Following on from my last post, the 'major mortgage lender' who re-priced their mortgage range the day after the Bank of England cut the base rate last week was Cheltenham & Gloucester.
And how have the new offerings gone down? Well, having tried to call the lender today, there was no answer and no answer phone! I doubt the C&G staff are on strike, lets assume the new rates have been very popular and all staff are engaged busily processing applications. Thankfully, we use the lenders fully automated mortgage submission system for brokers which keeps our need to contact the lender by telephone to a minimum.
Hot on their heels and not to be out done, Abbey have today announced a re-price of their entire mortgage range, with rates falling by as much as 0.6% with effect from 10th December 2008. We await the new Abbey products with interest.
What is interesting is to see two major mortgage lenders reduce their rates at 90% loan to value and 85% loan to value. This will help the purchase market.
With so much negative comment surrounding the mortgage market, it is great to see some real competition again among the major mortgage lenders and bodes well for the purchase market. These are the first rate reductions we have seen since September that are aimed at first time buyers and home movers. Up to now, mortgage lenders have focused their attention around the lower risk end of the re-mortgage market and those with very large deposits.
What our recent experience of navigating the market with first time buyers and home movers has shown is that lenders are still using credit scoring to control their business levels. Put another way, not everyone can get a mortgage!
A good mortgage brokers knowledge of the various lenders criteria and credit scoring is of huge benefit to buyers in this market. A brokers knowledge and experience can save disappointment and the perils of 'multiple credit scores'.
As ever, we remain committed to finding the most suitable mortgage to your current needs and demands. Oak Tree Mortgages can be contacted on 0121 733 8833.
