Mortgage rate change: I only have 5 percent deposit? on 100 Mortgages

Those with large deposits saw mortgage rates drop in September, if you have a 25 percent deposit you will pay an average of 5.93 percent a drop of 0.15 percent from the previous figure of 6.08 percent, this is the lowest level since March according to the Bank of England.

If you are looking to fix your mortgage deal for five years and have a 25 percent deposit then you’re likely to pay on average 5.85 percent which is a drop of 0.25 percent, this is the lowest rate seen in 6 months, the average Tracker rate on this loan-to-value (LTV) averages at 6.14 percent a drop of 0.6 percent.

But unfortunately if you have a small deposit of 5 percent the cost of a five-year fixed-rate deal has not be changed. According to MoneyFacts.co.uk for the last five months there have been not enough two-year fixed-rate deals around for those with a 95 percent LTV (5 percent deposit).

There are only 43 different fixed-rate mortgages available for people who have 5 percent deposit, and 18 products on variable or discount, this is down from 1,079 July 2007.

After the Bank of England base rate cut, these following lenders have changed their standard variable mortgage rates and passed on the reduction on full, the banks are, Royal Bank of Scotland, NatWest, Barclays’ mortgage arm the Woolwich, Lloyds TSB, Cheltenham and Gloucester and Halifax.

Source: ukpress

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