Mortgage rates in the UK are expected to remain low, according to Moneyfacts. They said in July 2016 that competition had driven loan costs down since January and expected this to continue. Property prices remain high – over 12 times average local earnings in Brent, North London, for example – and the number of first time buyers has fallen by a third in the last 10 years. But for people who can get onto the property ladder, the cost of borrowing is historically low.
Key Takeaways:
- UK mortgage interest rates – already at record lows – have fallen in the first half of the year and “show no signs of stopping”, according to Moneyfacts.
- Even though loan costs have fallen, many potential first-time buyers still struggle to raise the funds required – the number of new buyers has fallen by a third in the last decade.
- First-time buyers face the highest prices in London, paying £384,000 on average, compared to just £110,00 in Northern Ireland.
“The cost of all types of fixed rate mortgage had dropped on average since January.”