08 February 2013
It's all 'go' in the Mortgage market!
There are many changes in the mortgage market to report on this week! I start with those who have cut rates or launched new products! These include Halifax (some rates reduced by 0.5%), Barclays (some rates cut by 0.5% across residential and Buy to Let ranges), Aldermore Mortgages (some Buy to Let rates cut by 0.8%) and Precise Mortgages (some rates cut by up to 1%). Others including HSBC, Tesco Bank and the Post Office have all launched very attractive low fixed rates. However, always make sure you read the small print as although the rate may be attractive, the attached fees to the product may not be so and the deposit required is probably quite substantial. Another important point to check is the rate you will revert back to when the product fixed rate ends. You don’t want to have a ‘payment shock’ at the end of the term if the rate you revert to turns out to be substantially higher than your initial rate.
Saffron Building Society have launched a superb innovative product in to the specialist sector aimed at those who have had a slight blemish or two on their credit history. Called the ‘Credit Repair Mortgage’, the product, which has no early repayment charges at all, is looking to assist those who have had financial issues in the past obtain a mortgage with a view to repairing their credit score and eventually getting them back on to high street rates. The product caters for First Time Buyers as well as home movers and is initially for those who are employed. The real win win on this product is that the longer the customer is with the lender, the lower their rate becomes. For example, one product tier reduces annually by 0.4% for the first three years. This is great innovation! Terms and conditions apply…Secured loans have also had a positive week as Shawbrook Bank launched a 95% LTV (loan to value) home owner product. Loan sizes range from between £3,000 and £25,000 and are secured against the property as a second charge. This is a really great move by the lender and will service a considerable gap currently in the market when mainstream high street lenders won’t allow a high LTV loan to a customer as a first charge.