Mortgage Deals

Best Mortgage Deals this month
 Recent reports have shown that the average fixed and tracker mortgage rates have fallen to their lowest level since 1988. Moneyfacts.co.uk have reported that the average two year fixed rate is now 4.32% and the  average five year fixed rate mortgage is 5.29%. Tracker mortgage rates  have also fallen; a 2 year tracker mortgage rate now averages at 3.58%.
Previously it was just those with a high deposit that could benefit  from reductions in mortgage rates but now discounts are being applied  across all Loan to Value (LTV) tiers. Michelle Slade, spokeswoman for Moneyfacts.co.uk explains; “While rates may still fall slightly it is likely that some  lenders will instead opt to make existing competitive deals available to  the lower LTV bands.”
 Where can I find these mortgage deals?
 We've looked at all the current mortgage deals available and independently picked the ones we think offer the best deals:
Best long term fixed rate
Nationwide 5-year fixed rate mortgage. This is the current market leading five year fixed rate mortgage, it  offers a fixed rate of 3.89% with a £900 mortgage arrangement fee (£300  paid back for First Time Buyers). You will need at least a 30% deposit  to benefit from this deal.
Best 2-year fixed rate
Woolwich 2-year fixed rate mortgage This mortgage has a high mortgage arrangement fee at £1,999 for a 2.69%  rate. They do offer a lower mortgage arrangement fee with a higher rate  of interest which may suit you better depending on your  circumstances. This mortgage rate is for those with a 30% deposit.
Best tracker mortgage rate
Woolwich 2-year tracker mortgage .  This deal offers a 2.29% initial rate until 31/08/2013, rising to a  rate of around 3.49% subsequently. To receive this rate you will need a  30% deposit and pay a £999 mortgage arrangement fee.
First Direct 2-year tracker mortgage If you can stretch to a 35% deposit then you can benefit from First  Direct’s 1.99% initial rate (2 years) and a subsequent rate of 3.69%.
The best offer depends on your circumstances, how much you are borrowing and over what period of time.
Best low deposit mortgage rate
HSBC have just launched a  range of mortgages for people with a 10% deposit. They offer a tracker  mortgage at 4.19% above base rate or a 2 year fixed rate of 4.99% both  of which come with a £599 mortgage arrangement fee.
Best first time buyer mortgage rate
Yorkshire Building Society- Are offering a fixed rate of 5.39% until 30th Sept 2013 with a 10% deposit. In addition, they are offering a number  of incentives for First Time Buyers including no arrangement fee, legal  fees paid and £500 cashback.
These fees/rates are all correct at time of publish, please check with individual providers for more details.

GOOD TIME TO BUY!

Renting a home in Britain is currently 9.7% more expensive than owning on average. And it is cheaper to buy instead of rent in four in five of the 50 largest towns and cities across the country, according to the latest research from leading property website Zoopla.co.uk.
The research looks at the current asking prices and rents of two-bedroom flats around the country and assumes interest-only mortgage payments of 5% p.a. to provide a comparison to the cost of renting.
The range of results by location provides some very interesting insight into where it is best to rent instead of buy and vice versa. Milton Keynes tops the list of places where renting is the far less attractive option with average rents exceeding the cost of servicing a mortgage by a staggering 43%, leaving renters there on average £2,964 per year worse off compared to owners. At the other end of the scale, it is currently much more cost effective to rent in Poole than buy with renting 27% cheaper and the average tenant better off by £3,240 per year by renting instead of buying.
Even in London, which has by far the highest property prices in the country and where the average 2 bedroom flat is going for £431,366, buying is still 16% more cost-effective than renting. With average rents at £2,137 per month in the capital versus an average cost of a 5% interest-only mortgage at £1,797 per month, renters pay an extra £4,080 annually compared to owners.
Nicholas Leeming, business development director of Zoopla.co.uk, commented: "The relative cost of renting as opposed to buying has increased over the past 12 months as rents have risen and house prices and interest rates have remained flat. Almost 750,000 would-be first-time buyers have reluctantly ended up as renters over the past 3 years as a result of being unable to get a mortgage. With current house prices and interest rates where they are and with rents on the rise, for those who can get a mortgage, there may never have been a better time to buy."