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Monty’s market update

18.07.21

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.

Best Mortgage Rates

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).

 

One response to “Monty’s market update”

  1. Giles Tatton-Brown says:

    I read the above with interest and surprise!
    I have a Buy to let mortgage from the above named Aldermore. I fixed for 5 years till 2021 and asked for a new fix for a further 5 years. As I live in France, retired and 74, they said No but were happy to continue on the flexible rate……now about 8%. The loan I requested was for a W14 flat, value £450K, for £160K. Pretty modest?
    Suggestions for an alternative please?
    Thank you
    Giles Tatton-Brown.
    Hamlet TB Ltd.

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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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