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Independent mortgage advice – first time buyers have access to low fixed rate mortgages
Independent mortgage advice – first time buyers have access to low fixed rate mortgages
Mortgage rates have fallen to their lowest level in nearly 25 years, and this applies to first time buyer with just a 1-% deposit.
Maidenhead,
Berkshire,
United Kingdom
(sardnews.org)
04/05/2013
Mortgage rates have fallen to their lowest level in nearly 25 years, and this applies to first time buyer with just a 1-% deposit.
Rates have been falling gradually since the government launched the Funding for Lending scheme, which aims to encourage banks to lend more. This was launched in August 2012. However, in recent weeks there have been a range of great mortgage deals, which means that borrowers have access to the lowest two-, three- and five-year fixed rates in over fifteen years when fixed-rate home loans became available, this is according to Moneyfacts.
Richard Alton runs Alton Mortgages, a whole of market broker based in Maidenhead. Established in 2005, customer service is at the heart of what they do, and they recognise that their clients are individuals with very unique requirements. He says:
"This is fantastic news that first time buyers have assess to the lowest fixed rates ever. This is going to encourage them to buy houses and as a whole of market mortgage broker I have record numbers of first time buyers on my books. The stamp duty saving scheme was a good idea but the bottom line is if borrowers can see they are saving money over renting they are likely to buy a property.
"I believe criteria is much tougher than it used to be, which is why I recommend using a whole of market mortgage broker as they can navigate through the criteria and take the pressure off as they deal with the banks on your behalf.
"The Funding for Lending scheme started slowing with giving best rates for people with 40% deposits, this is no use to the average first time buyer who generally has a 10% deposit so it is fantastic news that the rates for 90% mortgages have dropped significantly.
"The fact that Moneyfacts have a new record of lowest rate is proof that competition is back in the market place. Please be assured that banks are still making a healthy margin on eth products and some of these products have high fees so it is vital to do a total cost comparison, again something that a whole of market mortgage broker will be able to do for you.
"This is good news for borrowers it is a joy to see, with record low rates across the board, definite competition back within the market place which means we have a fully functioning market even if it is on a temporary basis with Funding for Lending. I doubt the Government will want this to stop so sure they are working on a successor for Funding for Lending.
"What a difference a few years make - best rate in June 1989 12.83% against the rates borrowers can get now, but also don't forget there has been significant house price inflation in the meantime.
"Banks are being slow at making decisions which is frustrating customers, criteria is tough so you must know criteria inside out and back to front before submitting any applications to lenders. You need a clean credit profile, you need some existing information on your credit report to show you either have credit or can manage credit and the biggest stress at present is the self-employed who still like to show low profits and ask for big mortgages.
"It is great to see 216,000 buyers entering the property market for the first time, I expect this has been a frustrating wait for a lot of them, waiting to build up the deposit and waiting for rates to drop to an affordable level."
Notes to Editors
Alton Mortgages is an established whole of market mortgage broker based in Maidenhead, Berkshire. Established in 2005, customer service is at the heart of what we do, and we recognize that our clients are individuals with very unique requirements and do what we can to find low mortgage rates and the best residential mortgage deals. Click here to find why you should use a broker. We work with individuals and families to provide them with an exceptional residential mortgage service with low. Click here to find out more about Alton Mortgages.
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About Alton MortgagesLtd
Alton Mortgages is an established whole of market mortgage broker based in Maidenhead, Berkshire. Established in 2005, customer service is at the heart of what we do, and we recognize that our clients are individuals with very unique requirements.
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