02 August 2012

Competition is a good thing for the end consumer

As the world’s eyes are diverted from the on-going banking and financial issues and redirected to the biggest sporting event in the world, it makes you wonder how much business will be lost due to people sneaking off and watching the Olympics!  I’m sure I’m overdue a sick day or two! 

Competition is also taking place in the mortgage finance arena as we witness some rate wars taking place, which can only be a good thing for the end consumer.

For those on an attractive lender standard variable rate, but who need to raise a small amount of funds, a secured loan might be an option.  Secured loans tend to be a ‘second’ charge on your property and provide an alternative way to release equity from your home whilst leaving your current mortgage in place.  Various lenders operate in this arena and strong competition has bought rates down to below 7%.  Rates are subject to circumstances and terms and conditions, etc.
In the first charge arena, we have seen HSBC promote a sub 3% rate fixed for 5 years.  Santander quickly followed and, through brokers, also offered a free valuation and free legals on their 3 year sub 3% fixed re-mortgage product.  Natwest have also joined the front runners and launched a sub 3% fixed for 5 years, through the intermediary sector.  All subject to terms and conditions and individual circumstances, etc!  Others cutting rates include Accord Mortgages by up to 0.6%, Nationwide by up to 0.4% and Halifax by up to 0.5%.  Great to see!  Definitely worth a review with someone who can access the whole of market, if you’re looking to change your mortgage.

And finally (and I had to end on an Olympic note!) if you are lucky enough to own a property near the main Olympic sites in London, Lloyds research suggests that homeowners have seen the value of their home rise by nearly £70,000 since the winning bid was announced in 2005.  The average house price across the 14 postal districts closest to the main site for the London 2012 Olympic/Paralympics Games stood at £273k in March 2012, an increase of 33% from July 2005s average of £206k.

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