With interest rates at all-time lows, lenders continue to cut mortgage rates. But what caught the imagination of journalists was Yorkshire Building Society’s decision to launch the cheapest mortgage rate ever – a two-year discounted rate at just 0.89 per cent. While mortgage rates are cheap, a rate this low was unheard of and The Times reported it as the lead story or ‘splash’ on its front page.
Bien Media client Mark Harris, chief executive of mortgage broker SPF Private Clients, was subsequently quoted on the front page of The Times, providing insight as to why the lender was launching this rate at this particular time: ‘The debt market is oversupplied and when supply outstrips demand the simple economics is that mortgages become cheaper. If the [general] election means people put decisions to buy on hold then we could see even more competitive deals in an effort to attract borrowers,’ he said.
He added that this may not be the last we have seen of the cheapest rates: ‘The message is the same from all lenders – none of them are overly happy with the volume of business they are doing and want to do more. It’s great news for borrowers.’
To read the article in full, click on the link (subscription required): https://www.thetimes.co.uk/article/lenders-square-up-for-mortgage-price-war-as-rates-hit-record-low-l62vz8bk0