Lowest fixed rate mortgage UK
One high street bank announced it would lend up to £5million to buyers on the 0.94% rate. Borrowers need to have a house deposit of at least 40%, and the deal comes with an arrangement fee of £999. Another lender is offering those who are remortgaging a two-year fixed mortgage deal with an interest rate of 0.94%, which comes with a choice of free legal fees or £300 cashback. There is also a cap lending at a maximum of 60% of the property value, meaning you’ll need to put down a 40% deposit. The fee for this particular mortgage deal is £995.How can I qualify for a low mortgage rate?
For those with the right circumstances, the 0.94% mortgage can offer huge savings. If you have a large sum of money set aside for a deposit or high levels of equity, you’ll likely qualify for this low mortgage rate. Here’s an example of the lender’s borrowing criteria:- Good credit score - A poor credit score doesn’t reflect well on a mortgage application, especially when it comes to qualifying for the cheapest mortgage deals in the UK. Check your credit file to ensure there are no errors and excess debt before applying.
- Affordability criteria - Lenders will take a look at your income, bills, and expenses to see if you’d be able to afford the mortgage repayments.
What are the advantages of low fixed rate mortgages?
If you’re considering securing a low fixed rate mortgage like the new 0.94% deal, here are some advantages in doing so:- The interest rate you pay remains the same for the duration of the fixed rate term (in this case, two years), no matter what happens to interest rates.
- Knowing how much your mortgage repayments will cost over the next two years gives you both security and peace of mind, allowing you to budget for any renovation work and general costs of home life.
- Lenders are continually competing to offer the lowest fixed rate mortgage deal, giving you plenty of options when it comes to applying.
