The Bank of England have said that mortgage approvals have risen to their highest level since March last year. The number of loans approved for house purchases amounted to 56,215 in September, up from 52,970 in August and significantly higher than the six month average of 48,221.
30th October 2009
Once again mortgage lenders have been cutting their rates as they try to ramp up their business levels. Northern Rock has made the most changes over the last few weeks. In total they have changed their rates five times and introduced exclusive broker deals.
Aaron Strutt, a broker at Trinity Financial Group, says: “When one lender announces that they are going to cut rates, it is generally not long before I see others doing the same. Nationwide, Abbey, RBS and Cheltenham and Gloucester have all cut rates this week.”
“Northern Rock have some very low fixes and trackers with sensible fees. They offer a two-year fix, via Trinity Financial, at 3.65% for house purchases or 3.69% for those remortgaging. The arrangement fees are £595 and £995, respectively. Both deals are available to those with a 30% deposit and for loans of up to £1 million. Five-year fixes are also getting cheaper, with the lowest rates now being around 4.99%.
“We are now starting to see more lenders introduce low rates but with high fees, so check the small print of any low mortgage rate deal you see. Alliance and Leicester now offer a two-year fix at 3.15% for up to 70% loan-to-value with a 2% arrangement fee.”
Despite fixed rates being very low, borrowers are still paying a premium for payment security. Two-year base rate trackers now start at 2.69% – which is a fantastically inexpensive mortgage rate. With the average standard variable rate being about 4.5%, many borrowers are paying more than they need to and should look again at switching mortgages to achieve a lower rate.
We now see competition back in the market, which can only be good for those looking for a mortgage. Borrowers must be aware, though, that their credit score is more important than ever. Any missed payments on credit cards or mortgages will make it extremely tough to even get a mortgage.
30th October 2009
In a press release issued this morning by Nationwide’s Chief Economist, Martin Gahbauer, he said that house prices have risen for a sixth consecutive month in October. However, this trend is showing signs of moderating as we head in to autumn.
Martin Gahbauer goes on to say: “The price of a typical property was 0.4% higher on the month in October, compared to an increase of 0.9% in September and 1.4% in both July and August. The three-month on three-month rate of change - generally a smoother indicator of the near term trend – dropped back slightly from 3.8% to 3.4%. At £162,038, the average price of a typical property was 2% higher than a year earlier, representing the first time since March 2008 that the annual rate of change has been in positive territory.”
“Over the first ten months of 2009, the seasonally adjusted index of house prices has risen by 4.6%, though relative to the October 2007 peak it is still down by 13.1%”.
30th October 2009
Northern Rock has launched a range of market-leading fixed and tracker rates during a busy week of mortgage rate changes.
Nationwide, Abbey and Alliance & Leicester are some of the largest lenders to lower mortgage rates. However, Northern Rock has the really low mortgages. They now offer a market-leading two-year fixed rate at 3.69% for those looking to purchase a property. The rate rises slightly to 3.79% if you are looking to remortgage.
Trinity Financial can also secure their clients the lowest Bank of England base rate tracker mortgage on the market. If you are purchasing a property there is a rate of 2.69% and, if you’re remortgaging, that rises slightly to 2.75%. Longer term mortgages are also available, including a market-leading three-year fixed rate at 4.39% or a four-year fixed rate at 4.89%.
Northern Rock mortgages are available to those with a 30% deposit. There is a £595 arrangement fee if you are purchasing a property, or a £995 fee if you are remortgaging.
Aaron Strutt, a broker at Trinity Financial Group, says: “This has been a good week for mortgage payers. Northern Rock’s deals are particularly decent, especially as they are all fully-flexible and available up to £1 million. Many other lenders cap their maximum loans between £250k and £500k. Also, very few are can be re-paid down to £1. Northern Rock will also cover the cost of the property valuation and legals for those remortgaging.”
“Many banks have not lent as much money as they would have liked to this year, including Northern Rock. I am really looking forward to the next few months as more lenders fight it out to attract mortgage business as they try to hit their lending targets.”
16th October 2009
Northern Rock have taken a jump back in to the buy-to-let market with the introduction of lower fixed rates. The nationalised bank will now offer two-year fixed rates for those with a 40% deposit at 5.49% with a 2.5% arrangement fee, or 5.99% with a 1.5% arrangement fee. Mortgages are fully flexible and the rental cover calculation is 120% at the pay rate.
The Mortgage Works, the buy-to-let lending arm of the Nationwide Building Society, have also cut many of their rates by around 0.2% and loosened parts of their lending criteria. Two-year fixed mortgages now start at 4.99% and they are once again available to first-time landlords.
06th October 2009
Over the last few days we have seen more lenders come back in to the market with excellent tracker rates. As the Bank of England base rate started to fall just over a year ago, so did the number of mortgage lenders offering tracker rate deals.
The pick of the new mortgages is from Northern Rock. They now offer a two-year tracker rate at 2.79% for those with a 30% deposit. The arrangement fee is among the lowest in the market at £595. It is also fully flexible so borrowers can overpay their outstanding balance down to £1 and then borrow back any overpayments. The Woolwich have also launched a term tracker mortgage at 2.79% and up to 70% loan-to-value. It has a £999 arrangement fee. Woolwich will also pay the property valuation and legal fees if you are remortgaging. Borrowers with a 25% deposit can access two-year tracker rates starting at 3.29%
Aaron Strutt, a broker at Trinity Financial Group, says: “Northern Rock, The Woolwich and Abbey are the latest lenders aggressively cutting mortgage rates to try and get in more business. Many banks are not hitting their lending targets and, by cutting interest rates, they will attract more business.“
“More of our clients are starting to take out base rate tracker mortgages because the rates are so competitive. It is widely expected that base rate will stay low for the next couple of years and, while fixed rates offer borrowers payment security, there is a premium to be paid for this protection.
“Nationwide are still offering particularly good tracker rates that allow borrowers to switch in to a fixed rate without paying a penalty. Abbey’s tracker rates for homebuyers also cover the costs of property valuation and the standard legal fees. This is something unique in the market and only available through brokers.”
06th October 2009
Trinity Financial is starting to see more mortgages available to those with smaller deposits. Just a few months ago the most competitive mortgage rates were available only to those with a 40% deposit. However, we are now seeing these mortgages available to those with a 30% or 25% deposit.
Northern Rock today reduced their two-year fixed rate for those looking to purchase a property. Borrowers with a good credit score and a 30% deposit can now access a fully flexible two-year fixed rate at 3.75% with a £595 arrangement fee. Northern Rock still look more favourably on those with outstanding credit card debt than many other lenders. This area of their lending policy has not changed recently.
Borrowers with a 25% deposit can access two-year fixed rates starting at 3.99%.
06th October 2009
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Trinity Financial is a trading name of Trinity FG Ltd who is an Appointed Representative of Pink Home Loans. Pink Home Loans is a trading name of Advance Mortgage Funding Limited, which is authorised and regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
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