With the Stamp Duty deadline (the first part) now a distant memory, it will be interesting to see what happens next, but there is every indication that the market will continue to be busy for the remainder of the year as potential buyers who deliberately waited for the end of the madness return to the market.
Coreco was quoted in the press last week after a report from Aldermore Bank found that only 1 in 5 first-time buyers were able to secure a mortgage on their first attempt! This is an astonishing fact with 38% rejected for a mortgage at least once.
Checking and improving your credit score, getting documentation in order and making use of a broker were three of the tips given to buyers to improve their chances and ensure a smooth transaction. That is where Coreco comes in!
Meanwhile, lenders continue to offer mouth-watering rates and there are now no less than eight lenders with products at 1% or less with TSB reducing their 2-year fix to a mere 0.94%.
High LTV rates are also reducing albeit at a slower pace, though one I suspect will begin to speed up over the coming months. Santander and Virgin Money are introducing £1,000 cashbacks on higher LTV products as well as reducing rates which always goes down well. Metro Bank have also introduced new 2- and 3-year products at 95% LTV.
HSBC has changed their salary threshold criteria for applications with an LTV less than 85% from £50,000 to £30,000, with more customers now eligible for a mortgage at 4.75 x income.
Lenders are very much open to lending and hopefully, service will get better from them now too.
Have a great week.
In terms of mortgage rates, for standard residential mortgages, borrowers can obtain 2-year fixes at 0.94% (3.20% APRC) and 5-year fixes from 1.12%, (2.80% APRC) whilst variable tracker rates are around from 0.98%, (3.20% APRC).
Those looking at Buy-To-Let can now obtain products from 1.19%, (4.40% APRC) for a 2-year fixed or 5-year fix are available from 1.69% (3.70% APRC).