There has been a flurry of activity in the mortgage market over the past week, which has resulted in a couple more lenders offering 90% LTV products once more, albeit in small chunks at a time.
Hot on the heals of Accord and TSB with their 2 days and 1-day offering respectively, Metro Bank has re-entered this market with their own products. The rates are at 3.99% fixed for 5 years which follows the trend of higher rates at this level, but at least it is an offering that some First-Time Buyers will be grateful for.
What was also interesting was a report out that said that Mortgage Brokers were having to challenge more underwriting decisions than before the pandemic, with issues such as incorrect affordability calculators and bonus assessments, as well as valuation challenges.
In many cases, this is being successful which really shows the worth of a mortgage broker at these times. Those that go directly to a lender may not even realise that some decisions can be challenged or be aware of the finer details.
Last week alone we managed to save cases that would not have completed without our intervention, utilising the excellent relationships with lenders we have built up over the years.
The good news is we are starting to see some more lenders looking at offering some different types of products to help appeal to borrowers. As an example, specialist lender Vida has launched a 5-year fixed rate for Buy-to-Let landlords that only has a 3-year tie in. This gives landlords the peace of mind of a fixed rate but extra flexibility after year 3.
Other lenders have also cut rates amidst the growing competitiveness of the Buy-to-Let market, and it is interesting to see the levels of enquiries form landlords also rise over the past few weeks.
Despite everything that is going on at present, the housing market is showing no signs of letting up and our professionalism, client-centric approach and positive attitude is what is important, and is what will resonate and be remembered by clients and introducers alike. Our behaviour and work ethic in times like these is what defines us all.
Have a great week.
In terms of mortgage rates, for standard residential mortgages, borrowers can obtain 2-year fixes at 1.20%, (3.30% APRC) and 5-year fixes from 1.42%, (3.00% APRC) whilst variable tracker rates are around from 1.45%, (3.90% APRC).
Those looking at Buy-To-Let can now obtain products from 1.22%, (4.80% APRC) for 2-year fixed or 5-year fixes are available from 1.62% (3.77% APRC).