Delays, delays, delays! With so many lenders dropping rates to all time lows, it was inevitable that their back end would not be able to cope with front ends sales! We are finding a number of lenders are often taking one to two weeks to turn things around. A few are much longer and we know of one that is currently taking over nine weeks to review applications. Yes, nine weeks! When applying for the house of your dreams and with the Estate Agent demanding a quick survey, always check with the lender to find out their service levels before putting your mortgage with them. You might find the agents won't be happy with a substantial wait.
The other impact, just around the corner, is the impending Election. Based on previous experiences, many people put their home plans on hold whilst elections occur and this can also have an effect on lenders, who then reduce rates to attract more business, and so we have a spiral effect as per my earlier comment above.
On the up side, we've seen some incredible offerings from lenders. Last week we saw the lowest five year fixed rate deal at 1.29%, which was withdrawn pretty quickly and although the rate has increased, is still a very respectable 1.59% (up to 60% of the property value and £900 fee). We also saw one Building Society launch a 0.89% two year fixed rate deal with a £1,495 fee. How low can they go? The choices are currently attractive and seemingly very good for the end consumer. As always, terms and conditions apply and are subject to individual circumstances, so seek advice!
Finally, this weekend is The Property Investor & Homebuyer Show at ExCel in