions, making homeownership more affordable (if only marginally) for many. According to the latest Moneyfacts UK Mortgage Trends Treasury Report data, mortgage rates have fallen across the board, and the overall product choice has grown. While these developments are undoubtedly promising for potential homebuyers, navigating this complex landscape requires expertise. This is where the importance of using a mortgage broker becomes paramount.

Falling Fixed Mortgage Rates

The Moneyfacts UK Mortgage Trends Treasury Report highlights that average fixed mortgage rates across all Loan-to-Value (LTV) tiers on two- and five-year fixed-rate deals have declined for two consecutive months. Between the start of September and the start of October, the overall average two-year fixed rate fell to 6.47%, while the average five-year fixed rate decreased to 5.97%. Although the two-year fixed rate is still 0.50% higher than its five-year counterpart, this gap has narrowed compared to the previous month.

Additionally, the report reveals that the average ‘revert to’ rate or Standard Variable Rate (SVR) has continued to climb, reaching 8.18%. This rate is at its highest level since Moneyfacts began electronic records 16 years ago. Meanwhile, the average two-year tracker variable mortgage rate has also fallen month-on-month to stand at 6.17%.

Expanding Product Choice

One of the most significant developments in the current mortgage market is the surge in product choices. The report indicates that product choice has risen monthly, reaching an impressive 5,495 different options. Notably, there is also a record number of deals available at the 75% LTV, totalling 1,014 options, highlighting the increased stability in the market.

Competitive Rates from Major Lenders

In addition to the data provided by Moneyfacts, other financial organisations have reported even lower average fixed mortgage rates offered by major lenders, often referred to as the “big six.” These lenders include Nationwide, Santander, HSBC, Halifax, Barclays Bank, NatWest, and Lloyds Bank. Uswitch reports that the average 2-year fixed rate mortgage at 75% LTV currently stands at 5.70%, reflecting a drop of 0.14% in just one week. Similarly, the average 5-year fixed rate at 75% LTV now stands at 5.18%, with a drop of 0.05% within the same week.

Why You Need a Mortgage Broker

While these reduced mortgage rates and increased product choices are undoubtedly positive news for potential homebuyers, it’s crucial to recognise the significance of seeking professional guidance when navigating the mortgage market. This is where a mortgage broker can play a pivotal role. Mortgage brokers are experienced professionals who can help you secure the best mortgage deal tailored to your specific needs and financial situation. Here’s why you should consider using a mortgage broker:

1. Expertise: Mortgage brokers possess in-depth knowledge of the mortgage market, including access to exclusive deals and rates that may not be available to the general public.

2. Time-Saving: They save you the time and effort of researching and comparing numerous mortgage products, as they do the legwork for you.

3. Personalised Advice: Mortgage brokers assess your unique financial situation and goals to recommend mortgage products that align with your needs.

4. Access to Lenders: Brokers often have established relationships with various lenders, allowing them to negotiate better terms on your behalf.

5. Saves Money: By finding the most competitive rates and terms, a mortgage broker can potentially save you money over the life of your mortgage.

Speak To A Mortgage Professional

In a market as dynamic and diverse as the mortgage industry, having a knowledgeable professional on your side is invaluable. As fixed-rate mortgage rates continue to trend downward and product choices expand, it’s essential to make informed decisions, and a mortgage broker can help you navigate the complexities of securing your dream home.

So, if you’re considering purchasing a property or refinancing your existing mortgage with a remortgage or product transfer, don’t underestimate the benefits of enlisting the assistance of a trusted mortgage broker. They are your key to unlocking the best mortgage deal in this favourable market environment. Call or email our team today to schedule an appointment. We are here to help you.

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