Mortgage availability is the subject of the week, as not only have we had a flurry of snow, but also a flurry of new mortgage products!
According to Moneyfacts, mortgage availability is now at an 11-month high, with product choice increasing by a whopping 42% since October.
Leading the way is the return of the 90% LTV market, with another 88 more deals available at that level of borrowing than last month. There are now 248 products available which is up 386% since October.
Although we are still a way away from a fully functioning mortgage market it is great to know that mortgage availability is now improving at a rate of knots.
In “another sign that the market may be settling down”, the average time a mortgage product is around for has risen from 28 days in the past 3 months to 40 days. More stability of rate availability is a good thing indeed.
Income Multiple Increases
More good news has come from HSBC, who are now starting to accept annual bonus payments again as long as a payment has been received since 1st January. This will be a massive help to many looking at bolstering their borrowing potential.
HSBC will also now lend 5 times income for higher earners whilst Barclays are also back at 5 times income. In fact, for those earning over £75,000 and who have at least 20% deposit, Barclays may now be able to lend up to 5.5 times income for the right applicant!
More lenders are also cutting rates and you can now once again get a 5-year fix from just 1.29%.
The Property Show Podcast – Episode 2
For those of you who want to listen to the latest goings-on in the property and mortgage world, Episode 2 of The Property Show Podcast is now out.
In this episode Coreco MD Andrew “Monty” Montlake and Louise Fletcher talk about the cladding scandal and the latest government measures to help homeowners who are unable to move or remortgage, explain why surveys are so important to protect you when you’re buying, and look at how lockdown living has changed how we use the space in our homes.
Louisa also gets all hot and bothered about what improvements add value and the ones that can make properties tricker to sell, plus Monty has a quick look at the current mortgage rates available.
You can listen to it on the link below:
Have a great week.
Best Mortgage Rates
In terms of mortgage rates, for standard residential mortgages, borrowers can obtain 2-year fixes at 1.14%, (3.80% APRC) and 5-year fixes from 1.29%, (3.80% APRC) whilst variable tracker rates are around from 1.39%, (3.30% APRC).
Those looking at Buy-To-Let can now obtain products from 1.19%, (4.40% APRC) for 2-year fixed or 5-year fixes are available from 1.64% (3.80% APRC).