If you believe everything you read in the papers you would be forgiven for thinking that there is not much point in applying for a mortgage at the moment because it is all too difficult. Banks aren’t lending and those that are want blood samples and a charge over your children in order to even think about giving you a few quid.
The good news is that this is actually a myth. There is no mortgage shortage and lenders actually have begun to compete for your business. How else can you explain the new trend of 7 day sales from certain lenders who are offering tracker rates from as low as just 1.99%, (4.0% APR)?
Also posted in Best Fixed Rates, Best Mortgage Rates, Coreco, Independent Mortgage Advice, Interest Only Mortgages, Large Mortgage Loans, Mortgage Brokers in London, Mortgage Market | Tagged Best Mortgage Rates, Coreco, Fixed Rates, Mortgage Broker in London, Mortgage Lending, Mortgage Market, Mortgage Shortage, Remortgage |
As the Bank of England Monetary Policy Committee, (MPC) sat and argued their very different views around potential interest rate changes, many in the mortgage industry pondered secretly, some publically, that quite frankly an early rate rise will be good for business.
After all, nothing is better than panicking people into action than a short, sharp shock.
The truth is that it might not be quite that simple and could provide as many problems as it solves. For many consumers, a sudden half point rise could prove to be the tipping point, especially if it is followed by another one or two increases later on in the year as predicted.
Also posted in Bank Base Rate, Coreco, Independent Mortgage Advice, Inflation, Large Mortgage Loans, Mortgage Brokers in London | Tagged Bank of England Base Rate, Best Mortgage Rates, Coreco, Large Mortgage Loans, Mortgage Broker in London, Mortgage Rates |
For many people who are coming to the end of their fixed or tracker rate periods the mortgage landscape may seem to have changed beyond all recognition since the original loan was first taken out. For a good number, this will indeed be the case.
Quite apart from a tightening of criteria across the board, the scarcity of competitive products above 85% Loan-To-Value and headlines stating that mortgages are becoming scarce, you may find that the lender you took you mortgage with is now part of a different lender entirely with a whole new rulebook.
Recently we have heard talk, and indeed seen evidence, that some lenders are starting to target the remortgage markets once more, perhaps a little earlier than many would have expected.
This is of course good news for mortgage brokers and borrowers alike, after all more choice and more competition is what is badly needed.
The issues for many is whether they should fix now or enjoy a low variable rate tracker.
There has been so much contradictory economic data and press speculation in recent months, culminating in recent data showing that the UK economy grew more than expected in the last quarter, leading to renewed claims that interest rates may rise quicker than many first expected.
Apparently, according to some sources, remortgaging is now back in vogue and enjoying somewhat of a renaissance as it is officially now the case that remortgage products are cheaper than most lenders Standard Variable Rates.
Some of us have already been talking about this since the start of the year, and it is nice to be backed up by some weighty reports. Moneysupermarket.com, for example, have stated that even when taking the new mortgage product arrangement fees into account the “best” fixed rate and the “best” tracker product over 2 years will beat the majority of lenders SVR’s.
Andrew Montlake, Director and Spokesperson for Coreco, gives his honest and forthright views on the mortgage market, economy and all things property related. Monty was voted "Mortgage Personality of the year 2008" and is the current holder of the British Mortgage Awards "Best Press Spokesperson" title. Expect expert analysis, delivered in a down to earth style with a side helping of exuberance.
