For those lucky enough to be on a very low bank base rate tracker mortgage, you may have enjoyed a couple of ‘comfortable’ years with the bank base rate being at an all time low. However, are you one of the few on tracker rate mortgages who have taken advantage and overpaid on their monthly payments? Barclays recently carried out a survey of over 1,000 borrowers and found that only 10% were currently overpaying and 6% are planning to start overpaying this year. For those who have not yet started, this could be a missed opportunity on shaving a number of years from the term of the loan, or reducing the interest paid each month, even by just overpaying small amounts.
The Buy to Let market (investment properties) looks set to be the most competitive sector of the mortgage market as further lenders signal their intent to offer products to this area. Metro Bank, Santander and Yorkshire Building Society are just a few that have signalled their interest for later in the year. Skipton Building Society has also this week re-launched in to the Buy to Let marketplace. As First Time Buyers continue to struggle to get on the property ladder (the government First Buy Scheme may assist a few), the rental market is expected to continue its rapid growth. Interest rates for investment properties have tended to be slightly higher with larger lender fees charged for arranging these types of mortgages. However, with more lenders already competing, both rates and fees are already starting to reduce and will fall further as the market becomes crowded.
Finally, larger loan availability is also on the return. Having been somewhat restricted over the last few years, obtaining loans of £1m + have been slightly more difficult to achieve. This is set to change as Nationwide have recently increased their maximum loan to £2m at 75% of the property value and 70% above £2m on an individual case by case basis. Bank of China will also consider loans of up to £10m for the right applicants. All steps in the right direction and one might even start to get slightly excited at the increasingly positive nature of the mortgage news circulating the market of late!
Showing posts with label bank of china. Show all posts
Showing posts with label bank of china. Show all posts
01 April 2011
04 March 2011
Fantastic February!
The Bank of England’s January lending figures report that the number of remortgages rose to 33,498. This is nearly 10% above the six month average. These statistics suggest an increasing wariness of future mortgage rates and in addition, the fact that fixed rate mortgage interest rates were relatively low in January.
Mortgages for property purchases also increased, to 45,723, slightly below the six month average of 46,686. Total lending to individuals increased by £1.5bn.
I suspect these figures to be vastly different for February as some lenders increased fixed rates due to the fluctuation in the money markets and many customers will have raced to secure low rates before they were withdrawn.
Nationwide has reported that house prices increased by 0.3% in February with the average UK house price now standing at £161k. This is 0.1% lower than this time last year. The lack of first time buyers and easily accessible mortgages are still major factors with regards to prices and activity in the housing market.
AToM had a fantastic February for new business received. Applications were up 68% compared to February 2010 and resulted in our best month since June 2009 for new business. This was mainly due to our top four lenders – GE Money, who offer mortgages to the employed with some allowance for previous credit problems. Bank of China, who had a market leading lifetime tracker rate residential mortgage (they also cater for Buy to Lets). Platform (part of the Co-operative Bank Plc) who are actively lending in the Buy to Let market, with small arrangement fees. And AToM’s “Complex Prime”, a number of funders who look to assist those who have been declined by the high street lenders credit scoring systems for no apparent reason. This could include not being on the voters role, having to little (or too much) credit, securing a charge on more than one property, lending into retirement and many other reasons. Whatever your mortgage requirements, speak to an independent mortgage adviser!
Mortgages for property purchases also increased, to 45,723, slightly below the six month average of 46,686. Total lending to individuals increased by £1.5bn.
I suspect these figures to be vastly different for February as some lenders increased fixed rates due to the fluctuation in the money markets and many customers will have raced to secure low rates before they were withdrawn.
Nationwide has reported that house prices increased by 0.3% in February with the average UK house price now standing at £161k. This is 0.1% lower than this time last year. The lack of first time buyers and easily accessible mortgages are still major factors with regards to prices and activity in the housing market.
