Mortgage Finance Update
Well January is firmly underway, it is the 23rd already and we have been extremely busy.
This month we went to meet our new reception team at 45 Pont Street in Knightsbridge which is the location of our new London office. The London mortgage broker office gives us an excellent base from which we can meet our London and international clients. The offices are located near Knightsbridge tube station and just a stone’s throw from our old haunt of Sloane Street, ah the memories!
In terms of business we have been inundated with new enquiries including many First Time Buyer mortgage enquiries. The market really is alive from the lower end of the market to the top. Help to Buy is in full swing too with more lenders now entertaining the scheme. The best terms are at 4.99% for a 2 year fixed rate. The credit score at 95% will need to be good so make sure you are on the voters roll, are within overdrafts and have a clean credit history.
Innovative lenders have already hit the headlines with Interbay launching 85% loan to value Buy to let lending which includes multi-units on one title. We have also met with Saffron Building Society who will lend to contractors with only a 6 month history and Kensington mortgage company are also in the contractor market and will use the weekly rate when assessing affordability which can yield surprising results!
Base rate remained at 0.5% where it has been since March 2009 and LIBOR remained steady with 3 Month LIBOR holding at 0.53%.
Last week we saw some of the mainstream lenders re-price their 5 year money upwards but we can still secure 5 year money below 3%. Interestingly we recommended a 5 year fixed rate of 2.99% this week. The client’s private bank tried to match it but couldn’t do so without making a loss! This goes to show that using a broker can pay dividends in securing cheap money from lenders who have accessed cheap funds and are still able to offer it out despite funding for lending being pulled.
Are you a budding developer?
We have been arranging countless self-build mortgages, Buy to let light and heavy refurbishments and property developments. The market for the client who wishes to build their own property or develop a distressed property is very much alive. We have even secured self-build mortgages for our expat clients. The rates will reflect the size of the project and the client’s experience. This month saw a record bridging loan issued by a bridging lender for £127m to develop a prime London property, anything is possible!
Meetings with lenders are all positive with not too many concerns about MMR in April. Our network Mortgage Intelligence does a wonderful job of keeping us compliant and updated on market changes and they expect the busy start to the year to continue throughout the rest of 2014 so let’s hope they are right!
Right, back to work…
‘Commercial Finance including development finance and Bridging finance is unregulated by the FCA’