The number of mortgages available for borrowers has increased by 34 per cent since April 2012 when the Bank of England’s funding for lending scheme was announced. Research by Moneysupermarket.com also shows fixed rate and tracker mortgage rates are falling alongside increase availability.
The number of mortgages available for borrowers has increased from 2,458 to 3,288 products since April 2012. The total number of products available at the highest levels since August 2011.
The number of 60 per cent loan to value products available has almost doubled from 285 to 553 over the last 12 months.
Similarly, 80 per cent LTV products have seen a 48 per cent increase and 75 per cent LTV mortgages have increased by 30 per cent.
It is great news for those looking for high mortgage finance as the cost of mortgage loans has fallen significantly. It means that borrowers are more likely to get deals with a wider selection on offer and at a cheaper rate.
Thanks to the funding for lending scheme it is the clearest sign yet that the mortgage market is beginning to heal.
Big deals
For large mortgage loans there is a better market on offer and more savings to be made as choice widens. Speaking to a mortgage broker is the best way to scour the market with a qualified and regulated adviser as your guide.
A broker can tell you whether you would be better with a fixed or a variable with an impression on the direction of travel on interest rates.
Rates on two-year fixed mortgages have dropped from 4.21 per cent in April 2012, to 3.28 per cent now.
Rates on five-year fixed mortgages have also fallen from 4.67 per cent to 3.84 per cent.
They can also guard against the pernicious rise in hidden fees that have accompanied such large drops over the past year.
Moneysupermarket says the average total fees for a two-year fixed mortgage has risen from £1,170.50 to £1,393.17, a 19 per cent increase since April 2012.
The average fee on five-year fixed rate mortgages has risen by 22 per cent, from £996.83 to £1,218.13.
If these fees are rolled up into the mortgage and then charged with interest they can be very costly indeed.
Brokers are trained to spot lender tricks and hidden fees and could save you a bundle by simply removing some of the opacity that so often surrounds financial products.
Bigger market
With Government interventions in the form of funding for lending or its Help To Buy scheme that will help borrowers with deposits there is a growing optimism in the mortgage market.
Responsible lending rules are almost in place to prevent the excesses of the boom and lenders are beginning to become more confident within the new framework. The new market has made mortgage brokers more crucial than ever for those looking for large loans.
There are some great long-term deals to be had and brokers are the best people to find them for you in areas such as interest-only.
Deals are cheaper and more widely available but if you are looking for a specific mortgage to suit your needs a broker is still your first port of call.