AToM had a fantastic February for new business received. Applications were up 68% compared to February 2010 and resulted in our best month since June 2009 for new business. This was mainly due to our top four lenders – GE Money, who offer mortgages to the employed with some allowance for previous credit problems. Bank of China, who had a market leading lifetime tracker rate residential mortgage (they also cater for Buy to Lets). Platform (part of the Co-operative Bank Plc) who are actively lending in the Buy to Let market, with small arrangement fees. And AToM’s “Complex Prime”, a number of funders who look to assist those who have been declined by the high street lenders credit scoring systems for no apparent reason. This could include not being on the voters role, having to little (or too much) credit, securing a charge on more than one property, lending into retirement and many other reasons. Whatever your mortgage requirements, speak to an independent mortgage adviser!
14 January 2011
Lenders are showing an appetite to lend!
2011 has started with a bang! The Bank of China have reduced their Residential Life Time Tracker rate to just 1.80% above the Bank of England Base Rate. Currently, the pay rate is 2.30% (APR 2.50%). This is available to home movers, those re-mortgaging and also to First Time Buyers, up to a maximum loan of 80% of the property value. A very good rate and a positive step forward from this lender.
BM Solutions, part of the Lloyds Banking Group, have launched some fixed rate Buy to Let mortgages with arrangement fees of just 1.5%. Compared to some in the market, the fees alone might save up to 2% in costs! Many believe the Buy to Let / Investment property market will boom in 2011.
However, with regards to fixed rates, we’ve seen some lenders already increasing their product rate offerings. Whether ‘to fix or not to fix’ your mortgage rate, will be an ongoing debate throughout 2011.
Lenders are showing an appetite to lend. One lender on the AToM panel has allocated a tranche of £10m in funding to be distributed in January. This is great news for the market and in addition, this lender does not credit score. So if a high street lender has declined your application due to a low credit score, or because you don’t fit their particular requirements, you may be exactly the type of customer our lender is looking for. However, please note that they are not looking for those who have had previous credit issues.
Finally, First Time Buyers are likely to be in need of most support throughout 2011. So far, there have been some small glimmers of hope with a couple of lenders revamping their 90% loan to value products, so requiring just a 10% deposit but this is still not enough! The interest rates are relatively high and as such the monthly payments on this type of mortgage won’t be attractive to many prospective borrowers. Those with a higher deposit will attract a lower interest rate. But in current climates, that tends to be difficult to achieve. More still needs to be done to help first timers get onto the property ladder and I hope that lenders take action to assist. Sooner, rather than later.
BM Solutions, part of the Lloyds Banking Group, have launched some fixed rate Buy to Let mortgages with arrangement fees of just 1.5%. Compared to some in the market, the fees alone might save up to 2% in costs! Many believe the Buy to Let / Investment property market will boom in 2011.
However, with regards to fixed rates, we’ve seen some lenders already increasing their product rate offerings. Whether ‘to fix or not to fix’ your mortgage rate, will be an ongoing debate throughout 2011.
Lenders are showing an appetite to lend. One lender on the AToM panel has allocated a tranche of £10m in funding to be distributed in January. This is great news for the market and in addition, this lender does not credit score. So if a high street lender has declined your application due to a low credit score, or because you don’t fit their particular requirements, you may be exactly the type of customer our lender is looking for. However, please note that they are not looking for those who have had previous credit issues.
Finally, First Time Buyers are likely to be in need of most support throughout 2011. So far, there have been some small glimmers of hope with a couple of lenders revamping their 90% loan to value products, so requiring just a 10% deposit but this is still not enough! The interest rates are relatively high and as such the monthly payments on this type of mortgage won’t be attractive to many prospective borrowers. Those with a higher deposit will attract a lower interest rate. But in current climates, that tends to be difficult to achieve. More still needs to be done to help first timers get onto the property ladder and I hope that lenders take action to assist. Sooner, rather than later.
07 January 2011
A positive start to 2011!
A very Happy New Year to you! This is my first day back in the office following the festive period and already I’m struggling to keep up with the number of product changes from various lenders. They are positive changes though!
The Bank of China have reduced their Residential Life Time Tracker rate to just 1.80% above the Bank of England Base Rate. Currently, the pay rate is 2.30% (APR 2.50%). This is available to home movers, those re-mortgaging and also to First Time Buyers, up to a maximum loan of 80% of the property value.
