The mortgage press is starting to increase their commentary on the ever growing importance of technology proving itself in the mortgage sector. This includes recent adverts suggesting that a computer algorithm will ‘fix’ the mortgage market and choose the right product for you! In time, this might become a reality! However, given that the mortgage is the biggest financial debt you are ever likely to have, over a long period of years, you should be absolutely 100% sure that is the right product for you moving forward. I do believe there is a place for technology in everyone’s lives, and certainly in our marketplace, however I also believe there will always remain a place for the human touch and people like to buy from people and organisations they trust. With such a plethora of information available and such an in-depth decision to make, I can’t see that position changing for some time yet.
Rates have been in the headlines again this week. Some pundits are filling column inches suggesting that the bank base rate will rise by the end of the year and one large bank saying it could rise to 0.75% by the end of next year.
In comparison, this week has also seen a sub 1% fixed rate launched by Accord Mortgages, part of Yorkshire Building Society. The two year fixed deal requires a 20% deposit. Other initiatives include the Lloyds Banking Group who are offering a £1,000 incentive for customers who remortgage from another lender before 12th November whilst the Clydesdale have reduced a number of competitive 2 and 5 year fixed rate products. The threat of rate rises hang over our heads as a real possibility, but a lot of lenders are seriously ‘under target’ for the year and I suspect there will be competitive rates around for a few months yet. Do keep an eye out as there are some great offers around.
Finally, if you have more than four buy to let properties, the way a lender underwrites your application is changing. As previously advised, from 30th September the new Prudential Regulatory Authority rules come in to effect and lenders will ask for increasing amounts of information regarding your portfolio and finances. Be prepared and always speak to a specialist!