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Mortgage Wars

Capital Fortune predict a lender rate war over the forthcoming months and indicate that mortgage interest rates may be set to be the lowest for a lifetime. We have seen a number of regional lenders enter similar spaces to each other, entering more specialist lending over the last couple of years in order to increase volumes and margin. The competition in previous niches is now significant and the increased volumes now only seem sustainable by a focus on lower interest rates, slashing margins.

As they realise business can no longer be obtained by offering similar criteria to their peers they have no other options than to reduce rates and those lenders not offering retention to existing borrowers, see an exodus and customer movement at the end of each incentive deal.

For some lenders, margins are protected, where they have a high standard variable rate. This is the rate borrowers ultimately go on to at the end of their initial incentive deal.

Borrowers need to be far more vigilant and fully consider the final variable rate they will revert to once any new customer deal ends. Some products have variable rates as low as 1.64% (Godiva) whilst other lenders have products as high as 14.5% (Together).

In talking to lending partners, despite lending being at record levels, many providers are struggling for business and have already commenced the process of lowering fixed rates, despite indications from the Chancellor that Bank of England rates are set to rise.

This is an interesting development and we wait with a raised eyebrow, to see how far to the bottom, many lenders are willing to push rates down. The major beneficiary for this phenomenon are mortgage borrowers, but many savers, may soon start looking elsewhere for proper, higher rates of return.

UK Expat Mortgages in Qatar

The challenges for UK expats in Qatar just got worse. A further two U.K. Mortgage lenders have also announced that they are removing Qatar from their lists of acceptable countries for mortgage applications. Importantly, this is with immediate effect. The lenders, one an offshore Bank, one a regional building society, cite the climate of politico- economic uncertainty. 

The Uncertain Aftermath of the 2017 Election

The Hung Parliament result from the 2017 General Election was an outcome very few predicted.

After a poor campaign from the Conservatives, combined with a surge of grassroots and young support for Labour and Jeremy Corbyn – neither party achieved a majority – leaving the nation in uncertainty. Who knows what will happen next?

Brexit And The Mortgage Market

March 29th saw the triggering of Article 50 in the UK. In doing so, a period of uncertainty is expected within the mortgage market. The economy, domestic political issues, the stock markets, inflation, house prices, property, the retail sector – all are now being viewed through the Brexit prism, all judged in relation to Brexit and its potential consequences.

Motivation to Remortgage Highest Since 2008

Mortgage rates may be showing signs of rising, but that shouldn't dampen borrowers' desire to remortgage, particularly those coming to the end of a fixed two-year term. Indeed, our latest figures show that motivation to remortgage has hit its highest level since 2008, and by all accounts, it's only going to increase in the months ahead.

Building Society Rates Lower Than Banks

Competition is still fierce in the mortgage market, and with many high street banks claiming to launch the cheapest products ever on their records, many borrowers could assume that the mortgage rates from these providers will be significantly lower than those offered elsewhere. However, our latest research shows that things aren't always as they seem, as building societies are the clear winners when it comes to the mortgage rate war.

Capital Fortune Conference 2016

On 1st December, Capital Fortune held its first annual conference, with the focus being on digital and mutual lending within the 21st century.

What Does Brexit Mean for Britain?

The results from Newcastle last night around midnight, were the first indication that all was not well with the Remain vote. The North East powerhouse was predicted to be a strong Remain supporter given the high student population but when the result came in 50.5%/49.5%, it was clear the Remain vote may not hold up nationally.

Building Societies Offering Better Interest Rates Than Banks

Many banks have taken advantage of the Government's Funding for Lending scheme to fund their mortgage books in recent years, and a lot of those still have a significant sum of cash left to use.

First Time Buyer Purchases hits 2 year high

We are pleased to report new research indicating that First Time buyers are at the highest on record for almost 2 years.

First Time buyers have found it difficult to get onto the property ladder, given average incomes in relation to house prices. This is particularly so in London and the South East. It is refreshing to see new research which therefore suggests that an increasing number are able to get over the obstacles and get on the property ladder. During April the number of First Time Buyers obtaining first time buyer mortgages were the highest seen since 2014.

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