From trackers to 10 year fixes: Mortgage war continues to spell record low rates

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 8 October 2021

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

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Summary

With inflation on the rise, homeowners nearing the end of their mortgage deal could be tempted to lock in for longer – especially with murmurs of a base rate rise.

It comes as rates continue to fall, even on tracker deals. What are the pros and cons on a two, five and even a 10 year fix, and does the flexibility of a tracker mean it could be a worthy option to consider?

Lee Boyce, Helen Crane and Georgie Frost discuss what those remortgaging and home buyers need to consider when getting a new home loan.

And landlords haven't been left behind in the mortgage battle either. There is now a sub-1 per cent buy-to-let mortgage rate – and sticking with the property theme, yet another huge monthly bump for prices.

Elsewhere, should you sell old Premium Bonds to buy a new set for 'better luck' and just how much have lockdown savers poured into the NS&I product?

Lastly, how about a career change as an… HGV driver? We look at what salaries are on offer and how to train as a lorry driver.

Transcript

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0:00.0	Welcome to This Is Money podcast. I'm Georgie Frost and alongside me and assistant editor Lee Boyce is assistant personal finance editor Helen Crane.
0:07.9	And coming up with inflation on the rise, homeowners nearing the end of their mortgage deals are being urged to lock in.
0:14.4	So do you go for two, five or even ten years? But then again, a track is so bad?
0:20.2	Meanwhile, the buy-to-let Bonanza. Landlords can now
0:23.0	bag a sub-1% mortgage rate, but beware the fees. House prices are rising at the fastest
0:28.8	rate since the housing boom of 2007, with the race for space also hitting rural renters.
0:35.2	Also today, should I sell my old premium bonds and buy a new set?
0:39.3	Lockdown savers pile into fairly easy access and fancy a career change. How about becoming
0:44.9	an HGV driver? Don't forget, you stay up to date with all the latest breaking money news,
0:49.3	just go to this ismoney.com.com.uk or download the app. But first, the governor of the Bank of England has been
0:55.6	warning that interest rates could be raised if higher inflation sticks around. The result is that
1:01.4	mortgages could get more expensive. With a squeeze already well and truly on households at the
1:06.8	moment homeowners are being urged to lock into a new fixed rate loan and protect their finances.
1:12.5	So do you opt for a two, a five or even a 10 year deal? Helen, with mortgage rates so low at the
1:22.3	moment, honestly, it feels like every day there's a new lower rate coming out. Is this fear really realistic?
1:30.1	Yeah, so as you say, mortgage rates are incredibly low at the moment, where we're seeing
1:35.0	things as low as 0.78%, which are historic lows.
1:42.2	That's been going on for some time. since the end of the lockdowns last summer
1:47.1	mortgage rates have gradually been coming down and down and down. I think we are probably hitting
1:52.3	a floor with how low they will go. But aside from that, as you say, it all depends really on what happens to the base rate. So if that rises,
2:04.3	which Andrew Bailey has said, it probably will and possibly before the end of the year, then
2:09.3	mortgage rates will start to go up. So I think if you're coming to the end of a fixed mortgage
	...

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