MONEYTIP
Given the ongoing political uncertainty surrounding Brexit, it is encouraging that buyers and sellers are shaking off some of the prevailing lethargy and getting on with their lives. The political shenanigans have gone on for too long, with no sign of resolution and there is only so long people can put decisions on hold, particularly significant ones such as buying a home. Additionally, if you are looking to remortgage, it is crucial to review your mortgage. It is essential to think about what you’ll do when your current deal ends. Moving onto the lender’s standard variable rate usually results in your monthly payments going up. Check what rates your provider is offering you when your mortgage deal finishes and compare these to other mortgages available on the market. It is useful to know that you can potentially secure a new mortgage 3-6 months before your current deal finishes, and with very attractive mortgage rates available at the moment it may make sense to act sooner rather than later. GARETH LOWMAN, SPF PRIVATE CLIENTS
MONEY MATTERS
T
he gap between two-year and five-year fixed rate mortgages is at its lowest in seven years, according to Moneyfacts.co.uk. The average twoyear fixed rate has fallen by 0.03 per cent from 2.52 per cent in January to 2.49 per cent in June, while the average five-year fixed rate decreased by 0.09 per cent from 2.94 per cent to 2.85 per cent over the same period. This trend does not continue for those looking to lock their mortgage into a 10-year fixed rate. The gap between the average five-year fixed and the 10-year fixed mortgage rates has increased by 0.04 per cent, while the average 10-year fixed mortgage rate has fallen to 3.00 per cent.
3-YEARHIGH
£40,000
T
he number of mortgage applications which were successfully converted into formal offers has hit a three-year high, according to reports from brokers. Between January and March mortgage brokers were able to convert more than 89 per cent of applications into offers which is the highest percentage recorded since these records began in 2016. The figures from the Intermediary Mortgage Lenders Association (IMLA), which represents mortgage brokers, reveal the number of successful applications rose from 76 per cent before the EU referendum. Growth in the number of successful specialist mortgage applications was also strong. It said borrowers who require these kinds of mortgages, who can include the self-employed, who tend to be considered more risky and have been labelled as “non-prime”, had struggled to secure funding since the financial crisis.
The extra amount some first-time buyers can borrow from Sainsbury’s
89%
Of mortgage applications made via a broker are successful
NUMBERCRUNCHING
£3m 147,307
The minimum mortgage offered to Deutsche Bank’s private clients
The number of people who signed a petition for rent history to count in a mortgage application
BESTBUYMORTGAGES
Fixed Rates
Lender
Rate
Until
Reversionary Rate
APR
Max. LTV
HLC
ERC
Product Fee
Exit Fee
Notes
Halifax
1.35%
9/30/2021
4.24%
3.8%
60%
n/a
1.5% / 1.1% until 30/09/2021 10% overpayments p.a. without penalty
£1499 Product Fee
-
Min £250k. Mx £1m Purchase Only
Halifax
1.44%
9/30/2021
4.24%
3.8%
75%
n/a
1.3% / 0.7% until 30/09/2021 10% overpayments p.a. without penalty
£1499 Product Fee
-
Min £250k. Max £1m Purchase Only
Sainsbury Bank
1.80%
6/30/2024
4.49%
3.6%
60%
n/a
5% / 4% / 3% / 2% / 1% until 30/06/2024 10% overpayments p.a. without penalty
£995 Product Fee
£100
Mx £1m Purchase Only
Coventry BS
2.29%
9/30/2029
4.74%
3.2%
50%
n/a
5/5/3/3/3% until 30/06/2029 10% overpayments p.a. without penalty
£999 Product Fee
£125
Mx £2m. Free valuation. Free Legals for remortgages
Source: SPF Private Clients
42 Money.indd 2
19/06/2019 12:45