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Mortgage Market Update


Welcome back to another week of shiny, happy fun in the mortgage and property market.

The focus and word of the week is “Positivity” so let’s turn those frowns upside down!

The good news is that lenders are starting to come back, and we hope there is some more good news to come. HSBC as an example have been terrific in not just supporting advisers and their clients generally, but really keeping their lending going by increasing access to Automated Valuations, (AVM’s), especially at higher loan-to-values. They will still do an AVM up to 90% Loan-to-Value.

I know that other lenders are all working hard to help where they can, and every other day we are seeing one lender or another improving their offering slightly.

There are also discussions going on with Government and the property industry and it will be interesting to see whether they do indeed mark out the property market as one of the first to go back to work. This means Estate Agents and surveyors, for example, being able to make an earlier return than most.

The property market is an essential part of the UK economy and to really get this moving once more as quickly as possible will be in everyone’s interest.

A couple of things here have already been mooted, ranging from an extension to Help to Buy to a wholescale axing of Stamp Duty for a short-term period up to certain levels.

We are still seeing lots of activity around remortgages and protection as you may imagine, but interestingly we have seen more signs of clients looking to purchase once more. What is really apparent is that everyone has loads of questions at the moment and we are trying to speak to as many people as possible to educate them around interest rates, 3-month payment holidays and how to get into a position to buy once this is all over.

As ever, our team is still available to help and impart their knowledge and give some much needed down-to-earth advice.

As for mortgage rates, for standard residential mortgages, borrowers can obtain 2-year fixes at 1.14%, (3.77% APRC) and 5-year fixes from 1.41%, (2.63% APRC) whilst variable tracker rates are around from 1.24%, (3.27% APRC).

Those looking at Buy-To-Let can now obtain products from 1.19%, (4.53% APRC) for 2-year fixed or 5-year fixes are available from 1.62% (3.75% APRC).

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