Market rates flat with complex mortgage landscape
I am back from a lovely week off, refreshed, tanned and even with a proper haircut (the longer hair thing just wasn’t working for me…) I rolled the dice and booked a holiday by the seaside for half term with the international travel situation being such a mess at the moment. Thankfully the weather was amazing and we got to sample the delights of Whitstable, and a few other places along the north coast of Kent. I have 2 young daughters so they don’t really care if they are in Kent or Cancun, that is more of an issue for me and Mrs Campo…
While the holiday was great, I can’t say it was relaxing. The week was beset with work issues, some small, some large, but certainly nothing insurmountable.
Just the same theme I have talked over in recent weeks, in that lenders are being very difficult, and getting deals over the line is very hard work. As even once you get past the mortgage being approved, it seems the lawyers are slow, chains are difficult and everyone wants everything done yesterday…
I don’t mean to appear to be negative, but I think it is only fair to inform people of the landscape they are looking to navigate even if market rates are flat. I think if anyone hasn’t already got a purchase application underway, it will be extremely hard work indeed to get everything done ahead of the stamp duty deadline. That said, if there is a way of getting it done, it will be by having a great broker in your corner!
Core Principles of Lending
I am doing a 3-part series in the core principles of lending. This week, we look at the last aspect, which is – Collateral.
It is an often overlooked aspect of the process, but the very definition of a mortgage is a loan secured against a property! So in this final part of the series I talk about this in a lot more detail as you may not appreciate what lenders look for in a property. I also try to debunk some misconceptions so if you are looking for a property currently, it may be useful reading.
House Price Growth Hits Double Figures
Nationwide Building Society released figures last week which showed house price inflation had hit the highest level in 7 years, with annual prices growing at 10.7%. Month on month growth was 1.8% (which is actually down from 2.3% for the month prior).
Nationwide chief economist Robert Gardener says: “The market has seen a complete turnaround over the past twelve months.
“A year ago, activity collapsed in the wake of the first lockdown with housing transactions falling to a record low of 42,000 in April 2020.
“But activity surged towards the end of last year and into 2021, reaching a record high of 183,000 in March.
“While March’s spike in transactions was driven by the original end date of the stamp duty holiday, a lot of momentum has been maintained.”
We Want To Hear From You!
We are very grateful to be one of the highest rated mortgage brokers in the UK, accordingly to Google, so thank you for everyone that has reviewed us so favourably over the years, but we would love to take things to the next level. If anyone is willing to send us a picture of them in your home, or better still, a short video, explaining how we helped you, I would personally be extremely grateful.
Feel free to WhatsApp/Text me directly on 07825 525595, which is often the easiest way to do this, or feel free to email me and we can collect the info that way.
Market Rates Corner
Market rates pretty flat again as they reversed the movements we saw last week. We are still seeing many lenders reduce the interest rates on their products, especially if you have a smaller deposit.
So our default position stands, unless you have any specific needs, we would most likely recommend a longer term fixed rate if you have a 25% + deposit, but keep it short term or flexible if less than that figure.
In the last week:
3 Month Sterling Libor = down 0.004% at 0.077%
2 Year SWAP = up by 0.007% at 0.322%
5 Year SWAP = up by 0.010% to 0.714%
Bank of England Base Rate = Held at 0.10%
Best Market Rates
2 Year Variable from 0.99%
2 Year Fixed Rates from 0.99%
5 Year Fixed Rates from 1.21%
BTL Rates from 1.19%
The actual market rates you will be offered will be dependent on your personal circumstance and deposit level. Please speak to one of our advisers so that they can guide you through this process
Source: Twenty7Tec June 2021
If you would like any help or advice on mortgages or market rates please contact one of our expert team.
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Rose Capital Partners Limited is an appointed representative of PRIMIS Mortgage Network, a trading name of Advance Mortgage Funding Limited which is authorised and regulated by the Financial Conduct Authority.