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Making Sense of The UK’s Best Mortgage Deals

The property market is ever-evolving, and so are the financial tools that accompany it. Among these tools, mortgages stand at the forefront, particularly for those interested in new builds like the ones we build at Thomas Alexander Homes.

With the current state of UK mortgage rates, it’s a compelling time to consider diving into homeownership. Here, we present a few of the best mortgage deals currently available.

Two-Year Fixed Rate Mortgages.

A two-year fixed rate mortgage may be an optimal choice if you foresee stable income in the short term and are comfortable with the possibility of rates changing after two years. As an example, HSBC UK currently offers a 2 Year Fixed Fee Saver mortgage plan with an initial interest rate of a fixed 5.29%.

With the average two-year fixed rate standing at around 5.61%, this offer represents a competitive deal, presenting homeowners with the opportunity to make substantial savings in the initial years of their mortgage.

Five-Year Fixed Rate Mortgages.

For those looking for longer-term rate security, five-year fixed rate mortgages may be a better option.

Although the average five-year fixed rate in Britain stands at around 5.16%, there are better deals available that can beat this average. Have a look at The Times Money Mentor for more details: The Times Money Mentor.

Stepping Up Your Deposit.

It’s worth noting that higher deposit values can unlock even better interest rates, with the step from a 5% deposit to a 10% deposit granting you access to substantially lower-rate mortgage offers.

Although this might require more upfront savings from the prospective homeowner, it provides the advantage of potentially lower repayments and interest in the long term.

Regardless of whether you’re a first-time buyer or looking to add another home to your property portfolio, these mortgage plans delineate the vibrance and variety of opportunities today’s market presents.

At Thomas Alexander Homes, we advise prospective homeowners to be well-informed about market trends and explore all available options thoroughly before deciding on their mortgage plans.

It’s also crucial to remember that interest rates depend not only on the chosen mortgage type but also on your personal circumstances, such as your credit score, employment status and deposit amount. You should always seek professional advice before making significant financial decisions.

For more information on the pros and cons of two year versus five year fixed mortgages, visit: https://www.theguardian.com/money/2023/sep/22/uk-mortgageinterest-rates-tracker-two-year-or-five-year-fix