With the Brexit fallout and inevitable economic confusion over the new direction the country is heading in still at the forefront of people’s minds, I’m seeing my clients attention turn sharply to their own finances. “What do you think will happen over the next 6 months?” “Will lenders put up their rates?” “How is this affecting lenders affordability criteria?” “Will my property go down in value?”
This is just a small selection of the questions I have had from my clients since this time last week. Now while none of us can predict the future with any real certainty, there are two fundamentals worth remembering in these uncertain times. Firstly borrowing has never been cheaper, and secondly London property will continue to be one of the most appealing options for investors in the UK and around the world. If you are lucky enough to own property in London you can be confident that any dip will be short term and, five years from now, this will seem a distant memory. With that said and with the cost of borrowing being at a historic low, there is a real opportunity to secure extremely favourable terms.
Our products of the week – the fantastic tracker deals now available – have been researched and analysed in this unique economic situation. On offer is a two year term at base rate + 1.29% for loans between £1,000,000 & £5,000,000 with fixed product fees (£1,999 max). Striding out ahead of the competition, this lender is able to offer qualifying customers a generous 5.5 time income multiple along with free legal work and a heavily subsided valuation. Interest only using the property itself as the repayment vehicle is no problem up to 50% loan to value (LTV), with the ability to up any additional borrowing requirements to 70% LTV using a capital repayment top-up. They are also able to offer a lifetime tracker with all the same great features at a slightly higher margin if you would prefer not to renegotiate your mortgage at the end of the product term. Here at Enness our job is to get you the best possible terms by scouring the market and this is proving to be tremendously popular with my clients.
Given the loan size discussed my clients generally have to accept their interest rate being loaded as compared to smaller loans. What makes this particular product so competitive is that this is not the case with this range at the minute. How long this will last is uncertain but for those who are able to make financial decisions, now is not the time to follow the crowd. In times of difficulty, opportunity often presents itself and this product is certainly that for those looking for a larger loan. What’s more, having taken in Mark Carney’s speech early this week and his comments on the easing of monetary policy in the short term, my view is this variable rate product could become even more attractive and with it demand will inevitably go up. At that point it’s uncertain if the product will remain as favourable so now is the time to get ahead and be bold with your mortgage. Doing nothing is as much of a choice as doing something and in the long run the former could be an expensive decision.