UK borrowers in search of property development finance, for whatever reason, have been warned that leaving things too late could prove to be an expensive yet entirely avoidable error. Whether you are a first-time buyer, a homeowner looking to move, or a buy-to-let property investor in search of expanding your portfolio, secured borrowing products have never been lower on cost. However, the status quo is not expected to last much longer, with many economists warning that an inevitable hike in interest rates is definitely on the cards, as the historically low borrowing rates gradually start to subside to previous levels.
Nonetheless, if you are looking to take advantage of the present lull in interest charges then there is still time to act, provided you move quickly. Of course, the low interest rates that are available at present are quite possibly the only advantage of the recent economic downturn that the country has fallen victim to. With many banks and building societies offering personal loans and secured business products at an unprecedented low, many economists are predicting the situation simply cannot last. In fact, some high-street banks and other mainstream lenders have already begun to increase their interest rates, with many more confirming that they too will follow suit throughout the coming months.
The good news is that the overall picture is not all doom and gloom for those looking to secure funds, at least not for another few years, although rates are expected to climb steadily in the meantime. However, each year will see both residential and commercial borrowing products increase in cost considerably when compared to the previous year, until the early stages of the next decade when rates are expected to be at the same level as they were before the drop. According to the team at UK Property Finance, one of the country’s leading providers of intelligent, alternative finance solutions, the time to borrow is right now – particularly if you are looking to secure a long-term product or a fixed-interest deal that will last for a considerable amount of time.
The lowest rates of interest for mortgage borrowers were first seen in June 2016 – with some lenders offering rates of less than 1%. In fact, it was HSBC who set the bar with their historic 0.99% mortgage product, which was available to homeowners who could provide a deposit of 35% or more. This record low interest rate was then beaten by the Yorkshire Building Society with a borrowing rate of just 0.98%, which enabled first time buyers and home movers to secure the finance they needed to purchase their dream property at absolute minimal cost.
Of course, the likelihood of any of these deals being available for any considerable length of time was negligible and it was not long before these low borrowing rates were gradually retracted, along with competitive interest rate products from several other mainstream lenders. With this in mind, those looking to secure the most affordable products with the intention of saving money, both now and in the long run, are advised to act swiftly, regardless of whether they are looking for short-term finance in the form of a bridging loan, or a long-term secured product such as a mortgage or second charge borrowing product.
About UK Property Finance
A fully independent, authorised and FCA regulated broker, we can provide exclusive access to a wide range of secured finance products such as bridging loans that are quite simply unavailable through traditional lending channels such as those offered by high street banks and building societies. We prioritise customer service excellence; and aim to deliver the lowest borrowing rates and the most flexible options for your finance needs.
- Rental Market Sees Surge in Tenant Inquiries - May 2, 2024
- Rental Crisis: Less Than Half of Homes Ready - April 30, 2024
- Thinking Of Buying A Ground Floor Flat? Common Issues You Might Face - April 30, 2024
