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Record low rates hit busy mortgage market: best mortgages for first time buyers, property owners & investors

July 12, 2021 Reading Time: 3 minutes

After an unprecedented year, it’s fantastic to see rate competition return to the UK mortgage market. 

Brokers’ confidence has grown parallel to the rush of buyers who raced to beat the exemption on stamp duty fees before the Holiday scheme’s expected end in March this year (but was extended until June instead). Homeowners collectively borrowed £35.6bn in March—the highest amount since Bank of England records began!

Estate Agent

As options soar, the mortgage market is expected to remain buoyant, with many of the best mortgages for first time buyers, property owners and investors available now. 

Ready to explore your mortgage options? 

For first-time buyers

The 95% mortgage guarantee scheme launched in April as part of the Government’s new Affordable Housing Scheme has strengthened the interest in mortgages and bolstered options. There are now around 200 different first-time homebuyer mortgages for you to choose from!

The Government launched a First Home scheme in May as an addition to their affordable housing agenda. Property developers taking part offer properties to first-time buyers and key workers at a minimum 30% below their market value. 

Oakland estate

Do you earn less than £80,000 a year? If yes, you’re likely to qualify for the new shared ownership scheme and a specialist accompanying mortgage. You can eventually own your first property outright by increasing your share by the new and more affordable amounts of 5% or 1% when paying in cash.

For existing homeowners

HSBC has just launched two-year fixed-rate mortgages with interest at a record-low rate of 0.94%—beating the previous 0.99% offered by TSB. It’s definitely one way to conquer competition and benefit homebuyers by making monthly loan payments and higher-priced homes more affordable.

It’s an attractive option if you have equity or a deposit that matches at least 40% of your current home’s value and can pay a £999 arrangement fee. Albeit, if you don’t wish to pay the fee, HSBC also offers a best-buy fee-free deal at a fixed 1.14% for two years. 

For buy-to-let investors 

If you invest in property, you can similarly take advantage of the booming mortgage market. 

According to Moneyfacts, the choice of buy-to-let and let-to-buy mortgages peaked at more than 2,700 in March, with an average two-year fixed rate option of 2.98%. An increase of nearly 1,000 deals annually!

Oakland estate agent

‘Green deals’ are also on the rise as brokers look to support landlords with properties with an EPC C or below by offering higher loan-to-values, lower fees or better interest rates. And they are expected to play a key role in meeting the Government’s targets for energy-efficient housing in the UK. 

It’s worth shopping around for the best deal for you specifically or talking to a market specialist whilst keeping in mind the active options mentioned above.

However, the increase in competition among lenders has led to a 28-day average shelf-life for mortgages, meaning you may need to move fast to secure a deal before the lender retracts it. 

If you’re looking to move to East London, you can always chat with our local property professionals at Oakland Estates on 0203 972 7341 about your mortgage plans or discover for-sale properties in East London today. 

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