Good news for first-time buyers this week – plus, why are more landlords setting up limited companies?
Every Friday we take an overview of the mortgage market, hearing from industry voices and getting a round-up of the best rates courtesy of the independent experts at Moneyfactscompare.co.uk.
Mortgage rates have continued their trickle down this week – a process that’s been under way since the summer as the path towards lower interest rates now seems set (even if the Bank of England appears keen to walk down the path very slowly).
This is how average rates are looking – though it’s important to stress that many borrowers will now be able to get deals much nearer, or even below, the 4% mark…
First-time buyers
There was a significant boost for those looking to get on the housing ladder this week as Nationwide announced it would start lending up to six times someone’s salary.
David Hollingworth, a director at L&C Mortgages, told Money that this could help combat two serious challenges facing these buyers – house prices remaining “extremely resilient” despite some falls over recent years, and building a deposit during a cost of living crisis.
“The need for the longer fix is to give stability of payment and remove the chance of interest rate fluctuation pushing payments up and also enables them to apply more flexible stress rates,” he said.
Mr Hollingworth pointed out that…
