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Best Interest Rates
Currently, we are certainly seeing some of the best interest rates ever seen in the history of motgage lending. Back in 1975 there was around 5,000 different interest rates available in the UK mortgage market and just before the credit crunch 4 year ago there were over 18,000 different interest rates available. Four years on from the market meltdown we now have around 4,054 different interest rates available to borrowers. This means we have less mortgage rates today than we had 36 years ago when the mortgage market was much smaller.

Even though we have some of the best interest rates around in many decades it has become harder to gain access to money for a mortgage. First-time buyers are struggling to find ten to fifteen percent deposits just to by their first home and the average age of a first-time buyer is 35 years.

The best interest rates today are for borrowers that have more than 25% equity in their properties, no adverse credit history and a permanent full-time job. Haven't times changed from four years ago?

Best Interest Rates Are For borrowers

At this time in the UK you can no longer borrow more than 95% of the value of the property. To obtain a 95% mortgage you will need to have the cleanest credit record and the mortgage lender will not lend any more than 4.5 times your annual income. Four years ago it was possible to borrow up to 125% and obtain finance for your mortgage based on up to seven times your annual income. Today this is impossible as the lending criteria has changed and the mortgage lenders only want to lend to borrowers that present them with no risk.

Sub-prime Lenders Never offered Best Interest Rates

Four years ago there was approximately 35 lenders for the sub-prime mortgage market, whereas today there are actually only two lenders left. Some of the original sub-prime lenders have left the country while others have stopped lending in this market.. What difference a year can make!

Interest rates can only go up from where they are now and trying to find any great rates four years on from the start of the recession is getting more and more difficult. The lenders are very much in control and the only mortgage borrowers that are finding exceptional rates are home-owners with over twenty five percent equity in their properties and no adverse credit. Anyone with smaller equity in their properties have found it difficult to find good rates and sometimes even finding a mortgage is very difficult.