Lenders are increasingly willing to offer mortgages to those with only a 5 per cent deposit to put down, and there is also a wide choice of innovative deals available to those who are reliant on financial support from the ‘bank of mum and dad’.
Where next for interest rates?
Given current political and economic uncertainty, it is extremely difficult to predict when, or even in which direction, we will see interest rates move next.
The Bank of England has consistently suggested that rate rises are likely to continue, albeit at a gradual pace. However, if there is a disorderly Brexit, inflation could rise on the back of any further weakening in sterling.
Higher inflation could lead to the BoE increasing interest rates, but there is also potential for the BoE to decide that the economy needs additional support, which could actually result in a cut in the base rate.
Either way, borrowers are likely to continue to lock into fixed rate mortgages to protect themselves against any potential shocks, and to give peace of mind that they know where they stand at a time when everything else is so hard to predict.
David Hollingworth is associate director, communications at L&C Mortgages