Firstly, we are delighted to have been recognised and ‘highly commended’ in this year’s ‘What Mortgage?’ awards Best Mortgage Broker category. This is a great testament to the team we have and we’re very grateful to all those who have voted for us. We are proud to be in our 28th year in the mortgage sector and look forward to many more!
The majority of clients visiting impact are looking for a longer-term fixed rate, although some are still happy to take a short term tracker rate and are confident that rates will not fluctuate too much in the coming months. There are some good products available with minimal set up costs that have no early redemption penalties at all. So if you wanted to switch products later on, to a fixed rate for example, this could be done (be aware that most lenders charge product fees on fixed rates). Some lenders even offer the ability to do both in the same mortgage offering. Lenders are innovative when it comes to attracting a certain type of business and clientele! But do remember that tracker rates can go up, as well as down. Although currently it does seem to be a ‘race to the bottom’ with regards to pricing.
We’re also seeing lenders look at criteria to attract business, rather than just a low rate. This could be a key part of the mortgage market moving forward. A huge number of people will be ignored by computer technology and credit scoring decision making systems. But this does not mean they should not obtain mortgage finance, it just means they don’t meet all of the rules entered to make that particular decision!
I often wonder if we are on the way back to as it was in 2007/8. Rates couldn’t go much lower then either and criteria played a huge part, then the ‘crash’ happened. Fast forward to today and again rates can’t get much lower and lenders are looking at gaps in the market where a criteria change or tweak might give them the competitive edge.
Who knows what’s around the corner and what will impact the market? But in the meantime, make sure you think about number one and ensure you have the best rates available to you.