Most UK homeowners are aware of the benefits of homeownership, but a few really understand the simple steps to buying their first property. This is mainly due to the sheer complexity of the process. The mortgage process alone involves multiple stages and documents and takes about three to five months to get the paperwork approved. Mortgaging is the easiest and the most popular way to get a lump sum after completing a set of procedures. After getting on the property ladder through a mortgage, it’s important to be constantly aware of the rate movements as, ultimately, they can impact how much the buyer spends each month. Borrowers will generally use a facilitator to get the best mortgage offers and find the deal which offers the lowest rate on their home loan.
Applying for a mortgage in the UK has a lot of benefits for people who are planning to purchase a property. Mortgage loans are provided by the National banks and mortgage lenders who are available in the neighbourhoods of London. Most people prefer approaching lenders as they are more flexible and offer customisable mortgage loans compared to banking procedures. Lenders also offer additional deals along with discounts on mortgage rates.
With the rise in the number of properties for sale in Bicester and in other neighboring counties in the UK, mortgage lenders have reduced the interest rates regularly, and the loan-to-value range has subsequently increased in the past few months. These changes have encouraged more property buyers to invest in the assets here by availing of the best offers from the local mortgage lenders. The rise in the number of buyers in 2020 drove up the UK’s property market. The post-lockdown improvement in the housing market brought about steady competition amidst mortgage lenders across different regions of the country leading to the constant change in mortgage rates and the addition of exclusive deals that come along with mortgage loans.
Among the many other lenders available in the UK, Nationwide building society has raised the bar with their jaw-dropping mortgage deals that have not been offered by any other lender in the country to date. The lowest ever rates for a long-term mortgage loan have been introduced recently, making it easier for the borrowers to pick the best deal. The fixed and tracker rates for first-time buyers, remortgage and new customers moving home are relatively low with improved LTV rates for a given term. Members of the Nationwide society can get additional discounts up to 0.40% for tracker and fixed rates with 95% LTV.
The mortgage loans are cut up to 0.30% for both tracker and fixed-rate deals with a maximum of 95% LTV offered for the buyers. Tracker rates are provided at 60% LTV, which is reduced by 0.20% to 1.09% with an additional fee of £1,499. The fixed rates for a two-year contract at 95% LTV are reduced by 0.25% to 2.99% with a £1,499 fee. While a 75% LTV for a two-year fixed rate is decreased to 1.44% with no fee. These rates differ for a further extended contract applied by the borrower where 75% LTV is reduced to 1.14% with a £999 fee for a three-year fixed rate and 85% LTV is provided with a £1,499 fee for a full five-year contract at 2.20% which is beneficial for new buyers.
Most buyers apply for a remortgage plan where the reductions are up to 0.40% for tracker and fixed-rate contracts that come with an overall 85% LTV. A 60% LTV for a two-year fixed rate is reduced by 0.87% with a fee of £1,499 while the tracker rates for the same duration is reduced to 0.99% with a further reduced fee of £999 for a 60% LTV. A 75%M LTV for a two-year fixed rate is decreased to 0.99% for a fee of £999. The price range differs with the contract’s duration, and the LTV provided to the borrower. A three-year fixed-rate contract comes with an 80% LTV with decreased rates of up to 1.59% and a fee of £999. The fixed rates set for a five-year contract is up to 2.29% for an 85% LTV.
MOVING HOME RATES
The fixed and tracker rates for new customers planning to move homes have a reduced rate of 0.40% at a 60% LTV range. The additional fee required for fixed rates is about £1,499, and tracker rates are for a fee of £999. A two-year fixed rate for a 75% LTV is offered with a reduced rate of up to 1.00% with an additional fee of £1,499. Similarly, the fixed-rate contracts for a three-year deal have a reduced rate of 2.99% for a fee of £999, and a five-year contract at 85% LTV has a reduced rate of 2.16% for a £1,499 fee.