Mortgage Market In Rude Health
10th June 2014
This week no doubt there will be more talk about the World Cup than anything else, as the focus shifts effortlessly from house prices to football.
Ignoring the guff and bluster in the press at the moment, after all the average economist has an appalling record of predicting anything correctly over the past few years, the mortgage market is in surprisingly fine fettle at the moment and, much like the England team, is anchored by a couple of old stalwarts and flanked by some exciting new talent.
OK maybe that is pushing the analogy a touch too far, but nevertheless it works.
There are more lenders and products available than there have been since the credit crunch and despite what you read, lenders are keen to lend. The Mortgage Market Review has landed and is not the end of the world the usual doom-mongers predicted, but has levelled the playing field between the direct branch lenders and mortgage brokers, ensuring that everyone gets proper advice.
In fact, it has proved to be better for brokers as direct to market lenders just do not have the fully trained man-power to meet the demand and offer appointments quickly, something brokers are used to doing. We have heard stories of very long processes in branches with interviews between 3 and 6 hours!
It has been interesting to see that despite all the talk of rate rises, 2 year fixes have stayed pretty close to 2% and 5 year fixes are still just over the 3% level, good in any market.
Love or hate Help-To-Buy, but it has helped to improve sentiment and given lenders the comfort to launch more products available at 90% and 95% LTV giving buyers some real choice once more, all at very decent rates.
The Buy To Let market is thriving with more lenders falling over themselves to provide ever more competitive products as they see this as a sector of growing importance and remortgages are poised to make a dramatic last 20 minutes impact this year after being benched for a while as we get closer to rate rises.
With house prices looking like they may have started to level, a bit more supply on the market, the sun starting to shine and England look strangely relaxed going into the World Cup it is a time to reflect on the positives.
Keep smiling, it is going to be a good summer!
This is Bow, he’s a plucky little Boston Terrier and knows a thing about mortgage applications. His owner, Patrick, is one of our clients and Bow here helps with his paperwork. If there’s anything you need to know about mortgage applications or the paperwork entailed then check out our advice hub – it has everything you need!View the mortgage guides
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", "Best Press Spokesperson" in 2011 and is the current holder of the British Mortgage Awards “Best Marketeer” title. Expect expert analysis, delivered in a down to earth style with a side helping of exuberance.