A price war amongst mortgage lenders is good news for people coming to the end of their mortgage deal or those applying for a mortgage for the first time.
Competition amongst lenders has intensified over recent months, as they vie to gain a larger slice of the mortgage market and attract more applicants to use their products.
It’s not just amongst the high-street lenders but new entrants such as Atom Bank, who are cutting interest rates and releasing new products.
Figures from Mortgage Brain, which provides a mortgage sourcing service for mortgage intermediaries, show the number of products available to brokers has grown 108% over the past two years.
The 90% loan to value segment of the market has seen the strongest performance with 443 products now available, which is good news for first time buyers and those who are struggling to save for a deposit.
“This is positive news for mortgage holders and those looking to get their first mortgage. With a wider range of products on the market, mortgage brokers have more opportunity to find their client the right mortgage and take advantage of lower interest rates,” says Michelle Niziol, CEO, IMS Property Group.
Lender’s standard variable rates typically range from 3% to almost 5% currently, which is significantly higher than the fixed rate deals of circa 1% available.
With the Bank of England recently giving its biggest hint yet that it may raise interest rates in the coming months, due to higher than expected inflation figures, mortgage holders would do well to review their mortgage deal now.
“If you are coming to the end of your mortgage deal, make sure you arrange to see a mortgage broker and find out what your options are. You could save on your monthly mortgage payments by switching to another mortgage product and the savings could go into the hundreds of pounds,” says Michelle.