Mortgage Market Update – Rate War Accelerates
13.10.14The mortgage rate war that started over the quieter summer months has shown no signs of abating just yet, in fact if anything, it seems to be accelerating as lenders get themselves in a bit of a lather chasing business.
This has been exacerbated by recent falls in Swap Rates, with the cost of 5 year money dropping by 0.28% in the past 3 weeks to now stand at its lowest point since December last year. Whether we will see the low 5 year fixes we saw several months ago remains to be seen but it looks like it is going to be an incredibly competitive end to the year.
As a result we have seen most of the main lenders cutting a whole body of rates further, with Halifax, Natwest and Post Office the latest ones to bring out cheaper products.
As the battle intensifies it is not just the cost of the product that is affected. We are also seeing some easing of criteria from lenders who are relaxing after the initial knee-jerk reaction of the Mortgage Market Review implementation.
Whilst this in no way means that lenders are being lax, after all there are many rules around affordability now enshrined in stone, this should mean that more borrowers will be able to access the mortgage market and groups such as self-employed and contractors find that they are better catered for in the future.
See our latest Mortgage Best Buys.
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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