14:44 PM, 27th October 2010, About 13 years ago
Independent mortgage advisers have thousands more loan products to choose from across the market than direct providers like banks and building societies.
Independents could source mortgages for clients from an August average of 4,545 products – up 19% from a July average of 3,807 – while direct lenders could select from a restricted range of 1,505 loans – up 7% from the 1,401 available in July.
The figures come from a whole-of-the-market report compiled by mortgage sourcing software specialists TrigoldCrystal.
David Aylmer, the firm’s business development and marketing director said: “The fact that seven times as many more intermediary products than direct have been introduced into the market over the last month does lend itself to the view that things are changing for the better.
“With greater competition should come reduced pricing and hopefully this will bring a degree of parity between intermediary and direct product pricing.”
Meanwhile lenders are cutting interest rates and introducing more new buy to let mortgages as property investors call out for more finance to take up the slack of homes supply in the student and private residential sectors.
One lender has just opened applications through brokers for a range of four-year fixed rate buy to let deals.
The headline rate at 60% loan to value (LTV) is 5.49% fixed for four years – the loan offers the current best fixed rate buy to let loan over four years – but also comes with a £2,157 arrangement fee that is higher than any costs charged by rival lenders.
Higher fixed rates are offered at 65% and 70% LTV.
Big high street lenders like the Halifax, Nationwide and Coventry Building Society have also announced rate cuts in line with the Bank of England retaining base rates at 0.5% – and will probably stay there until well in to 2011.
Several specialist lenders have launched investment mortgages for buy to let landlords – including a new loan attractive for commercial borrowers. Commercial best buys for owner occupiers come at 2.25% variable over bank base (2.75%) with 80% LTV. The same deal is at 70% for investors. Both packages are available from £50,000 to £40 million.
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