I start this week’s column with superb news for First Time Buyers who have a 5% deposit! Two lenders have launched 95% mortgages over the last few days. It’s been some time since we’ve seen a true 5% deposit product with an affordable rate of interest (sub 6%) and low arrangement fees. Although the lenders are not actively promoting these products, they are available through certain mortgage intermediaries and will undoubtedly have limited funding availability. So be quick!
This does show a positive attitude from the lenders and an apparent appetite to lend. Although these products may only be ‘testing the water’ and will be extremely difficult to get through, I hope this is the start of the return of some normality to an under funded first time buyer market.
The Halifax House Price index has suggested that house prices dropped by 1.4% in April, compared to March. This is following Nationwide’s suggestion earlier in the month that prices for April had decreased by 0.2%. Despite the two indexes differing in amounts, they do come to the same conclusion that prices had dropped. This puts pressure on the Bank of England to keep the base rate on hold, which, in turn, is good news for those on tracker rate mortgages.
The number of mortgage products available in the market rose by 13% in April up to 11,748 according to an analysis by Mortgage Brain. This is nearly 7,000 more products than at the same time last year. Fixed rate product offerings rose by 16%, cementing their position as the most popular product type.
Whatever your particular need, do talk to an independent mortgage advisor who has access to all lenders in the marketplace rather than a limited panel or single provider.
Finally, AToM has been heavily involved in a local initiative called Set4Success which is due to launch shortly. Working in partnership with Horsham District Council, Horsham Rotary Club, Horsham Schools and local businesses, Set4Success will assist Horsham District’s young sportspeople with funding for training and competing. To find out more or to see how you can get involved, visit www.set4success.org
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