Wednesday, March 25th, 2020
According to research released by Moneyfacts (a company that compiles data that is used throughout the UK Financial Industry), prior to the COVID-19 pandemic, those borrowers or potential homeowners with small deposits now have more product choice than they have had for nearly 12 months.
This is great news for homebuyers who are looking to borrow up to 95 per cent on a mortgage, and it is also a welcome boost for mortgage brokers as they will probably be inundated with enquiries from those looking to secure the very best deal available based on their circumstances, and especially where deposits are limited.
Compared to 2019, the average rate available on a two-year fixed deal had decreased by 0.19%, while rates available on a five-year fixed basis have dropped by as much as of 0.26%. *
The data illustrates that the high loan-to-value (LTV) mortgage market has picked up since the intervention last year by the Prudential Regulation Authority (the part of the Bank of England which is responsible for prudential regulation of banks, building societies, credit unions, major investment firms, and insurers); which is good news for mortgage borrowers.
Market competition among mortgage lenders is not a new thing, but high LTV lending has not been at the top of every lenders’ agenda in recent years. However, some lenders may see this as an opportunity to attract younger borrowers and first-time buyers, who they will hope to be able to keep as customers for many years to come.
Borrowers with restricted deposits may have limited scope given the level of mortgage payments they will be able to comfortably afford, which is why many choose to use the services of a mortgage broker in order to make sure they are able to find the very best deal available to them based on their individual circumstances.
That said, many potential borrowers give up on the chance of ever getting a mortgage without even having spoken to a specialist mortgage adviser like Caboodle Finance.
Undoubtedly, the economic and political uncertainty the UK has gone through over the last few years has put some borrowers off taking out their first mortgage and may also have prevented others with an existing mortgage tying themselves into a better deal. This has been exacerbated in recent weeks with the onset of COVID-19.
However, as many borrowers have now started to return to the market, mortgage lenders are keen to secure their share of that newly available business.
Our team always do their utmost to ensure that clients receive the very best mortgage advice and consequently get access to the most appropriate products.
To understand more about how our friendly approach could help you, call us in complete confidence here at Caboodle Finance of Sutton Coldfield, Birmingham today on 0121 308 9114 or, alternatively, just click HERE to contact us via our website and one of our experts will be in touch.
* Source – Financial Reporter 10/02/20
Caboodle Financial Services Ltd
Mere Green House
46-48 Mere Green Road
West Midlands B75 5BT
Telephone: 0121 308 9114