Generally, conflict is not a good thing but when Coventry estate agents read about a mortgage war, there is a reason to cheer.
Confidence-boosting house price stability in Coventry has now been joined by some of the best mortgage deals available for over a decade. Lenders are now competing for business by slashing rates attached to home loans, with every week bringing a wave of more affordable mortgage deals.
Home loan rates are at record lows, and some products on offer are at 1% or less, for the right borrowers, of course. What do the low rates mean for buyers of property for sale in Coventry? It could mean lower monthly repayments for those taking out new loans and the ability to remortgage and move up the property ladder, with less of a financial pinch, for existing homeowners.
Carl Allsopp - a founding partner at Coventry estate agents Allsopp and Allsopp - says the drastic lowering of mortgage rates should stimulate the city's property market: "When buying a new property, one of the biggest concerns is how much take-home pay will be needed for monthly mortgage repayments but with these new low rates, the proportion of income being spent on repayments has dropped drastically. This is especially good news for those worried about the lack of wage rises."
Carl also points out that lower mortgage rates can be beneficial for those looking to trade up to a more expensive property: "Many of our clients are looking to swap a city centre flat for a larger suburban family home but the leap between mortgage repayments has sometimes stood in the way. We're encouraging people to speak with an independent financial advisor or lender about mortgage products that could facilitate a move to a new home without a massive hike in monthly repayments. For many home movers, their current mortgage no longer offers the cheapest rate so moving home and switching to a new deal at the same time can make trading up more affordable."
So how long will low mortgage rates stick around? Mortgage rates are linked in with interest rates and 'swap rates' - the cost at which banks borrow money from each other. Currently, swap rates and interest rates are at very low levels - at a record low of 0.5% where the interest rate is concerned. As a rule of thumb, mortgage rates tend to creep up in line with interest rates but the Bank of England has suggested that interest rates won't rise before May 2015's general election.
Carl Allsopp concludes: "There's a real window of opportunity for Coventry home movers to gain some financial security at the same time as moving home. Those looking at flats and houses for sale in Coventry can access to some spectacular fixed-rate mortgage deals, as well as some rock-bottom tracker and discounted rates. As always, the key to unlocking the best rates is a healthy deposit but there are many attractive deals for those with smaller down payments of 5% and 10%."
If you would like details on property for sale in Coventry and in the city's suburbs, search Allsopp & Allsopp's listings online today.
Subscribe to receive news and updates
Be the first to get the most market news, videos and the inside scoop on property in UK