If you’re looking for a property to buy in Slough and the surrounding area, make sure you give the leading estate and lettings agents in Colnbrook a call on 01753 683000or email us and we’ll help you find your next place to call home.

This blog looks into the current state of UK mortgage rates (based on data from Rightmove).

Current mortgage rate trends

Recently, there have been significant discussions regarding Base Rate rises and their impact on mortgage rates. The Bank of England convenes every six weeks to determine whether the Base Rate should increase, decrease, or remain stable. The 22nd June saw the Base Rate rise to 5%, 0.5% up from the 4.5% in March.

According to Rightmove’s mortgage expert, Matt Smith, this has led to further increases in mortgage rates as the market adjusts to two sets of disappointing inflation numbers. However, there is hope that the pace of change will slow down, especially for five-year fixed-rate products, and stability might be on the horizon in the medium term.

Current UK mortgage interest rates

As of w/c 26th June, the average fixed-term mortgage rates for homebuyers with various loan-to-value (LTV) percentages were as follows:

For Homebuyers with 5-10% Deposits:

• 95% LTV, 2-year fixed: 6.62% (0.26% increase from the previous week)
• 95% LTV, 5-year fixed: 5.87% (0.06% increase from the previous week)
• 90% LTV, 2-year fixed: 6.09% (0.21% increase from the previous week)
• 90% LTV, 5-year fixed: 5.67% (0.20% increase from the previous week)

For Homebuyers with 15-25% Deposits:

• 85% LTV, 2-year fixed: 5.93% (0.21% increase from the previous week)
• 85% LTV, 5-year fixed: 5.50% (0.19% increase from the previous week)
• 75% LTV, 2-year fixed: 5.77% (0.19% increase from the previous week)
• 75% LTV, 5-year fixed: 5.36% (0.17% increase from the previous week)

For Homebuyers with 40% Deposits:

• 60% LTV, 2-year fixed: 5.67% (0.26% increase from the previous week)
• 60% LTV, 5-year fixed: 5.26% (0.21% increase from the previous week)

(Stats from Rightmove)

How much can you borrow for your dream home in Colnbrook, Slough?

The amount you can borrow with a mortgage depends on your affordability assessment, and your interest rate is determined by your loan-to-value (LTV) ratio. LTV is expressed as a percentage and represents the size of the mortgage relative to the property’s value. The higher your deposit (lower LTV), the better your interest rate is likely to be.

An online mortgage calculator is a great tool to get a quick estimate of how much you could borrow. Alternatively, you may have seen the term Mortgage in Principle used a lot in more recent times, getting a Mortgage in Principle will bring you one step closer to securing a mortgage offer as the lender will already have your information when you come to get the final mortgage agreement.

Remember, your ability to borrow depends on various factors, including your deposit size and affordability. So, do your research, use available tools like mortgage calculators, and speak to our expert team here at S John Homes to ensure that you make well-informed decisions on your homeownership journey.

Purchasing a home, whether it is your first or tenth, it is a significant milestone. Understanding the current mortgage rates is a vital step towards achieving your dreams of homeownership. Our best advice is to stay informed with the market, compare options that are out there and take advantage of the resources available to help you to secure the best possible mortgage deal for your future home.

Moving is a busy and exciting time and we’re here to make sure the experience goes as smoothly as possible by giving you all the help you need under one roof.

Contact Us

If you would like to speak to someone about your property, or if you are considering buying a property, for yourself or to let or you’re in need of finding rental property, we are the leading independent estate agents in Colnbrook. So, contact us on 01753 683000 or email us. You can also follow us on Facebook,  LinkedIn and Instagram.

If this is exciting news for your next move, or if you’ve already got a mortgage in principle, get in touch today, we are the leading estate agents in Colnbrook. So, if you are looking to buy or sell in the area, or you are a landlord or looking to rent in the area and have any questions, make sure to give us a call on 01753 683000 or email us.

In this blog post, we will explore the details of the new deposit-free mortgages, including Skipton’s ground-breaking product and other lenders’ existing 100% mortgages available in the market. If you’re interested in finding out if you are eligible for a deposit-free mortgage, give us a call today.

The need for deposit-free mortgages

For many first-time buyers, entering the property market has become an uphill struggle. The formidable deposit requirements of 5% or 10% or more often pose significant hurdles, particularly when combined with soaring rental expenses. According to Homelet Rental Index Data (excluding London), average UK rent prices have surged by 9.8% over the past year, reaching a staggering £1,184 per month. Meanwhile, house prices have remained persistently high, despite recent market fluctuations.

So, here comes Skipton’s deposit-free mortgage!

Recognising these challenges, Skipton Building Society has taken a proactive approach to alleviate the burden for aspiring homeowners. Their deposit-free mortgage introduces a fresh perspective by considering a borrower’s consistent rental payment history as an alternative to the traditional deposit requirement. Pending approval from financial regulators, this mortgage product has the potential to offer a 100% loan-to-value (LTV) ratio, extending a lifeline to numerous ‘trapped’ renters who have diligently fulfilled their rental obligations but struggle to accumulate a deposit.

Understanding 100% mortgages

While Skipton’s deposit-free mortgage is undeniably ground-breaking, it is worth noting that other lenders already provide similar 100% mortgages. These products typically require additional support and guarantees, often from parents or family members. Known as family-assisted mortgages, they empower first-time buyers to secure a mortgage without an upfront deposit. However, lenders usually request supplementary security, such as locked funds in a savings account or equity in the parental home, to mitigate risks. If you’re interested in finding out if you are eligible for a deposit-free mortgage, give us a call today.

Who can apply for the new deposit-free mortgage?

You might be eligible for this type of mortgage if:

• Each applicant is a first-time buyer
• Each applicant is aged 21 or over
• You have less than a 5% deposit
• Each applicant has no missed payments on debts / credit commitments (e.g. mobile phone bill) over the last 6 months
• You want to borrow up to £600,000
• You meet the household-to-household criteria
• You’re not looking to buy a new build flat
• You have proof of having paid at least 12 months’ rent in a row, during the last 18 months
• You must also have experience of paying all household bills (e.g utility bills, council tax etc.) for at least 12 months in a row, during the last 18 months.

Skipton Building Society’s track record deposit-free mortgage represents a significant leap forward, opening up new possibilities for first-time buyers. As the property market continues to evolve, it is essential for first-time buyers to explore these exciting opportunities and seek guidance from experienced estate agents, such as ourselves, who can help navigate the ever-changing landscape. If you’re interested in finding out if you are eligible for a deposit-free mortgage, give our expert team a call today to discuss your options.

Don’t let the deposit dilemma hold you back from realising your dreams of homeownership, get in touch with our office today.

Contact Us

If you would like to speak to someone about your property, or if you are considering buying a property, for yourself or to let or you’re in need of finding rental property, we are the leading independent estate agents in Colnbrook. So, contact us on 01753 683000 or email us. You can also follow us on Facebook,  LinkedIn and Instagram.