In a world where economic uncertainties have become the norm, it’s always welcome news when mortgage rates take a downward turn.
For the past ten weeks, mortgage rates in the UK have been steadily declining, and this trend is making 60% Loan To Value (LTV) mortgages more affordable than they were just a year ago.
How will this benefit homeowners and prospective buyers?
The mortgage rate plunge
The past year has been a rollercoaster ride for the UK housing market, with many challenges stemming from the COVID-19 pandemic and economic instability.
However, amid these uncertainties, one thing has remained constant – the gradual decline of mortgage rates. For ten consecutive weeks, interest rates have been steadily dropping, creating an opportunity for homeowners and potential buyers alike.
This trend can be attributed to several factors, including the government’s commitment to stimulating the housing market and the Bank Of England’s decision to maintain historically low base rates.
But the real question is: how does this affect those looking to secure a 60% LTV mortgage?
60% LTV mortgages – a snapshot
What is a 60% LTV mortgage, and why is it so relevant in today’s market?
Loan to Value (LTV) Ratio is the percentage of the property’s value that you need to borrow. In the case of a 60% LTV mortgage, you are borrowing 60% of the property’s value and providing a 40% deposit.
From a mortgage lender’s perspective, they will generally offer more attractive terms and lower interest rates on mortgages with higher deposits (lower LTV ratios). This is because they view these loans as less risky due to the significant deposit.
The benefits of 60% LTV mortgages in today’s market
- Lower interest rates: The primary advantage of a 60% LTV mortgage is the lower interest rate. As mortgage rates continue to drop, borrowers can access even more attractive deals, resulting in significant long-term savings.
- Reduced monthly repayments: With lower interest rates, your monthly mortgage repayments become more affordable. This extra cash flow can be redirected towards other essential expenses or savings.
- Stable monthly budgeting: Predictable monthly payments provide stability to your budget, making it easier to plan for the future and achieve your financial goals.
- Increased property options: A 60% LTV mortgage widens your range of property options. With a substantial deposit, you’re in a better position to explore different neighbourhoods and property types that might have previously been out of reach.
- Improved loan approval odds: Lenders view lower LTV mortgages as lower-risk investments. Therefore, you’re more likely to receive mortgage approval, even if you don’t have a perfect credit score.
Why act now?
The fact that mortgage rates have consistently dropped for the past ten weeks presents a compelling reason to act swiftly if you’re contemplating a 60% LTV mortgage. Here’s why:
- Historically low rates: We are currently experiencing historically low mortgage rates. These rates are unlikely to stay this low indefinitely, making now an ideal time to secure a favourable rate for your mortgage.
- Economic uncertainty: Economic conditions can change rapidly. By securing a low-rate mortgage now, you can protect yourself from potential future rate hikes and economic uncertainties.
- Favourable lender attitudes: With the market favouring lower rates, lenders are more inclined to offer competitive terms and negotiate with borrowers. This is especially beneficial for those considering 60% LTV mortgages, where lenders often compete for your business.
Mortgage Saving Experts: The expertise you need
At Mortgage Saving Experts, we are committed to helping individuals secure the best mortgage deals tailored to their unique financial circumstances.
We are well-versed in the intricacies of the UK mortgage market, ensuring we provide our clients with the most up-to-date information and expert advice.
Here are some ways in which Mortgage Saving Experts can help you benefit from the current trend of decreasing mortgage rates.
- Access to exclusive deals: Mortgage Saving Experts have access to exclusive mortgage deals that may not be available to the general public. We provide guidance on different options, including fixed-rate mortgage deals.
- Personalised advice: We assess your financial situation and provide personalised advice on the most suitable mortgage options for your needs.
- Savings maximisation: Our expertise allows us to identify opportunities for cost savings, ensuring that you get the best possible deal.
- Time and stress savings: Instead of navigating the complex mortgage market on your own, Mortgage Saving Experts will handle the legwork for you, saving you time and reducing the stress associated with mortgage applications.
Mortgage Saving Experts: The path to affordable homeownership
With 60% LTV mortgages now more affordable than they’ve been in a year, there has never been a better time to explore the possibilities and make your homeownership dreams a reality.
With the assistance of Mortgage Saving Experts, you can take full advantage of the historic low rates, securing a mortgage that aligns with your financial goals and aspirations. So, don’t let this golden opportunity slip through your fingers. Get in touch and speak to a mortgage broker at Mortgage Saving Experts today to see how you can take full advantage of lower interest rates to secure your financial future or save substantially on your existing mortgage.