Stephen King – Bri­tish Mort­gage Awards Win­ner – Over­all Bro­ker 2013 Man­ag­ing Di­rec­tor

Essex Life - - Property -

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.

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