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Monday Mortgage Market Update

05.03.18

There will be a lot of focus on the Governments Help To Buy Scheme in the coming weeks as the first lot of borrowers are due to start paying the fees on the loan part for the first time. Although they start off at just 1.75%, this does increase each year and if compounded with interest rate rises this could be more of a stretch than some people thought.

Meanwhile the Government are preparing to tell House Builders that they must not delay building more homes and those that have been slow and sitting on land may be refused planning permission in future. It will be interesting to see how this plays out, as developers tell us there is nothing they can build on that they are not doing so. Let the battle commence!

Rate wise it is all much of a muchness really with some lenders cutting product rates to remain competitive whilst others have put their rates up further as the cost of funds has continued to rise.

This adds more confusion to consumers over where the best products really lay and keeping up to date with the almost hourly changes is a full-time job in itself. There are still some exceptional deals around.

What is also refreshing is the amount of activity in the Specialist Lending Market, whether this is lending to self-employed, older borrowers or those looking for Second Charges, Bridging or Development Finance. Specialist mortgage lenders, most of whom only go through brokers, have some really good offerings in this arena at present and there is no need for any borrower to feel that they have no options.

At present, 2-year fixes are available at 1.24%, (3.83% APRC) and 5-year fixes from 1.71%, (3.16% APRC) whilst variable tracker rates are around from 1.24%, (3.57% APRC).

Those looking at a Buy-To-Let can still obtain products from just 1.39%, (4.47% APRC) for a 2-year fix.

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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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