Our Comment on Mortgage Rate Changes

The  Mortgage Rate Update

Thursday 12th Jan BoE Base Rate Decision

The Bank of England said that Mortgage availability will get harder in the first quarter and nearly every broker on Twitter was telling the world how busy they are (including some not a million miles from here….ahem), so that will be interesting to see where it takes us. America’s economy is getting better faster than expected and where America leads we follow, so let’s hope that will knock on over here, expecially if there is any chance of fixing the Euro.

Here is what I have picked from this week’s Mortgage Rate changes to have a look at, it isn’t all of them but ones I wanted to highlight. There were a few changes with some Lenders positioning themselves for 2012 early doors.

Aldermore – Reduced the Buy to Let range’s rates including a range at 80% LTV to give more completion for The Mortgage Works. These offer 2,3 & 5 year fixes with steps at 65%,75% & 80% LTV and fees from £999 to 2.5% – A good range that extends Aldermore’s reach in to the market and gives another choice at the top of the LTV range for customers in England and Wales.

Mortgage Trust – A smaller range (Buy to Let), high (3%) arrangement fees without the rates to back that up, not likely to catch anything but criteria driven business. MT also reset their LIBOR rate at 1.1% relevant as they use this variable more other lenders.

Coventry Building Society – A really strong range of Residential rates from the Coventry, they are showing an appetite to lend and have a wide range with everything from a 5 year fix from 3.58% and low fee deals. Coventry also offer a free valuation (up to £670) on purchase deals and their buy to lets have fixed fees and a remortgage package available which can outweigh lower rate/higher fee deals elsewhere, the whole range will be in the mix.

Paragon Mortgages – (Sister company to Mortgage Trust and also Buy to Let) in similar fashion changed its range and is not going to win any low rate prizes with this range. A portfolio customer can have any number up to £5M which could be useful if really stuck.

If you want to have a look at more click on the Mortgage tab for best buys or to start your own search.

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