What is the current interest rate on a mortgage?

There are lots of interest rates offered by lenders and selecting the right one for you can be a difficult task, especially if you try and do this yourself. So, what is the current interest rate on a mortgage?

Normally rates are based on the Loan to Value required, which is how much you need to borrow as a percentage of the purchase price, and how long you would like this rate to last for (2, 3, 5 years etc). 

Interest rates generally fall into one of two categories, Fixed or Tracker.

A Tracker rate is based on a margin over the Bank of England base rate and will move up and down to stay in line with the base rate if/when it changes.  If you are someone that takes a keen interest in the economy and believe rates will come down, then a tracker could be the right option for you.  They often have limited or zero early repayment charges, so they can also provide additional flexibility if you are likely to repay or make a sizeable overpayment to the mortgage early.

A Fixed rate is priced for the duration of the fixed period and ensures that there is no changes in your monthly payments.  This is often the right choice for those on a tight budget, or of course, do not want to run the risk of the monthly payment changing over the next few years.  They are, however, a lot more flexible nowadays and most will allow an overpayment to around 10-20% of the balance each year, without any charges being applied.

Either way, your mortgage adviser will confirm what is the current interest rate on a mortgage available to you and base their recommendations on your specific circumstances. They have access to the right tools and industry recognised qualifications to, source and apply on your behalf to the lender.

Hopefully we have answered your question what is the current interest rates on a mortgage right now, one of our team will be able to give you an answer specific to your circumstance’s contact them today to find out more.