Homebuyers in 2020 to benefit from falling mortgage rates

By Ian Creighton

The New Year is starting with some great news for homebuyers, home-movers, buy-to-let landlords and homeowners looking to remortgage, as mortgage loans have got cheaper across the majority of the market.

Last year already saw a great deal of competition and innovation among mortgage lenders, but mortgage rates are widely tipped to fall even further as a result of the poor World Economic Outlook, and a change to rules that means banks cannot put their cash towards their investment banking arm. That has resulted in a lot of banks increasing the amount of money they want to lend in residential mortgages, making the market very competitive and reducing interest rates across a wide range of products.

With interest rates down to as low as one or two percent on some mortgage products, home movers stand to make substantial savings by remortgaging to a new product. It is of course essential to consider any early redemption penalties and up front costs of new products before making the switch.

Homebuyers in particular have a great range of mortgage products available to them and there is speculation that lending criteria could change in 2020, including a relaxation on affordability rules. Landlords and investors with a number of properties with different mortgages will also be looking at the competitive mortgage market as an opportunity to evaluate their portfolio.

If you are buying a house in Northern Ireland, or remortgaging a property, contact one of the property conveyancing experts at Wilson Nesbitt solicitors for information and advice on the legal conveyancing process by clicking here.