In the years 1-5 BC (before crunch) it was not unusual for lenders to reach their lending target before the end of the year, and turn off the flow of mortgages.
This year things are a little different, and it could work to the borrowers’ advantage. Lenders were much more cautious earlier in the year, but with a few green shoots showing in the economy and the housing market stabilising, competition is returning as lenders strive to hit targets and gain market share.
Leading the charge is Northern Rock. They have cut mortgage rates 6 times in the last 6 weeks in their effort to lend £4 billion for the year, so if you fit the bill, you can get a better rate if you’re quick.
With interest rate forecasts predicting low rates for some time, more homeowners are choosing tracker rates and Northern Rock has some great examples. Borrowers who prefer the peace of mind of a fixed rate, will be equally well looked after as they have some of the keenest rates on the market, which offer a reduced fee if you’re moving home.
Northern Rock aren’t having it all their own way however, and lenders such as Woolwich, Abbey, Halifax and Leeds have all cut rates this week. To top it all off, L&C have secured some market leading exclusive deals from leading lenders such as Abbey and Alliance & Leicester.
Check out the best buy tables, for your best deal. If you’re unsure whether it’s worthwhile changing from your existing lender, get some help from our new 1 minute mortgage check, or speak to one of our advisers.
Christmas might be coming early this year.