The Bank of England has reported that mortgage lending in December dropped to the lowest level in two years and Nationwide has reported house prices dropped by 0.1% in January, the first fall recorded by the lender since Aug 2009. Neither of these articles is worth further comment though as there are many positives to concentrate on!
The Buy to Let market was given another boost this week with Platform (the intermediary lending arm of the Co-operative Bank) revamping rates and launching new products. If you’re looking to purchase a property for investment purposes, this lender is well worth a look. Tracker rates start from 3.89% (APR 5%) and only have a £995 arrangement fee (some lenders charge up to 3.5% of the loan amount). These products also have free legal costs for those looking at re-mortgaging existing Buy to Let properties. AToM is one of a small number of distribution partners in the UK chosen by this lender to offer these products.
On the Residential side, one of our local Business Development Managers, from a major high street lender informed us that their remortgage business had increased 7% over the last week and now accounted for 46% of their business. At the same time, those who applied for mortgages requesting a fixed rate product were up 9% on previous weeks.
And finally, January’s new mortgage business received at AToM amassed to an 83% increase, compared to the same period in 2010. Many customers are fixing their rates in anticipation of a possible bank base rate rise, but some are also taking advantage of the attractive bank base rate trackers currently available. Others have more complex scenarios that they needed assistance with, which the high street lenders would not normally entertain. Despite what you read in the national press, we are seeing an appetite from lenders to lend, an increasing willingness to be helpful and, most importantly, approval of applications. Long may that continue!
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