Published: 28/06/2021 By ADRIAN ANDERSON, ANDERSON HARRISHow the mortgage market is shaping up
In this short overview Adrian Anderson of Anderson Harris explains how the mortgage market is faring as lockdown restrictions ease.
Current mortgage rates highlight a case of the haves and the have-nots.
Re-emergence of 90+% mortgages
90% mortgages disappeared during the pandemic when lenders were concerned about a collapse in property values. Fortunately this crash didn’t happen, so mainstream lenders have re-introduced 90% and even 95% mortgages. The interest rates on these are still expensive compared to pre-March 2020. Reassuringly though the rates of 90% mortgages are just starting to creep back to below 3%.
The bigger the deposit the better
For borrowers who are looking to borrow circa 60% via a mortgage with mainstream lenders for a main residence, the rates are about as cheap as we have ever seen them. 2-year fixed rates have just crept below 1% and 5-year fixed rates are only just above 1%. If you have the cash for a sizeable deposit, it’s certainly a good time to take advantage of the cheap interest rate environment.
The growing appetite for independent advice
More borrowers are now seeking independent advice. This is because everyone has different personal circumstances and lenders have different criteria. As a result of the pandemic, banks are scrutinizing more to ensure applicants fit their current lending criteria. In some scenarios the criteria are stricter. The banks do, however, have strong balance sheets and an appetite to lend. Anderson Harris are experienced specialists in this area and are helping borrowers to find the best deal for them.