22 June 2021
The advent of several mortgages with interest rates below 1% has caused a stir recently. We take a look at this small but tempting range of deals to find out whether they are really as good as they sound.
Thanks to the Bank of England dropping its base rate to an all-time low of 0.1%, mortgage rates have also been heading southwards over the last year.
Rewind several months and people were remortgaging onto deals which may have seemed obscenely low at 1.2% or 1.3%. But more recently lenders have been getting even more competitive to the extent we are now seeing mortgages with rates of below 1%.
These deals – which those in the business have coined ‘sub-1%’ are coming in at 0.99% or even 0.95% and look particularly attractive at a time when, due to Covid-19, many households are looking to make savings.
But who can benefit from these deals and what – if anything – is the catch?