07 December 2012

A debt is not just for Christmas...

Following on from last week’s news on rates, Nationwide have cut some of their mortgage rates by up to 0.7% as they join the apparent ‘product price rate war’.  That is a substantial cut!  Santander for Intermediaries has launched another set of attractive rates which are only available for seven days. The message from this lender is to be quick as the funds are usually snapped up within their seven day window. That said, you don't have to complete the mortgage transaction inside that timescale.  Simply secure the funds and protect the rate.  How the market has changed!  

Another lender has withdrawn from the Interest Only mortgage sector.  I might write a separate article on this shortly as I feel that there is still a place for this type of lending for the right client profile and it seems that many lenders are choosing to ignore these quality cases.  Pretty soon it might be easier to confirm who is still offering this option!!

There are rumours that mortgage lending may become easier to obtain next year and some financial gurus are predicting an increase of up to ten billion in net lending.  That is a substantial increase although we all suspect that the lenders will not necessarily relax their underwriting criteria!  So more mortgages but strict criteria and that is why my final point this week is, again, so important. 

Christmas will be here before we know it.  Now, I don’t want to preach but please remember that credit is like your life history to a financial institution. I’m not saying don’t use credit but, if you do, then make sure you can pay it back!  If you miss a payment over the Christmas period, on any debt, it could affect your ability to obtain any type of credit next year.  Credit reports show up to the last six years of your financial history and details any missed payments to everyone from mobile phone providers, to car insurance and, of course mortgages.  To be safe make sure all payments are made on or before the due date and keep your credit file crystal clear.

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