Yes the credit crunch is still upon despite what the banks and governments would have you believe. Over the past few years thousands of mortgage products have been pulled off the market although the numbers are starting to gain traction again. With the number of products increasing but changes in the ways lenders approach providing mortgages how do you go around finding the right product? Well let's start with what's happened recently.
Recent changes in the market
Over the past six months or so lenders have been actually cutting mortgage rates on many of their fixed term products. But the product and arrangement fees have been increasing so at the end of a fixed rate loan the standard variable rate or svr is actually much higher than it used to be. So long gone are mortgage rates at 0.5% or 1% and you'll find some svrs as high as 5% now. So that's an area to check out - rather than be enticed by and up front low rate for 2 years also check the svr at the end because in 2 years time your circumstances may have changed and you may need to stay on the svr for a few months or years.
Product fees and arrangement fees have also increased. Long gone are the days of £100 arrangement fee which you could negotiate down to zero and many are now over £1000 although some banks do have special offers so check those for more information.
What can you do to get through the maze ?
One particular site of interest publishes daily updates on all the latest mortgage products that are on offer in the market place through their mortgage news section. This provides all the new deals that lenders have added in the market or the new rates on existing products. These do change on a daily basis and with the slight relaxing on lending not only are new rates being introduced back into the market but also higher lending percentages as well.
Before the credit crunch it was easy to get 100 percent mortgages but these went right down to perhaps 60% or 70% from just a few lenders but now you can get 80% or even 95 percent mortgages from many lenders in the market and more and more are coming on board as governments stress the importance to banks for lending more in the future to homeowners and businesses.
So our advice if you are in the market for a new mortgage or to remortgage your current home is to check with the up to date news that comes out each and of course to consult a professional mortgage adviser.
Recent changes in the market
Over the past six months or so lenders have been actually cutting mortgage rates on many of their fixed term products. But the product and arrangement fees have been increasing so at the end of a fixed rate loan the standard variable rate or svr is actually much higher than it used to be. So long gone are mortgage rates at 0.5% or 1% and you'll find some svrs as high as 5% now. So that's an area to check out - rather than be enticed by and up front low rate for 2 years also check the svr at the end because in 2 years time your circumstances may have changed and you may need to stay on the svr for a few months or years.
Product fees and arrangement fees have also increased. Long gone are the days of £100 arrangement fee which you could negotiate down to zero and many are now over £1000 although some banks do have special offers so check those for more information.
What can you do to get through the maze ?
One particular site of interest publishes daily updates on all the latest mortgage products that are on offer in the market place through their mortgage news section. This provides all the new deals that lenders have added in the market or the new rates on existing products. These do change on a daily basis and with the slight relaxing on lending not only are new rates being introduced back into the market but also higher lending percentages as well.
Before the credit crunch it was easy to get 100 percent mortgages but these went right down to perhaps 60% or 70% from just a few lenders but now you can get 80% or even 95 percent mortgages from many lenders in the market and more and more are coming on board as governments stress the importance to banks for lending more in the future to homeowners and businesses.
So our advice if you are in the market for a new mortgage or to remortgage your current home is to check with the up to date news that comes out each and of course to consult a professional mortgage adviser.
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