Welcome to the December 2009 Issue of the Mortgage Broker Newsletter
The mortgage market has seen a few changes over the last 4 weeks with the removal of self cert mortgages being the main change. At present there are no ‘pure’ self cert mortgages available as the regulators look to do a review of this segment of the market place which is due to be finalised in 2010. However, there are still mortgages available to the self employed subject to certain criteria being met – mainly a deposit in excess of 25% with bank statements to demonstrate declared income activity.
On the plus side in the residential market, we have seen some fringe mortgage lenders dipping their toe in the water and start lending again. This is great news as the more competition we get the better deals you, the consumer, will get offered. We have also seen some of the high street lenders start reducing some of their rates on the higher loan to value deals which will help first time buyers and some re mortgage cases where rates have been as high as 7.5% for first time buyer s with a 10% deposit.
Unfortunately, there has not been any relaxation in criteria or rates within the Buy to Let market. Once we have an over supply in the residential market, which I am expecting at levels of 75% and below, we should see lenders start chasing market share in the buy to let arena which will bring down margins and fees which are excessively high at present.
Some general market Indicators for you:
House prices continued to edge up in November rising by 0.5%, the latest data from Nationwide reveals. The average house price now stands at £162,764, from £162,038 in October. The average house price is currently at a similar level to where it was in early 2006. House prices are 2.7% higher than in November 2008.
Martin Gahbauer, chief economist at Nationwide, says: “The 3-month on 3-month rate of change dropped to 2.8% from 3.5% in October and 3.8% in September. This suggests that house prices are now rising at a more moderate pace than in the spring and summer months, when they experienced a very strong bounce from the early 2009 lows. The outlook for the housing market is reliant on the labour market, which has shown encouraging signs of improvement.
Only 42% of borrowers opted for a fixed rate mortgage in November as their popularity continues to decline. It is the smallest market share enjoyed by fixed rate products since November last year, and is a dramatic drop from their peak of over 80% just months ago. With the outlook for interest rates little changed over the last month an even higher proportion of borrowers had been opting for variable rate mortgages, in most cases a tracker rate.
The proportion of landlords remortgaging their investment properties has fallen according to Paragon Mortgages. A survey of mortgage brokers found that 39% of landlords obtained a buy-to-let mortgage via a financial adviser for remortgage purposes in the 3 months to September. Still 48% of landlords obtained a mortgage to extend their portfolio in Q3 2009 - a vast improvement on Q4 2008, when 31% of landlords said they had taken out a buy-to-let mortgage to extend their portfolio.
Mortgage Deals of the Month
Every month our advisers scour the whole of the market to bring you what they consider to be the best mortgage deals currently available. As you know lenders change their rates on a frequent basis so don’t hesitate to contact us if you are looking for a new mortgage or wanting to change your existing deal for a better one.
All of the following deals are based on a 25 year interest only mortgage of £120,000 on a property valued at £200,000
The Best Residential Mortgage Deal for December is…
2.49% above the Bank Base Rate for the term of the mortgage (current pay rate of 2.99%)
£299 per month. 70% maximum loan-to-value, ZERO lender arrangement fees added to the loan and FREE legal fees (For re mortgages). The overall cost for comparison is 3.0% APR. There are Early Redemption penalties of 2% in the first 3 years.
To grab this great deal while its still available please call one of our specialist advisers quoting "DecemberDeal" on 0845 6076193 or click here to fill in a brief enquiry form and we will get back to you within 30 minutes.
The Best Buy to Let Mortgage Deal for December is…
3.49% tracker rate above the bank base rate for the term of the mortgage.
£399 per month, £2100 lender arrangement fee (1.75% of loan amount), maximum 60% loan-to-value, the overall cost for comparison is 4.2% APR. An Early Repayment Charge of 6 months interest within the first 32 months.
To grab this great deal while its still available please call one of our Buy To Let specialist advisers quoting "DecemberDeal" on 0845 6010153 or click here to fill in a brief enquiry form and we will get back to you within 30 minutes.
The Best Fast Track / Self Cert Mortgage Deal for December is…
4.39% fixed rate until 31/01/2012, (no proof of income needed, subject to status)
£441 per month, 60% maximum loan-to-value and £499 lender arrangement fees. The overall cost for comparison is 3.7% APR. An Early Repayment Charge of 3% of the outstanding loan is applicable until 31/01/2011 and 2% until 31/10/2012. Free legal fees and a Free valuation also included for a remortgage. The deal then reverts to the lenders Standard Variable Rate of 3.5%
To grab this great deal while its still available please call one of our Self Cert specialist advisers quoting "DecemberDeal" on 0845 6076193 or click here to fill in a brief enquiry form and we will get back to you within 30 minutes.
The Best Offset Mortgage Deal for December is...
2.99% rate above the Bank Base Rate for the term of the mortgage (current pay rate of 3.49%)
£352 per month, 70% maximum loan-to-value and £999 lender arrangement fees. The overall cost for comparison is 3.6% APR. An Early Repayment Charge of 1% of the outstanding loan is applicable until 31/01/2013. Free legal fees and a Free valuation also included for a remortgage. The deal then reverts to the lenders Standard Variable Rate of 3.6%
To grab this great deal while its still available please call one of our Offset specialist advisers quoting "DecemberDeal" on 0845 6033173 or click here to fill in a brief enquiry form and we will get back to you within 30 minutes.
