Is a mortgage war on the cards? Good news for UK consumers? (1)

At the beginning of March 2017, Yorkshire Building Society launched a 0.99% two-year mortgage.  This is following the trend from Santander who launched their own .99% fixed rate in February 2017. Referring to the Yorkshire Building Society offering, it is available for new mortgage applications and remortgages. For home purchasers, it comes with the proviso of £1495 fee and 40% deposit.

Last year, HSBC also had a 0.99% two-year fix which was withdrawn in December.

With overall base rate of interest staying stubbornly low to further inspire market conditions, this the has been welcomed by many. It has been predicted interest rates will remain at their all-time low for the foreseeable future as inflation has started to rise and the prospect of Brexit will be more keenly felt once Article 50 is lodged and the UK’s exit from the EU is confirmed.

Lenders are often marketing their latest offers, Santander’s and Yorkshire’s offer is flying in the face of recent fixed rate mortgage increases from their competition. Looking into the details of the Yorkshire Building Society reveals plenty. For instance, the £1495 is a sizeable one and this can’t be offset. When looking at the headline, don’t forget to check the detail – this cost will be added to the overall cost of the loan.

There is a great deal of competition in the market place and it’s just these two lenders offering the low rate. The others are looking at the market forces and how the economy is behaving before launching their inevitable response. At the time of writing (March 2017), the UK economy is basking in the glow of consistent growth. The FTSE is growing week on week and the IBR has uplifted its expectations for the UK’s economic output in 2017.

Hayes Finance Mortgage BrokerAt Hayes Finance, you have access to brokers who have developed first-class relationships with all the lenders, so we can find a package that precisely suits your needs. This is not just for the short-term, but considers your longer term needs and forecasting.

To find out more, do call us on 020 3126 4898 or email: info@hayesfinance.co.uk