What does the UK's lowest ever mortgage rate mean for homebuyers?

The Yorkshire Building Society has recently launched the lowest mortgage rate on record at 0.89%. But does this mean that now is the ideal time to buy?Lower interest rates have been launched by lenders looking for custom as property sales remain relatively static.The lower rates have been reported to raise hopes for first-time buyers with more options available for buyers with a deposit of 10%. This includes:

• A 2.19% rate with a £999 fee; and
• A 2.59% rate with no fee.

Good news for first time buyers?

Research has shown that saving for a 15% deposit continues to take the average first time buyer a number of years.However more options have been made available, with smaller deposits becoming more common in recent years.This means that the rates charged on 95% and 90% loan to value mortgage deals are now moving closer to those charged on 85% loan to value mortgages.This means that buyers with smaller deposits could have access to more favourable rates than they previously could.

Read the small print on any mortgage deals

As with anything you buy, it is vital that you are aware of all of the costs involved in your mortgage rate and house purchase.Although the headline figure of some mortgage deals may look great, you could find extra costs when it comes to the small print. Some important questions you should ask include:

• Is there a product fee with the mortgage?
• Will the rates automatically change after a few years?
• Is the mortgage a fixed or variable rate?

Don't forget to factor in all the costs

When saving for your first home, it can be easy to become fixated on reaching the deposit you think you will need.However, you should aim to factor in other costs as early in the process as possible. This will include:

• Legal fees
• Surveys
• Stamp duty for homes worth more than £125,000

Being aware of these costs will give you a clear idea of the amount you need to save and avoid any surprises later down the road.

Speak to the residential conveyancing experts at Farnworth Rose

By choosing Farnworth Rose, you will have a dedicated solicitor on your side to guide you through the conveyancing process, keeping you up to date every step of the way. You can read more about how our specialist conveyancers can help you here.Our specialist solicitors will provide you with a clear, fixed fee conveyancing quote to help you budget for your move.If you'd like to talk to one of our experts about your move, call us on 01282 695 400.You can even get your conveyancing quote online by clicking the button below and completing a few simple details.