Dropping Mortgage Rates Great News for Buyers

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08 Dec 2022

There has been some excellent news for home buyers recently surrounding the dropping mortgage rates, making it even more affordable to buy an energy-efficient new home.

According to a report in The Guardian newspaper, the average five-year fixed mortgage rate has dropped below 6% for the first time since the beginning of November.

The average two and five-year fixed mortgage rates reached 5.90% and 5.67% respectively at the start of November but, according to the Mortgage Advice Bureau – the network of more than 2,000 mortgage advisers across the UK - these have already dropped to 5.38% and 5.07% respectively and show no signs of stopping.

This opinion is backed up by money comparison experts Moneyfacts.co.uk, whose finance expert was quoted by The Guardian as saying: “Borrowers may well breathe a sigh of relief to see that fixed mortgage rates are starting to fall.

“As the average five-year fixed mortgage rate falls below 6% for the first time in seven weeks, borrowers who paused their home ownership plans, or indeed parked the idea of refinancing, may now be tempted to scrutinise the latest deals on offer.”

And this is where new build homes become so attractive to those people looking to move onto or up the property ladder.

New-build homes give buyers clarity on timescales, enabling them to save for a deposit and they take away the annoying issue of missing out on the property they want, which can be both costly and frustrating.

Furthermore, as the cost of energy shows no sign of reducing, new build homes offer far greater energy efficiency than older homes.

Sharon Spinelli, Sales and Marketing Director at Robertson Homes, said: “According to the House Builders Federation (HBF), owners of new build homes found their heating bills to be 59% cheaper per year than those in an older home and carbon emissions were far less in a new-build home compared to an existing dwelling, making new builds a more sustainable option.

“The calming of the mortgage markets means home buyers can now proceed with their new home purchases with greater confidence. Furthermore, many mortgage advisers can access mortgage deals until December 2023 with certain lenders reverting to lower rates if rates fall between application and completion date.

“We are already noticing an increase in visitors to all our developments so it is great to see some positive mortgage news finally filtering through despite the uncertainty of recent months.”

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