Now is the time to review your mortgage

Interest rates are at an all-time low and lender competition is growing. With the economy growing and unemployment reducing there will soon be pressure on the Bank of England to increase the Bank of England base rate – now is the best time to review your mortgages. Here are a few reasons:

 Products and Rates

    • There are more mortgage products available now than at any point in the last 5 years.
  • There are over 60 main stream mortgage products with initial rates under 2%.
  • Private Banks are super competitive – we have seen pricing under 1.5%
  • 95% loan to value mortgages are coming back  (if its right for your circumstances) – you can secure products at this high loan to value at less than 5%

Help To Buy and High LTV

Help to buy has opened up the near dormant first time buyer market and many of the main lenders have entered this market. This has spurred lenders who chose not to accept the H2B scheme to compete with their own 95% products. Always speak to your bank but we will recommend the best product from every lender.

Don’t forget – this is available for home movers, not just first time buyers. The maximum property price is £600k so expect to see a super competitive property market in this area and very good capital appreciation as a result.

Interest only

After a couple of years of interest only being akin to evil and suffering a media onslaught we are starting to see its re-emergence as a mainstream product, albeit at restricted LTVs. The Mortgage Market Review (April 2014) will set the rules and allow interest only to be used if justified.

That aside, private banks and specialist lenders still offer interest only up to 85% loan to value – the key is justification and your ability to repay. Speak to us to establish exactly how we can structure the mortgage to best suit your needs

New lenders

Last few years have seen a couple of new lenders enter the market – these have now found their feet and are becoming major players. In addition there are over 20 new lenders waiting in the wings to launch having had their permissions granted by the FCA – this means more competition which is leading to relaxing criteria and innovative new solutions – excellent news for the mortgage market.

Relaxed criteria

Did you know we can:

  • Use 100% of bonus income
  • Lend using trust, offshore and complex income
  • Offer interest only mortgages up to 85%
  • refinance portfolios and high value single properties
  • Offer bridging and commercial finance if it helps the transaction

 Buy to let Lending

 This is set to be a major part of the mortgage scene for years to come – although rental yields are low in some areas (especially prime central London) there is an expectation of significant capital growth. Lenders are open to lend up to 85% loan to value and one or 2 lenders will offer a 100% rental coverage for the right client. We can also cross secure or hold rent on deposit to help deals stack up

So, now is an excellent time to review your current circumstances or to invest in property – our advisers are free to speak when you are – to book an appointment please call or email.

Arrange to speak to an Enness Broker