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Interest Only & Service

20.02.12

A few things have come up in the past week or so that have not necessarily helped those looking to get a mortgage.

First of all Lloyds Banking Group have followed the lead of Santander and changed their interest only criteria which means that many more buyers will have to look at a repayment mortgage. As mentioned last week however this is not the end of the world and, especially because of the low rates still available, when a repayment mortgage is compared to the cost of renting in most cases it still works out the more attractive option.

Secondly, those lenders that are doing good business with the best rates are starting to creak at the seams in terms of service. We have seen some delays from normally speedy lenders due to nothing more than having too much business to be able to effectively process quickly.

Whilst this does sound remarkable when there is still a low volume of transactions compared to the past, and especially when the press are in correctly saying that there are no mortgages around, this shows that demand is indeed there and seems to be growing each week.

With high competition for good properties and a quick valuation essential, it therefore means that applicants need to look even closer at the lenders current service levels rather than just following the cheapest rate. The lowest payment may be great, but not if the house of their dreams has already been sold to someone else.

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Andrew Montlake

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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