AI-Summary – News For Tomorrow
UK mortgage rates are seeing upward pressure as major lenders anticipate the Bank of England’s interest rate decision, expected to remain at 4% due to persistent inflation. Simultaneously, low-deposit mortgages (5-10% deposit) have surged to a 17-year high, comprising nearly a fifth of the market, driven by first-time buyers. Newcastle Building Society is offering mortgages with deposits as low as £5,000. Longer mortgage terms are becoming increasingly common, including among older borrowers. Some companies offer interest rates starting at 5.05% and an application fee of £195.
News summary provided by Gemini AI.
Major lenders are starting to increase mortgage rates ahead of a Bank of England (BoE) interest rate decision. Markets believe rates will remain unchanged at 4% because of sticky inflation.
Meanwhile, the number of low-deposit mortgages on the UK market has reached its highest level in 17 years, according to new data from financial information site Moneyfacts. In September, there were 1,360 mortgage products available requiring deposits of just 5% or 10%, marking the largest selection since March 2008 when 1,532 products were on offer.
These low-deposit options now account for nearly a fifth (19%) of the overall homeowner mortgage market, Moneyfacts found. Such deals are typically sought by first-time buyers looking to step onto the property ladder but who struggle to save for larger deposits.
Also, in what could be a market first, Newcastle Building Society announced it will loan up to £350,000 for first-time buyers this week, with deposits as low as £5,000. However, the lender stipulates that buyers must fully fund their own deposit.
HSBC (HSBA.L) has a 4.04% rate for a five-year deal, higher than last week’s 3.9%. For those with a Premier Standard account with the lender, this rate is 4.01%.
