Mortgage News - September 2009
Great news with regards to overall lending – this came in at £16 billion in July which is an improvement on the £12.7 billion recorded in June. As I’m sure you have seen, there are more first time buyers coming into the market, with August showing a 36% increase which is a very positive indicator of the recovery of market. We have seen an increase in the number of Agreement in Principle’s issued too over the past few months which as you know are essential if a client is about to make an offer on a property.
Popular deals this week include:
* 1 year fixed rates – these start at 3.79% (APR 3.10%) for clients with 40% deposit, and after the fixed rate period the rate defaults onto a flexible tracker deal where clients can overpay and borrow back. This is a very flexible product and one popular with clients who earn bonus and want to overpay.
* The 4.99% First Time Buyer deal available to 85% (APR 4.10%). This has no tie in period, and allows clients the option to switch to a fixed rate at any time, great for those clients with only 15% deposit. Available to £500,000.
* 2 year fixed rates are still hovering around 3.95% for those with 40% deposit, and 4.18% for those with 25% deposit.
* 3 year fixed rates are still hovering around 4.29% for those with 40% deposit and 4.78% for those with 25% deposit
* For clients who need to borrow £1m plus, the private banks are still offering competitive rates starting at 3.99%