In times of such uncertainty, many mortgage consumers will be looking to find a fixed-rate mortgage. Enable’s IFAs in Bishops Stortford are pleased to see that, despite the fall in overall deals available, the total percentage of deals in the market that offer incentives for a fixed-rate mortgage has increased recently.
In addition to Enable’s recent mortgage deal discounted fees for re-mortgaging some recent research reveals that since March, the number of deals with free/refunded legal fees has increased from 49% of the total number of mortgage products to 54% on the 19 June. In additions, the number of deals with a free/refunded valuation has increased from 71% of the total number of mortgage deals in March to 78% on the 19 June, and the number of deals with cashback has also gone up but only slightly from 31% to 33%.
It has to be good news for consumers who want to find a new fixed-rate mortgage deal, but as with any offer or deal, it is important to look at the small print. “While the increase in the proportion of products that carry an incentive, the package is inherently positive and can alleviate some of the upfront cost associated with a new deal, borrowers do need to be aware that these incentives are likely to only cover the basics.” Says Eleanor Williams.
Alongside the increase in incentives since March, the average rates on fixed mortgage deals have fallen. “The average rate on deals with a fee has fallen by 0.59%, from 2.89% in March to 2.30% on 19 June. The average rate on deals with no fees has fallen by 0.52%, from 2.80% in March to 2.28%. During this period, the average standard variable rate (SVR) has fallen by just 0.42%, from 4.90% in March to 4.48% on 19 June, which means that consumers who have been moved onto their lender’s SVR may have seen their average monthly repayments fall, but they could still get a lower rate by switching to a new deal.” According to Money Facts UK.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage