New lenders are very welcome

The sun’s been shining, two new lenders have opened for business, many interest rates have been reduced and Home Information Packs (HIPS) have been suspended! What a super week it’s been!

Aldermore have entered both the residential and buy to let mortgage markets. They are offering mortgages up to 80% loan to value on residential mortgages but, unlike most lenders these days, they will not credit score. Buy to Let mortgages will be offered at 75% of the property value and the lenders main target will be experienced landlords.

Precise Mortgages also launched into the Buy to Let market targeting high quality loans for prime customers up to 75% of the property value.

Both lenders are a welcome addition to an under funded market and in the Buy to Let sector, in particular, supports my previous articles advising that this area appears to becoming buoyant once again (although this may change if there are any dramatic changes to Capital Gains Tax in the forthcoming emergency budget).

A number of residential lenders have lowered rates during the last few days. There are some attractive long term fixed rates available, specifically over a five year term. If your mortgage is due for renewal in coming months, it’s worth exploring now to ensure you do not miss some fantastic opportunities. That said, no one can accurately predict what will happen with mortgage rates in the short term. However, most seem to agree that rates will go up, it’s just a case of when.

Finally, if you are contemplating selling your home, this has recently become cheaper following the suspension of Home Information Packs (HIP’s). On the 20th May, an order suspending HIP’s in England and Wales was imposed with immediate effect, pending primary legislation for a permanent abolition. Sellers will still be required to commission, but won’t need to have received, an Energy Performance Certificate (EPC) before marketing their property. Let’s hope this news will stimulate the market for those who were reluctant to sell due to cost, time and effort in getting a HIP arranged. Although this is great news, spare a thought for the large number of people in the HIP sector who may now lose their jobs and, of course, those poor soles who paid for their HIP on the day of the suspension announcement....let’s hope they get their money back!