Coreco have been very busy commenting in the National Press over the past couple of weeks talking about a range of issues that affect the mortgage market.
Apart from GDPR, which I am sure everyone is pretty sick of hearing about, we spoke to The Guardian & The Daily Mail about Later Life Lending, with a large increase in the number of people over the age of 55 looking to borrow. This is a market that is really starting to open up now with the likes of Aldermore Bank for example, now offering a mortgage to the ripe old age of 99. Family Building Society will now lend up to age 95 and there’s now a raft of options for later life borrowers.
We also spoke to The Daily Mail about the welcome increase in the number of lenders offering mortgages for those with a smaller deposit. This is great for First Time Buyers, but as we told them “The big difference in lenders is around fees, some will offer free valuations or cash backs towards legal fees, and perhaps more importantly service standards.
“Sometimes buyers need to move quickly in a competitive market to secure the home of their dreams and getting a slightly cheaper rate is pointless if by the time the mortgage offer is received someone else has snapped up the property.”
Meanwhile it was interesting to hear that despite the fact the Bank of England yet again left interest rates on hold after commentators were at one stage 90% sure it would increase, although this did decrease to just 10% after the latest set of economic data, Governor Mark Carney is still warning people to prepare for rate rises.
The markets now expect up to three rises over the next 3 years, but only by 0.25% which would take rates to 1.25% by early 2021. We shall see!
In other news, Gross Mortgage Lending in the first quarter of 2018 was £61.1 billion, up 3.4% from £59 billion in the first quarter of 2017. Of this, £5.1bn of new lending was to first-time buyers, up 2% year-on-year. The average FTB is 30 with gross household income of £42,000.
As far as mortgage rates are concerned, 2-year fixes are available at 1.39%, (3.58% APRC) and 5-year fixes from 1.83%, (3.72% APRC) whilst variable discounted rates are around from 0.97%, (4.40% APRC).
Those looking at a Buy-To-Let can still obtain products from just 1.37%, (4.43% APRC) for a 2-year fix.