Stephen King – British Mortgage Awards Winner – Overall Broker 2013 Managing Director
Following the financial crisis, mortgage product numbers have slowly but surely increased, with many new lenders having entered the market in the last few years. Some of these new lenders only making their products accessible to borrowers via the intermediary channel. Overall mortgage product numbers are at a post credit crisis high and this proliferation of products demonstrates a renewed confidence from lenders and is great news for borrowers of all types, be they first time buyers, those looking to remortgage existing arrangements, or those looking to invest in Buy to Let. With competition intense, average mortgage rates are effectively at an all time low.
First time buyers and home movers with more modest levels of equity have gained from the government intervention in the housing market, via the highly successful “Help to Buy” initiatives. These allow borrowers to once again access the housing market with as little as a 5% deposit both for those buying a new build or re-sale properties.
Remortgage customers have been spurred on following several recent comments from The Bank of England Governor Mark Carney, who has expressed his views on the likelihood of a rise in the Bank of England Base Rate (BBR). Some borrowers are recognising the benefit of all time lower rates and by remortgaging are able to simply save money. Others are remortgaging but are opting to continue to pay the same monetary amount each month as they were previously but as a consequence reduce their term significantly by overpaying (subject to product T&Cs) often saving thousands of pounds in interest overall.
Other homeowners are using increasing levels of equity in their current property to release funds to allow them to invest in the Buy to Let sector and help them create or grow an existing property portfolio. This of course can be for more than one property dependant on the equity and clients personal circumstances.