This year has seen the market stabilise to an extent but exciting new mortgage rates have been thin on the ground. Although there has been some gradual improvement in the mortgage deals on offer there has been a distinct lack of competition between lenders. This has certainly been a contributory factor in maintaining the higher margins on products despite some easing in money market rates.
However, the last two weeks has seen lenders such as Abbey, Barclays, Nationwide and Northern Rock all cutting rates on both fixed and tracker deals. Perhaps even more significant is the fact that there have been clear cases of jockeying for position, which indicates an increase in lender appetite.
In fact, Nationwide and Northern Rock have both repriced their range twice within the last two weeks and the end result is some market leading mortgage deals.
Although this is extremely encouraging the biggest improvements have been focused on those borrowers that can put down a large deposit or have a good chunk of equity in their property. The interest rates on products at higher loan to value remain significantly higher.
Still, it is nice to see some much needed competition back in the market.