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Kay Phillips Associates

Contact: Kay Phillips
Address: 47 Limmer Lane , Bognor Regis , PO22 7HD
T: 01243 885246 | M: 07969484265
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KPA specialises in bespoke multi-channel business development. Dedicated to delivering results, your success is our success. Whatever the size of your…

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As rates hit new record low levels and with lender competition set to grow even fiercer, there has never been a better time to get a mortgage. So, how do you get the best deal? Ask a qualified mortgage adviser.

At the end of Q3 2013, the news was awash with predictions of a mortgage price war and falling mortgage rates. People were encouraged to make hay while the sun shined and grab a good deal before the market steadied and rates rose again in early 2015. Rates duly dropped during the last quarter of 2014, but as the end of Q1 2015 comes into view, the price war shows little sign of ceasing and rates continue to fall.

In November last year, there was excitement around five-year fixed rates hitting a sub 3.5% level again. Fast forward five months, and five-year rates are heading towards 2%, while two-year fixed rates are heading towards 1%. Recently, the Yorkshire Building Society launched a fixed two-year deal at 1.18%, a move that came shortly after HSBC’s announcement that it was introducing a two-year deal at 1.19%.

Your home may be repossessed if you do not keep up repayments on your mortgage

Thanks to the prospect of an interest base rate rise receding and lenders continuing to slug it out for customers and market share, there are a growing number of record-low mortgage rate deals available on the market. This is why the value of qualified mortgage advice has never been so high. It’s a question of being able to see the wood from the trees and finding the mortgage deal that suits you best. For example, while the likes of HSBC’s and the Yorkshire Building Society’s deals are grabbing the headlines, these kinds of rates are often only available with a big deposit or involve the payment of a large, non-refundable fee. OK if you have the capital, not so much if your budget is smaller.

So, how long will this period last? Six months is a common prediction but there is suggestion that it could go on for longer, especially as Tesco has indicated that it will expand its mortgage business in the short term to include the availability of property loans through independent brokers for the first time. Tesco has significant market presence and financial clout and it will be keen to press home its advantages as it looks to steady the ship after a serious wobble in its performance. Hence, the market could see another big bump in competition, maintaining the downward pressure on rates and further underlining the role of qualified mortgage advice.

However, it would be wise not to depend on the trend lasting too long and rates falling even further as lenders won’t want to see their capital strength weakened and will have to comply with new Bank of England rules on the leverage ratio.

To find out more about Independent Financial Solutions’ services, contact me on 02392 271251 or

Please note:

Our initial advice is always free and we are usually paid a procuration fee from the selected lender for placing business with them. The amount paid will depend on the lender and the loan amount, and will be detailed in all illustrations provided. 

In certain circumstances we may also charge a fee for the processing and administration of a mortgage application. However, we will always obtain your agreement to this prior to undertaking any work.