This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-20640302
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Brokers see mortgage choice rise | Brokers see mortgage choice rise |
| (about 17 hours later) | |
| By Philip Hampsheir Business Reporter, BBC News | By Philip Hampsheir Business Reporter, BBC News |
| At her dining room table in her home near Sunningdale in Berkshire, Margaret McNaughton is looking over sheets of figures with her mortgage adviser Jane King. | At her dining room table in her home near Sunningdale in Berkshire, Margaret McNaughton is looking over sheets of figures with her mortgage adviser Jane King. |
| Her three-year mortgage deal has come to an end and she is looking for the best new rates available. | Her three-year mortgage deal has come to an end and she is looking for the best new rates available. |
| Fortunately for her, the Bank of England's Funding for Lending scheme, which is designed to get banks loaning money to households and small businesses, seems to be helping her. | Fortunately for her, the Bank of England's Funding for Lending scheme, which is designed to get banks loaning money to households and small businesses, seems to be helping her. |
| Over the past few weeks, cheaper mortgage deals have become available and experts suggest more are on their way. | Over the past few weeks, cheaper mortgage deals have become available and experts suggest more are on their way. |
| "We are very fortunate that we have a large amount of equity in our house," Mrs McNaughton says. "It means when we talk to the mortgage company we don't have to borrow a vast amount of money." | "We are very fortunate that we have a large amount of equity in our house," Mrs McNaughton says. "It means when we talk to the mortgage company we don't have to borrow a vast amount of money." |
| 'Money to spend' | 'Money to spend' |
| Many of the new, lower interest rate mortgages on the market are for people with high amounts of equity in their homes, or for first-time buyers who can offer a large deposit. | Many of the new, lower interest rate mortgages on the market are for people with high amounts of equity in their homes, or for first-time buyers who can offer a large deposit. |
| At the end of November, HSBC released its lowest ever fixed-rate mortgage at 1.99%. It does have some strings attached, though, such as an upfront fee of nearly £2,000 unless applicants have an HSBC account. | At the end of November, HSBC released its lowest ever fixed-rate mortgage at 1.99%. It does have some strings attached, though, such as an upfront fee of nearly £2,000 unless applicants have an HSBC account. |
| It follows similar offers made to the market by Tesco and Santander. | It follows similar offers made to the market by Tesco and Santander. |
| "A lot of the banks have now shored up their balance sheets," says Jane King, of Ash-Ridge Private Finance. | "A lot of the banks have now shored up their balance sheets," says Jane King, of Ash-Ridge Private Finance. |
| "They've got money to spend on lending to borrowers who want to buy property." | "They've got money to spend on lending to borrowers who want to buy property." |
| 'Real change' | 'Real change' |
| Cheap rate deals are not only available for those who have built up a large amount of equity. Mortgage brokers suggest that the Funding for Lending scheme seems to be prompting more competition among the banks. | Cheap rate deals are not only available for those who have built up a large amount of equity. Mortgage brokers suggest that the Funding for Lending scheme seems to be prompting more competition among the banks. |
| "There are deals out there for people with small deposits," Ms King says. "We have had rates come out this week for a 10% deposit for first-time buyers and the rates are less than 5% with free valuation and no product fees." | "There are deals out there for people with small deposits," Ms King says. "We have had rates come out this week for a 10% deposit for first-time buyers and the rates are less than 5% with free valuation and no product fees." |
| She says there is also assistance from government schemes such as FirstBuy - a shared equity plan for those trying to get on the property ladder for the first time. | She says there is also assistance from government schemes such as FirstBuy - a shared equity plan for those trying to get on the property ladder for the first time. |
| Other mortgage brokers say they have seen some movement too. | Other mortgage brokers say they have seen some movement too. |
| "There's been real change," says David Hollingworth, of London and Country. "It is a complete turnaround from earlier in the year where competition had really died off. | "There's been real change," says David Hollingworth, of London and Country. "It is a complete turnaround from earlier in the year where competition had really died off. |
| "We are seeing a real return for the remortgage market. That's largely because lenders are looking for new business and are pricing to attract that new business and so rates have really fallen." | "We are seeing a real return for the remortgage market. That's largely because lenders are looking for new business and are pricing to attract that new business and so rates have really fallen." |
| Yet, there is no suggestion that the mortgage market is going to return to the pre-financial crisis boom, and experts suggest people should plan carefully and seek advice as much as possible. | Yet, there is no suggestion that the mortgage market is going to return to the pre-financial crisis boom, and experts suggest people should plan carefully and seek advice as much as possible. |