Sub-1% mortgage deals up by 400% since June, research shows

The choice of mortgage deals with rates below 1% has ballooned by 400% since June, according to a website.

In June, just 10 deals with rates below 1% were available, MoneySuperMarket found.

But by September, there were 50 mortgage products on the market with rates below 1% – of which 16 can be used by first-time buyers.

Back in April, MoneySuperMarket found no mortgage products available with rates below 1%.

With concerns about prices of goods rising generally, taking out a new mortgage deal on a lower rate could help some households to lower the cost of their regular payments, depending on individual circumstances.

Jo Thornhill, money expert at MoneySuperMarket, said: “Just six months ago, securing a mortgage rate of 1.5% to 2% would have been viewed as a real success but the past four months have seen borrowing get even cheaper.

“Mortgages haven’t been this cheap for many years and the great news is that it’s not just re-mortgagers with low loan to value (LTV) ratios that can benefit: there are some great deals available for first-time buyers and home movers too.”

She suggested people searching for a mortgage should shop around and consider repayments carefully to make sure they are affordable.

She added: “Try to build as big a deposit as possible as a large deposit can open the door to lower interest rate deals.”