Mortgage Update

Mainstream mortgage lending has not changed a great deal recently and has suffered from lenders leaving the market place, restricted funding streams and an apparent lack of product innovation.

To obtain the very best mortgage deals often entails careful shopping around and a professional mortgage adviser can really help in this regard. With Bank of England Base Rate remaining static at 0.5% since March 2009, some lenders have reduced interest rates for good loan-to-values. Illustrated below is a small sample of the types of loan-to-values and the interest rates that are currently available from a variety of mortgage lenders, not all of whom have a high street presence;

Loan to Value Interest Rate Fixed or Tracker Number of Years
80% 3.69% Fixed 2 years
80% 3.99% Fixed 5 years
70% 3.09% Fixed 3 years
70% 3.39% Fixed 5 years
60% 2.49% Fixed 2 years
60% 4.58% Fixed 10 years

(Source: Mortgage Brain Sourcing 22/10/12)


Loan to Value Interest Rate Fixed or Tracker Number of Years
80% 3.49% Tracker 2 years
80% 3.49% Tracker 5 years
70% 2.88% Tracker 2 years
70% 2.99% Tracker 5 years
60% 2.79% Tracker 2 years

(Source: Mortgage Brain Sourcing 22/10/12)

I think the figures quoted above really demonstrate that with many lenders’ Standard Variable Rates (SVRs) now being well over 4%, there is a real opportunity for many people to effect a remortgage on their property and, certainly with regard to some of the fixed rates, secure a very attractive interest rate for the foreseeable future. It should be remembered that some of the specific mortgage deals on the market do carry set up costs and potentially legal and/or valuation costs, although some deals are available with some of these costs elements included free of charge.

Aside from sourcing the very best deal available to you, a professional mortgage adviser’s skill and value lies in being able to position your case clearly and effectively with the selected lender, in order to highlight the merits of the case and thereby negate the need for a potential stream of additional questions coming back from an underwriter, which can waste time could result in a deal falling through.

Of course the qualifying criteria for each specific mortgage can change at any time and being fully up to date with the latest developments is vital to ensure successful mortgage applications.

Is it time you looked again at your own mortgage and see how it measures up against the current rates offered in the market?

Kerry Chaloner, Financial Planning Consultant, Leeds

E: T: 0113 2211 300


Investment values can fall as well as rise and you may get back less than you invest. Past performance is not a reliable indicator of future results.


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