Five year fixed at 1.29% available only via an app!

I can't ignore the headline of the week, from Atom Bank (not related!), who have launched a market leading five year fixed rate at just 1.29%.  This is available to those with a 40% deposit and has just a £900 fee.  They have also launched an 80% loan to value (LTV) fix at 1.49% and a 90% LTV at 1.99%, both with a £900 fee and for five years.  APRCs will relate to individual circumstances and obviously terms and conditions apply!  What is for sure is that these are so good, they are in huge demand, have been covered by all the major consumer websites including Martin Lewis, etc and won't be around for long, so be quick!   Only a few brokers in West Sussex have access to this product...

Long term fixed rates won't be for everyone as you are tied in for the full five years and will have a redemption penalty to pay should you repay the mortgage early.  However, they tend to be portable and thus can be taken with you, subject to the lenders criteria, should you move house.

Atom Bank do a lot of their functionality via an app, including voice and face recognition.  Impressive hi-tech stuff indeed. 

Already, most people will start their home buying process via the Rightmoves and Zooplas of the world, but some commentators are also predicting that the whole home buying process will soon become a digital revolution.  With more effective use of technology cutting down the mortgage process, and many lenders now processing everything online, I can see how that can happen.

However, at the same time, I can also see many customers just wanting to speak to someone face to face.  Especially those who have not grown up with technology! Plus, as mortgage volumes are increasing, we will see more and more customers fall out of the 'technology only' bracket.  So explore all options and if the technology becomes to confusing, pick up the phone!

Even the pundits say to 'act fast' to secure a good rate!

There seems to be a lot of talk from various industry pundits regarding the end of the 'good rates' in the mortgage market.  Even Martin Lewis' money saving programme this week suggested that consumers should be quick and secure a competitive rate.

Remember, that fixed rate monies are derived by the money markets, whereas tracker rates follow the Bank of England base rate and lenders decide on their own standard variable rates.

With this in mind, personally, I can't see rates having a significant increase for some time yet.  You might see the odd shift here and there, but with over 11,000 mortgage products now in the market place, this is expected.  To back this up, many lenders fell short of targets last year and with a market that is expected to be similar in overall volume in 2017, compared to 2016,  I can only see competition becoming stronger to fight for the business.

Just in the last few days, we've seen Buckinghamshire Building Society launch a first time buyer mortgage at 95% loan to value (LTV), so just a 5% deposit required.  In addition, the rate is an attractive 3.24% and the product has no product fee and £250 cash back.  This lender also reviews cases manually, rather than a credit score.

Accord Mortgages is giving offset mortgage customers £1,000 when their home loan completes, for a limited time.

Virgin Money has launched new residential and buy-to-let fixed rate loans. The range includes a two year residential fixed rate up to 90% LTV at 2.84% for first time buyers. The loan has no product fee and £1,000 cash back.  Virgin has also introduced a five-year residential fixed rate up to 65% LTV now at 1.89%.  The loan has a £995 fee, £300 cash back for purchases, a free valuation and legal fees for remortgages.

And finally, Bank of Ireland for Intermediaries has increased its maximum loan size to £1.5m for Buy to Lets and increased its upper age limit for Residential customers to 75.

So in short, despite the negative press, no one knows what's going to happen this year and with economists pulling their hair out, you just have to think of number one.  You have no loyalty to stay with your current lender when others will offer better rates.  And only you can decide if you want the certainty of a long term fixed rate, or if you are happy to see what happens with a shorter term tracker rate.  As always, terms and conditions apply and, as Martin Lewis said, speak to a whole of market mortgage broker!