03 August 2017

A swing between the high street lenders and the more niche market

During the last few weeks, we have seen several lenders who have posted positive half year results.  Many of them stating that they have increased lending against their previous financial year results.  But this is hardly surprising as many didn't really want to lend heavily last year.  However, it is important to run with the positive news and such announcements for half yearly figures show that lenders are keen to lend and are looking at ways to compete in an active market.  What this means is that end consumers should be able to bag a bargain for some time yet whilst rates remain low and competitive.  Some industry pundits are even stating that it will be late 2018 or early 2019 before they expect any rate rises...

These results have also resulted in something of a swing between the high street and niche lenders.  The smaller lenders are stealing market share from the 'super tankers' on the high street as an increasing number of consumers are requiring a manual and human assessment rather than a computer decision making system.  Despite all of the available technologies in the current climate, sometimes a conversation with a human being is just what is needed!  And you’ll be surprised at what some of the smaller lenders can do, including lending into retirement, up to six times income, cross collateral charges on numerous properties and more.

From where we see it, on the front line, I would dare to suggest that consumer confidence appears to be the highest it has been for some considerable time.  People are selling, people are buying and many are remortgaging!  July and August are never normally this busy!  It is not just one geographical area either, although does appears to have a leaning to the south. What does seem to be apparent is that the demand is for ‘all types of mortgages' for all types of people!   From the straight forward, to the complex, to the commercial shop front, to the credit issues, to the first time landlord investing in their first Buy to Let property and so much more, we are seeing many different scenarios.

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