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Monday Mortgage Update

12.11.18

Last week I was delighted to represent Coreco at the launch of the new Property Radio, airing at weekends. This shows that there is such a demand and interest in all things property that there could be a radio station dedicated to it. It was a lively chat about property, the potential Brexit effect, (both positive and negative), as well as the state of the mortgage market.

Coreco were also in the Times this weekend talking about lenders and the incentives they offer. This follows the news that Halifax are offering borrowers the chance to enter a prize draw to win up to £300,000 off their mortgage.

Over the year’s lenders have offered all kinds of incentives to try to entice customers, from prize draws to win a car, iPads or pay off some of their mortgage to more mundane offerings such as cashbacks and freebies.

Whilst these all look good on the face of it, borrowers need to look behind the gimmicks at the actual rates and fees of the product itself. It could well be that there are cheaper and more suitable products available which, although just dull, simple mortgage products, could actually end up saving borrowers’ real cash each month.

Personally, I would much rather see lenders concentrate on keeping the fees and interest rates down other than offering marketing ploys that could convince a borrower to make the wrong choice.

Especially as these days there are still some excellent rates on offer. For standard residential mortgages, borrowers can obtain 2-year fixes at 1.39%, (4.68% APRC) and 5-year fixes from 1.79%, (3.60% APRC) whilst variable tracker rates are around from 0.99%, (4.86% APRC).

Those looking at Buy-To-Let can still obtain products from just 1.39%, (4.71% APRC) for a 2-year fixed or 5-year fixes are available from 1.99% (3.62% APRC).

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