How can we help you?
We invite you to get in touch via a free, no-obligation initial consultation.
This is our take on recent news 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.
At a glance:
90% LTV market tentatively opening up
The higher loan-to-value end of the mortgage market has faced significant restrictions in the wake of Covid, with lenders retreating from this marketplace altogether or increasing rates significantly. However, with house prices continuing to rise and demand in the market high this end of the lending market may be opening up – albeit tentatively with lenders still remaining cautious… Lenders, like Accord have been popping in and out of the 90% market over the last 4 months but only allowing 90% applications for a day or two and they did the same last week but extended their offering so we enjoyed over a week of 90% mortgages.
Significant differences between the best remortgage and purchase rates
Despite rising house prices, the best mortgage rates available remain for those with large deposits or a large amount of equity in their homes and thus lower LTVs. However, even with a large deposit, the cheapest rates in the market on a 2, 3 and 5-year fixed are only available to those remortgaging… For instance, the best rate available on a 2-year fixed is 1.15% on a remortgage, but 1.2% for a first-time buyer or home mover. On a 3-year, 1.27% for remortgage and 1.36% for FTB or home mover and lastly on a 5-year term, 1.32% for remortgage and 1.41% for purchase…
Mortgage and housing market continue to defy the economic forecast
With the price of the average home rising to over £250k for the first time and demand high, you could be forgiven for forgetting that we have just seen the biggest fall in GDP since 1706 with a 21% decline in the second quarter of this year, unemployment continuing to rise and the spectre of a no-deal Brexit still hanging over us… Despite all this the housing and mortgage market continues to boom, even with the second of Covid underway. For context as to the scale of mortgage borrowing at present, Lloyds, the largest lender in Britain lent £3.5 billion between July and September of this year, which is the total amount of mortgage business they wrote in the whole of 2019…