The mortgage myth
By The Beresfords Marketing Team - 04 August 2011
The good news is that what the media is currently reporting is actually a myth. There is no mortgage shortage and lenders have actually begun to compete for your business. How else can you explain certain lenders offering tracker rates from as low as just 1.98%!
Meanwhile, 2 year fixed rate products are now down at 2.48% and 5 year fixes are available at just 3.64%, so from a product point of view this year really does seem like a good time to lock into a great product.
In fact according to a report by Moneyfacts, mortgage rates are now the lowest they have been for 23 years, not only due to the expectation that rates will now not change this year, but also because lenders are finding it cheaper to raise funds in the financial markets and have more of an appetite to compete.
Apart from these rate reductions, the interesting thing is the amount of innovation that has re-appeared in the market, with lenders looking to assist on the more difficult transactions. Even at the higher loan-to-value (LTV) levels, where we have seen an increase in products available, including some at 95% LTV.
Affordability calculations and credit scores have both become more realistic, helping to ensure that the right borrowers are matched with the right loan amounts.
Of course in this new era certain people will still struggle, those with credit issues, those looking to stretch income to levels that are too high to justify and those without at least a 5% deposit. However, clients having to save for a deposit or rectify past credit mistakes is no bad thing.
Whilst things are still tough, they are nowhere near as tough as the press would have you believe. Lenders are lending and mortgages are available and at exceptionally low rates.
For further information contact Beresfords Mortgages on 0800 389 9986.