The Mortgage market is super-competitive right now.
Tesco decided that they could not achieve their required level of profitable lending in the current market and exited the mortgage scene completely with their sale to Lloyds. The banks are awash with money to lend in the domestic market following the recent regulatory moves to ring fence their retail domestic banking from their international and investment banking units. Bank capital which would in the past have found its way into riskier investment banking has to be used within the domestic market – and banks have been competing hard for mortgage lending to the benefit of UK home buyers and those re-mortgaging.
The latest figures from UK Finance and the Bank of England show mortgage approvals up to their highest level for two years in July 2019 with 67,306 loans approved and the biggest ££ increase since March 2016. This suggests that despite our politicians making a hash of Brexit and the forecasts of doom and gloom from ‘the experts’, people are getting on with buying, selling and re-mortgaging, taking advantage of super competitive rates. The availability of mortgage lending underpins the market and suggests to us that house prices will continue to bob along and rise gently, especially in the lower and most affordable price ranges.
So it’s a good time to buy and sell in the Autumn market.
Another interesting development has been the emergence of really long term fixed rates.
Yorkshire Building Society is the latest to launch a 15 year fixed rate deal, starting at 2.79% for those borrowers with a 35% deposit.
Virgin Money also has a 15 year deal, with rates from 2.55%. 10 years mortgages are also available from a number of lenders, with the average rate now costing just 3.01% compared to 5.09% five years ago. The only word of caution is that early redemption charges apply, so make sure you really do plan to lock in for the longer term.
If you want to know more about any of these deals, just give us a call on 01983 525710 or look now on our website under Mortgages.
Main image of Lloyds bank courtesy of Reuters the news and media division of Thomson Reuters, the world’s largest international multimedia news provider reaching more than one billion people every day.