Average Residential Mortgage Interest Rates Drop To Record Level
You are no doubt aware that interest rates in the UK have, for many lending products, been extremely low in recent years and have remained so for a considerable period of time. Obviously this is good news for borrowers whether it is an individual looking for a residential mortgage or a business requiring commercial finance.
Well, according to information from the Bank of England, average interest rates on residential mortgages were at an all time low in April of this year. In April, the mortgage rate dropped to an average of only 2.41% from an average level of 2.49% in March 2016.
This is a bit of a turnaround as between January and February of this year interest rates started to increase. However, following the Governor of the Bank of England saying in February that interest rates may be reduced, this seems to have started a little bit of a price war between residential mortgage lenders. This has resulted in some lenders offering even more attractive mortgage packages.
There will be some customers that merely approach their existing mortgage lender when they wish to move home and require a mortgage or stay with their existing lender when their current mortgage deal ends rather than look at what other lenders have got to offer.
With so many lenders providing mortgages, people may wish to shop around to try to obtain a more competitive finance package. Obviously when doing so a customer will need to take into account any early repayment charges that may be payable on their existing mortgage deal to establish if a switch is financially viable.
You can try to source a more competitive mortgage package in a number of ways such as by popping into the branches of many of the high street lenders if you prefer to meet with someone on a face-to-face basis. Alternatively, a lot of people now use the Internet to source suitable residential mortgages through the likes of one or more price comparison websites. Another option is to use an independent specialist mortgage broker who has an extensive panel of lenders that they can access.