The Large Mortgage Loan arena has been relatively quiet of late, but we are starting to see more lenders looking at this part of the mortgage market once more.
After the stamp duty changes had a massive effect in slowing the top-end of the market, we are now seeing Prime Central London and other areas of high-value properties recover. Attracted by low-interest rates and weaker sterling for some foreign buyers, large loans are becoming more common.
At this end of the market, borrowers require both mortgage brokers and lenders who have experience in understanding the complexities around different income sources and are flexible enough to make a case work for both lender and borrower.
Understanding sources of wealth, complex accounts from various companies and assets is important. As you would imagine this is an area of the market we have a particular specialty in, but it is pleasing that we have also been able to help shape lenders policies towards this area of the market.
In particular, one lender has recently introduced a new Bespoke product. This enables us to speak directly to the decision makers about more complicated cases without having to worry about normal strict criteria guidelines.
It has been another competitive week in the mortgage market, and we have already had early notification of another couple of lenders looking to reduce their rates later this week. This shows that in the battle for mortgage business there will be no early let up. The market is improving in all aspects and borrowers are benefitting.
Mortgage rates from lenders are subject to the usual competitive jostling and as such, the main headline rates have reduced a touch. For standard residential mortgages, borrowers can obtain 2-year fixes at 1.35%, (3.84% APRC) and 5-year fixes from 1.80%, (3.48% APRC) whilst variable tracker rates are around from 1.29%, (3.82% APRC).
Those looking at Buy-To-Let can still obtain products from just 1.39%, (4.71% APRC) for a 2-year tracker or 5-year fixes are available from 1.99% (4.40% APRC).
If you want to know more, please contact one of our experts in the Large Mortgage Loan department here.