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This is our take on what is currently happening in the mortgage market. Our views are often cited in several national publications, including; BBC News, The Times, Telegraph, City AM, FT Adviser and Daily Mail, as well as a number of key trade publications, so this should keep you ahead of the curve. If you have any questions on any of these stories, or would like further information, please do not hesitate to get in touch.
Lenders increasingly open to later life retirement
In a little know and non-advertised criteria change NatWest has changed their maximum retirement age for a person working to 75 years-of-age instead of the previous 70, allowing borrowers to extend their mortgage term potentially giving them better borrowing flexibility. This is not a piece of criteria unique to NatWest, but it is very helpful to have another mainstream lender able to offer facilities of this type at the mainstream rates they offer. NatWest will of course still sense check, for example, if a borrower is employed in a physical role the underwriter may say 67 or 70 is a more reasonable retirement date, but for someone in a non-manual role, if it makes sense, and they legitimately intend to retire later in life then this is a great additional option to take advantage of.
Wealth managers recommending longer-term fixed rates
The cost of short-term borrowing and long-term borrowing has converged, mirroring the cost of borrowing at an institutional level and only 0.15% separates the best 2-year fixed from the best 10-year fixed at present. We are seeing an increasing number of clients opt for longer fixed terms of 5-years and up and are seeing clients who are referred to us through wealth advisors and IFA’s having been advised to opt for longer-term mortgages both on residential and investment properties, allowing investment into funds long term.
Mortgage rates stabilise following significant increases
This last week was the first time in a very long while that the market leading rates have remained stable as can be seen in the Best Buy table below. Since talk of inflation and base rate rises began towards the end of last year, we have seen consistent small increases on a weekly basis, punctuated with more significant increases.