The mortgage price war continues apace, and the Sunday Times revealed this weekend that more borrowers are considering paying Early Repayment Charges to break their existing mortgage contract in order to move to a cheaper deal. With rates at record lows, and edging down on a weekly basis as lenders fight for the best buy top spot, homeowners could find they are able to cut their rate significantly enough to cover their penalty charges as well as locking into a longer term cheap rate.
Despite deals getting cheaper, the Times and Sunday Telegraph both reported on recent figures from the Council of Mortgage Lenders which reveal a drop in lending of 14% between December and January. Brokers say thousands are still being turned down for applications as they struggle to meet the tougher lending criteria now in place. First Time Buyer numbers, however, are on the increase, with over 300,000 taking out a mortgage in 2014 – the highest figure for 7 years.
Elsewhere, the Mail on Sunday looked at smaller lenders who can often offer a more flexible attitude to assessing a borrower’s application than the bigger high-street banks. Many of them take a more ‘common sense’ approach to underwriting when it comes to age, employment type and income structure – all factors which could see borrowers rejected by mainstream lenders.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE