Mortgage Market Update
09.02.16The mortgage market has kicked off the year in some style, with a plethora of new products and lenders improving their offerings slightly which is good news for buyers who now have more choice than they have had in many a year.
With the Bank of England now admitting that there will be no change in interest rates in the near future it looks like borrowers are going to enjoy another few months yet of these low products.
In fact, borrowers can now get a 2 year variable tracker rates from just 1.29% (5% APR), with 2 year fixed rates available at just 1.49% (3.6% APR) and a 5 year fix from a mere 2.25% (3.4% APR).
This week we have also seen the release of the latest Government Scheme Help To Buy London, which gives borrowers up to a 40% loan on a New build Property up to £600,000 in 32 London Boroughs.
Buyers must have a 5% deposit themselves, but with the 40% government loan this means they only need a mortgage of 55% Loan To Value, making things that much more affordable.
10 lenders so far are offering products Aldermore, Bank of Scotland, Barclays, Halifax, Leeds, Lloyds, Nationwide, RBS, Precise & Teachers.
Coreco were seen on BBC One News this week talking about this very subject and on the face of it, it is a good scheme that not only gives builders confidence to build more, but will help a good number of borrowers struggling with the deposit to finally buy.
Lenders are also falling over themselves to take advantage of an expected hike in Buy To Let Lending this quarter given the increase in Stamp Duty on second properties from April, with half a dozen lenders already reducing their rates on these products.
Buy To Let rates are still available from an astonishing 1.73% (4.2% APR).
Given the further upcoming changes lenders have also started to offer the same rates for landlords looking to borrow in a Ltd Company name which is a big move.
Given the overall state of the market we really do think this year is going to be an excellent year for those buying a home to take advantage of the prevailing low rate conditions and improved choice.
Written by Andrew Montlake
Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994. As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company. As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking. Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.
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