Cheap Mortgage DealsInexpensive mortgage deals
However, the median prices for 10-year fixings are still lower than a year ago and stood at 3.2% in February 2017. At the beginning of the week the head of the Bank of England, Mark Carney, prepared borrower for further and quicker interest increases, although he also emphasised that the increases would be temporary and progressive.
Great headlines - cheap mortgage deals are likely to stay put.
NatWest Bank's new NatWest Bank reports are nipping in the bud every suspicion that increasing headline hyperinflation could put an end to the cheap mortgages currently being taken up by many homeowners. NatWest acknowledges that while this is a result of increasing inflation, which has led to an rise in longer-term interest payments used by creditors to fund their mortgage book, it is unlikely to affect local borrower groups in the near future.
"The Bank of England's figures show that the Bank of England's quotation rates for some reference prices increased in December, but are still significantly lower than 12 month ago," says the NatWest bulletin. They say the median mortgage interest rates for new borrower toward the end of 2016 were 2.17 percent, while the median mortgage interest rates for unsecured mortgage loans a year before were half a percent higher at 2.68 percent.
"Most of the current borrower will therefore continue to be able to remort mortgages at a lower interest rat. In fact, those receiving two-year fixed rates in the next few month are likely to find deals that are a full percent below their current interest rate," the paper says. Yet, the bench has less good news for buying to let borrower.
She reiterates the warning of many others that new Prudential Regulation Authority regulations - which require landlords to meet 5.5 percent nominal interest charges by passing stringent test - are likely to result in the refusal of many requests. NatWest warns: "This test of affordable lending must also take into consideration changes in the easing of mortgage interest payments, where higher-interest taxpayers will not get full credit after April 5 of this year.