The range of mortgage options in the UK is greater now than at
any time since the start of the banking crisis indicating that the UK
property market is on the road to recovery.There are now nearly 3 times
as many mortgage products on offer than there were in mid-2009 when the
choice was at its very lowest; there are now over 10,000 mortgage
products available to borrowers in the UK. This range of mortgage
choices at competitive interest rates is an indication that banks and
other lending institutions are competing for the business of borrowers,
which suggests that lenders are increasingly confident about the state
of the property market. The easy availability of competitive mortgage
deals, in turn, will generate activity in the housing market and further
boost confidence in it.
But just why is the choice of mortgage deals improving when there is still a long way to go to secure economic recovery?
To a large extent it is because lenders can obtain low cost funds via the government's Funding for Lending incentive scheme and this, consequently, means that banks can offer a wide choice of mortgages at better rates than previously.
Research by a leading mortgage broker revealed that mortgage customers in the UK have started to borrow more both for new mortgages and for re-mortgages, with rises of over 6 per cent in the first half of 2013, which in part is due to the loosening of earlier stringent lending and affordability criteria. Ultimately for anyone wanting to buy a home this greater choice of mortgages at low rates is good news.
So the results of the government's Funding for Lending scheme seem to have produced the desired effect of reducing the cost of mortgages and making them easier to secure. Banks and building societies in the UK continue to release new home loan products and a range of special offers to encourage more and more borrowers to apply for a new mortgage. And more and more borrowers are doing just that.
As well as the mainstream lenders offering a wider range of mortgage deals there has also been an influx of smaller, lesser known lender sentering the mortgage market and this has continued to create competition. The very best interest rates are still, understandably, available to high value mortgage clients with a large deposit but there are also indications that the choice for first time borrowers is also improving.
This is, in part, due to the government's other scheme Help To Buy but also due to competitive deals on offer by small building societies outside the scheme, which can be accessed through specialist mortgage brokers. 2013 saw some of the lowest ever interest rates available to high value mortgage consumers but it is likely that rates are now at rock bottom for both those seeking large mortgages and for first time buyers so while the range of deals may continue to improve it is unlikely that headline rates will fall any further than their current level. So for anyone considering buying a new home now could be the perfect time to act.
Source
But just why is the choice of mortgage deals improving when there is still a long way to go to secure economic recovery?
To a large extent it is because lenders can obtain low cost funds via the government's Funding for Lending incentive scheme and this, consequently, means that banks can offer a wide choice of mortgages at better rates than previously.
Research by a leading mortgage broker revealed that mortgage customers in the UK have started to borrow more both for new mortgages and for re-mortgages, with rises of over 6 per cent in the first half of 2013, which in part is due to the loosening of earlier stringent lending and affordability criteria. Ultimately for anyone wanting to buy a home this greater choice of mortgages at low rates is good news.
So the results of the government's Funding for Lending scheme seem to have produced the desired effect of reducing the cost of mortgages and making them easier to secure. Banks and building societies in the UK continue to release new home loan products and a range of special offers to encourage more and more borrowers to apply for a new mortgage. And more and more borrowers are doing just that.
As well as the mainstream lenders offering a wider range of mortgage deals there has also been an influx of smaller, lesser known lender sentering the mortgage market and this has continued to create competition. The very best interest rates are still, understandably, available to high value mortgage clients with a large deposit but there are also indications that the choice for first time borrowers is also improving.
This is, in part, due to the government's other scheme Help To Buy but also due to competitive deals on offer by small building societies outside the scheme, which can be accessed through specialist mortgage brokers. 2013 saw some of the lowest ever interest rates available to high value mortgage consumers but it is likely that rates are now at rock bottom for both those seeking large mortgages and for first time buyers so while the range of deals may continue to improve it is unlikely that headline rates will fall any further than their current level. So for anyone considering buying a new home now could be the perfect time to act.
Source