The Coventry has focused on Buy to Lets. With rates from 4.25% and zero arrangement fees, they are well worth a look if you are considering taking a step into the Buy to Let arena in 2011. Many believe this will be a buoyant area generally as First Time Buyers continue to struggle to get onto the property ladder and surrender to renting instead.
The Bank of England has released lending figures for November, stating that re-mortgaging levels increased by some £400m compared to that of October. Approvals stood at 34,262 compared to 30,429 in October with a six month average 28,210. Purchase approvals amounted to 48,019, higher than Octobers figures, but below the six month average of 48,145.
And finally... if there is one New Year resolution to maintain, resulting from the dire year that was 2010, it is to be on top of your finances! By this, I don’t just mean mortgages, although as this is inevitably your biggest debt it should be a priority! Do you have enough life cover? Have you made financial provision to cater for an unfortunate redundancy? Have you written a will? These are all matters that may seem small in isolation but which could prove to be very worthwhile at a later date.
Let’s hope that 2011 see's the beginning of a recovery in the financial world. Last year was depressing financially and this year will be tough too but there are some good signs that the property market, at least, will hold its own. Let’s hope so!
The Bank of China have reduced their Residential Life Time Tracker rate to just 1.80% above the Bank of England Base Rate. Currently, the pay rate is 2.30% (APR 2.50%). This is available to home movers, those re-mortgaging and also to First Time Buyers, up to a maximum loan of 80% of the property value.
The Coventry has focused on Buy to Lets. With rates from 4.25% and zero arrangement fees, they are well worth a look if you are considering taking a step into the Buy to Let arena in 2011. Many believe this will be a buoyant area generally as First Time Buyers continue to struggle to get onto the property ladder and surrender to renting instead.
The Bank of England has released lending figures for November, stating that re-mortgaging levels increased by some £400m compared to that of October. Approvals stood at 34,262 compared to 30,429 in October with a six month average 28,210. Purchase approvals amounted to 48,019, higher than Octobers figures, but below the six month average of 48,145.
And finally... if there is one New Year resolution to maintain, resulting from the dire year that was 2010, it is to be on top of your finances! By this, I don’t just mean mortgages, although as this is inevitably your biggest debt it should be a priority! Do you have enough life cover? Have you made financial provision to cater for an unfortunate redundancy? Have you written a will? These are all matters that may seem small in isolation but which could prove to be very worthwhile at a later date.
Let’s hope that 2011 see's the beginning of a recovery in the financial world. Last year was depressing financially and this year will be tough too but there are some good signs that the property market, at least, will hold its own. Let’s hope so!
10 September 2010
Better options for customers.
The Bank of China this week has increased the amount they will lend compared to the property value. Residential mortgages are now offered to 80% Loan to Value (LTV), Buy to Lets up to 75% LTV and Commercial mortgages up to 70% LTV. Positive moves from a lender who distribute their mortgage products through their branch network and only five other distributors in the UK, of which AToM are one. They will also consider First Time Buyers, Home Movers and Remortgage applications. Unlike some other lenders, Bank of China will also look at flats above shops, houses of multi occupancy, new build properties and freehold flats. Some (good) potentially useful niches. We find them incredibly helpful to deal with and they have some very competitive rates.
The Nationwide House Price Index has suggested that house prices dropped by 0.9% in August, with the average house price now at £166,500. This is the second month in a row Nationwide have reported a house price decrease. Let’s hope this is not the start of a trend and stabilises shortly; although it is probable that the lower level of activity over the summer is reflected in these reported figures.
The number of mortgage products appear to be on the increase. New products being launched in August far exceeded the same period last year according to one of the industries leading sourcing systems, Mortgage Brain. In August 2009, just 5 new mortgage products were launched, however in August 2010, some 1,500 products were launched. This is good news and despite some products being withdrawn and re-launched with revised rates, 350 products were completely new. Fixed rate product offerings increased by 31%, whereas Tracker products decreased by 5%. The system also reports the total number of products available to the mortgage market now stands at around 7,600!
