Four years have passed since the credit crunch began and, since then, the mortgage market has changed markedly. All borrower types, whether you are a first-time buyer, remortgage customer or landlord, have been affected. For example, we have seen low deposit mortgages become rare, record low interest rates and lenders’ credit criteria tightened.
The mortgage market is also smaller now than four years ago, but the fall in lending has stabilised over the past year.
Many homeowners and consumers understand how slow economic growth and flat house prices have affected them. But although it may not be immediately obvious, there are some real positives for borrowers looking for new deals. There are good options all round; at one end, those looking for longer-term fixes can now find several five-year fixed rates well below 4%. On the other, there are a number of tracker deals priced below some lenders’ Standard Variable Rates (SVRs).
Competitive deals are helping borrowers who want to remortgage or switch deals, though some borrowers will of course be happy to stay on their existing revert rates, depending on their individual circumstances.
Making an informed decision of what to do next to your mortgage (if anything) is hard, as no one knows when the Bank of England rate will increase. Concerned borrowers should therefore consider speaking to their lender or broker, who will be able to provide information and advice to help them make a decision.
So while I’m not saying that the mortgage market has fully recovered to the pre-2007 levels, I am however saying that lenders such as Nationwide are fighting for borrowers’ business and there are many good deals out there.
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