The Christmas sales have come early for high net worth borrowers, reported both the Times and FT this weekend, with news that a price war has begun amongst lenders competing for large loan business.
Industry experts suggested that there has been a slowing down at the higher end of the market since the introduction of higher stamp duty charges, and banks and building societies are therefore trying to tempt more business in through their doors by offering some of the lowest rates on the market.
Elsewhere the Mail on Sunday took an interesting look at unconventional mortgage applications– whether that be because of a borrower’s income, or the type of property to be mortgaged. The good news is that there are lenders willing to take on homeowners, even if they are considered outside of standard criteria.
Unusual properties could include windmills, eco-friendly builds, and church conversions – but as highlighted in the article, from a lender’s point of view, it all comes down to desirability and saleability.
Evidencing income can be difficult for the many people on temporary or zero-hour contracts, or those who have recently changed jobs. The key here is to be able provide proof of regular income over the last 2-3 years, or to look at a more specialist lender who can be more flexible.
What the papers said about large loans and unusual applications