Is the appetite for mortgage lending beginning to reappear? Despite the inevitable doldrums reported by the national press, we’re hearing some great rumours that lenders will make a big push to lend in the last quarter of this year. Fingers crossed!
The Nationwide House Price Index has suggested that house prices dropped by 0.9% in August, with the average house price now at £166,500. This is the second month in a row Nationwide have reported a house price decrease. Let’s hope this is not the start of a trend and stabilises shortly; although it is probable that the lower level of activity over the summer is reflected in these reported figures.
The number of mortgage products appear to be on the increase. New products being launched in August far exceeded the same period last year according to one of the industries leading sourcing systems, Mortgage Brain. In August 2009, just 5 new mortgage products were launched, however in August 2010, some 1,500 products were launched. This is good news and despite some products being withdrawn and re-launched with revised rates, 350 products were completely new. Fixed rate product offerings increased by 31%, whereas Tracker products decreased by 5%. The system also reports the total number of products available to the mortgage market now stands at around 7,600!
Is the appetite for mortgage lending beginning to reappear? Despite the inevitable doldrums reported by the national press, we’re hearing some great rumours that lenders will make a big push to lend in the last quarter of this year. Fingers crossed!
30 July 2010
Bank of China choose AToM
The debate on where mortgage interest rates are going took another stumble this week. For many months, various economists had predicted that the Bank of England base rate would rise towards the end of 2010 with further rises throughout 2011. However, Ernst & Young have suggested that if the impending spending cuts come through, the BBR will remain at 0.5% until 2013! Another sign that although we all believe rates have to rise, no one really knows when this will occur.
With this in mind, AToM towers has seen a vast amount of people requesting long term fixed rates over the last 3 to 4 weeks. Uncertainty seems to be the only certainty in the market and, quite rightly in my opinion, people want the guarantee of a long fixed rate term on their mortgage so they can plan for the next few years in confidence. There are some great rates to be negotiated currently and some include free valuation and solicitor’s costs, so that re-mortgaging fees are kept to a minimum.
We’ve also seen lenders expanding their distribution. AToM was delighted to be appointed to the Bank of China distribution panel last week. We can now offer lifetime tracker rates for Residential, Buy to Let and Commercial properties. Bank of China have only been in this area of the market for a year and AToM is now one of only five distributors in the UK to offer their products, outside of their branches. Please contact us to find out more.
And finally, I’ve mentioned this before, but its back on the radar. Many dormant lenders are offering customers a discount of up to 30% off their mortgage to move lenders. If your current lender is one of these, then it’s worth a call to see if you qualify for a discount. Normally, they will give you a deadline in which to complete the transfer of your mortgage but I’m sure it’s a timescale that AToM could meet. Just think, up to a 30% reduction on your mortgage - it could be a financially beneficial telephone call!
With this in mind, AToM towers has seen a vast amount of people requesting long term fixed rates over the last 3 to 4 weeks. Uncertainty seems to be the only certainty in the market and, quite rightly in my opinion, people want the guarantee of a long fixed rate term on their mortgage so they can plan for the next few years in confidence. There are some great rates to be negotiated currently and some include free valuation and solicitor’s costs, so that re-mortgaging fees are kept to a minimum.
We’ve also seen lenders expanding their distribution. AToM was delighted to be appointed to the Bank of China distribution panel last week. We can now offer lifetime tracker rates for Residential, Buy to Let and Commercial properties. Bank of China have only been in this area of the market for a year and AToM is now one of only five distributors in the UK to offer their products, outside of their branches. Please contact us to find out more.
And finally, I’ve mentioned this before, but its back on the radar. Many dormant lenders are offering customers a discount of up to 30% off their mortgage to move lenders. If your current lender is one of these, then it’s worth a call to see if you qualify for a discount. Normally, they will give you a deadline in which to complete the transfer of your mortgage but I’m sure it’s a timescale that AToM could meet. Just think, up to a 30% reduction on your mortgage - it could be a financially beneficial telephone call!
Subscribe to:
Posts (Atom)