01.04.10 by Andrew Montlake
Where has Quarter 1 Gone?
In a blitz of snow, fervent activity and political ups and downs the first quarter of 2010 is already behind us. This next quarter is set to be dominated by the election campaign, (I reckon Mr Brown may pay a visit to the Queen right after the Easter break), and speculation over Rooney’s injured ankle, (let’s face it, that was always going to happen!).
Having watched more than a few discussions-descending-in-to-chaotic-arguments on Newsnight, it is evident that the ensuing campaign is not going to be a pretty one.
The mortgage world is up in arms over the latest news that the Post Office will be offering 90% mortgages in a bid to encourage people into the Post Office. Not only does this smack of a little desperation to support the post office a few years too late, but the main issue for brokers is that it is aimed at first-time buyers on lower incomes, on a non-advised basis.
What could possibly go wrong?
Why the biggest debt you will ever take is available direct, whether through the Post Office or on the telephone, without giving any advice is beyond me. Many people who go direct to a lender do not even realise that they are not getting advice.
The sooner advice is given properly and standardised across the industry the better. We will then see complaint levels falling, bad practitioners isolated and forced out of the industry and clients generally getting an all round better deal.
In terms of mortgage products, the good news is that competition is still increasing slowly, which therefore means new products continue to appear regularly.
Fixed rates especially have improved, with Accord amongst others offering some excellent products. You can now obtain 3 year fixed rates at 3.84% (5.7% APR), or 5 year fixed at a hugely tempting 4.44%, (5.7% APR).
Products like this are helping the remortgage market to start moving again as many people begin to feel like they have “won” by sitting on a lenders Standard Variable Rate, (SVR), up until now and do not want to take any further risks.
Meanwhile, house prices rose by 0.7% in March according to Nationwide which makes them 9% higher than a year ago. Together with the last economic growth figures being revised yet again, now up to 0.4% growth in the last quarter of 2009 which was initially predicted, there are some causes for optimism.
Monty’s Mortgage Blog
11.01.12
2012: What does the future hold for the mortgage market?
In my mind 2012 was always meant to be the year when everything began to improve, after all we have the Olympics and the feel good factor from that together with a good Euro Championships would surely propel us on to bigger and better things?
Coreco
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