The price war continues as three more lenders reduce their rates.
Nationwide, Virgin Money and Precise Mortgages have all cut rates as they try to lure customers to their attractive propositions.
This is really great news for the end customer as there are some very attractive and competitive rates out there in the run up to Christmas.
Highlights across the market include 5 year fixed rates at sub 3% rates and shorter 2 or 3 year fixeds with minimal or no fees.
This really is a great time to review rates and see if a change of mortgage lender will save you money.
It’s not just the prime side the rate war is affecting.
For those who have had previous financial issues with their credit, the lenders who cater for this sector (normally called Near Prime) have also lowered rates as demand increases for these types of mortgages.
There are many lenders re-lending in this arena and they will cater for a missed mortgage payment in the last 12 months, historic defaults, County Court Judgements (CCJs).
A limited few will also consider those who are discharged bankrupts, had IVAs or who are in a debt management plan.
There’s no denying that this area of the market took a battering back in 2007 as many, many lenders who offered these types of mortgages were shut down or mothballed.
However, the regulatory lending restrictions are now more stringent than back then and the new breed (some never really left) have a whole new outlook on the term ‘responsible lending’.
But where there is demand, there will always be supply.
Rates range from late 3%s, right up to double figures depending on individual circumstances.
Finally, the Near Prime lender tends to be a ‘stepping stone’.
Most issues usually disappear from a credit search after a few years.
Therefore, the aim would normally be to cater for current requirements on a short to medium term basis with the longer term outlook being structured to enable the customer to get back onto high street mortgage offerings, as quickly and cost effectively as possible.
Terms and conditions always apply and always best to seek professional advice.
Dale Jannels - AToM director