The Bank of England base rate has remained at an all-time low of 0.50% for three years, the longest hold for 60 years, report Moneyfacts.
Moneyfacts research shows that as the current economic climate took hold three years ago the average deposit needed for a mortgage rose to 40%. Currently it hovers around the 25% mark, thanks to an increase in higher loan-to-value deals. Although we have a stagnant base rate, credit cards and overdraft charges have risen. Loans, however, are becoming cheaper.
By comparison, initial residential mortgage rates have continued to fall in most cases compared to three years ago; although mortgage fees are the highest since Moneyfacts records began over two decades ago. However, this could be about to change as despite no move in base rate, some lenders have announced increases to their standard variable rates.
Rachel Springall, spokesperson for Moneyfacts.co.uk, said:
"Over the last three years mortgage choice has almost doubled, which will be good news to prospective borrowers. The number of higher loan-to-value mortgage products has increased, giving more choice to borrowers with limited deposits. While the number of mortgage deals has increased, fees are at their highest since Moneyfacts records began, so consumers need to check the true cost of any mortgage offer".
"Borrowers affected by an increase to their SVR should review their repayments and consider shopping around for the best deal rather than assume it will come from their current lender".
"Personal loans are becoming more affordable and this may be due to a set repayment scheme over a specific term, which is great news to consumers looking to consolidate their debts. Credit cards continue to work on a minimum repayment system, so if customers are not careful the interest applied each month could mean that a debt would never get repaid."
At MDS Sutton our mortgage sourcing systems allow us to compare the actual costs of re-mortgaging compared to your actual current pay rate or indeed any possible new deal being offered by your existing lender. It's free to find out if we could save you money, so why wait?