Era of cheap mortgages is almost over: Lenders warn rates have hit rock bottom after price war and can now only go back up

Mortgage rates have hit rock bottom and can only go up, the Council of Mortgage Lenders warned.

Households are currently benefiting from the cheapest home loans on record after a fierce mortgage price war between lenders.
This has caused a surge in remortgaging as families across the country rushed to snap up cheaper deals.

It has also helped more first-time buyers get on the property market.

These two groups have driven the housing market as a slowdown in house price rises, and falls in parts of the country, have made existing homeowners reluctant to sell.

But the Council of Mortgage Lenders suggested the era of record low mortgages may be coming to an end.

It said the housing market has ‘stalled’ over the last few months and rates are already starting to sneak up.

This is partly because banks have no room to cut rates any more, with borrowers able to find a two-year fixed-rate deal for as little as 0.99%
Mortgage rates are still close to historic lows, but there seems no room for further reductions in rates so it is time to remortgaging and secure yourself a low interest rate while you still can.

If you are on an expensive standard variable rate deal you should considering switch now. Give Homeline Mortgages a call on 01202 937444 for expert advice.