Property buyers told to act quickly on low rates

Homeowners looking to remortgage or change property have been urged to act quickly to take advantage of some of the low rates currently on offer in the market. While first-time property buyers are still facing difficult lending criteria, uSwitch.com notes that competition in the wider mortgage sector has driven rates down.

However, these low rates do not tend to remain available for long, as highlighted by HSBC’s decision to withdraw its five-year 2.99 per cent fixed-rate deal. The lender is not replacing this particular product, but has cut the fee on its five-year 3.29 per cent fixed-rate deal from £999 to £499.

Michael Ossei, personal finance expert at uSwitch.com, says homeowners need to act quickly if they want to take advantage of the competitive market.

“Although we hope other lenders will launch new deals to fill the gap you can never be certain and the worry is that more market leading rates will be pulled in the near future and replaced with less competitively priced deals,” he explained.