Halifax to increase Standard Variable Rate

Don't panic, only for "new customers". At least that's what they say now!

Details as follows:

"We're introducing a new Halifax Homeowner Variable Rate (HHVR) for all new Halifax mortgages taken on or after 4th January 2011. This new rate will be the rate customers will revert to when their initial mortgage deal comes to an end. Set at 3.99%, the rate is competitively priced.

No existing mortgages are affected by the introduction of this rate. At the end of their current deal, all existing customers will continue to revert to the existing Standard Variable Rate, currently set at 3.50%, or any other relevant reversionary rate as set out in their mortgage documents".

However, if you are an existing customer and you sign up after 4th January to a new deal with Halifax, then you will have committed yourself to an increased follow on rate up 0.49%. 

Even better re-mortgage deals (no Fees) and now fixed rates

New today from a leading lender: "In addition to our best selling 2.18% Great Escape Tracker (pay rate now 2.68%) we are widening The Great Escape to include a 75% LTV Tracker, and for those clients who would like to escape from their existing lender but fix their rate straight away, we are launching 2 Year Fixed Rate Great Escape products at 70% and 75% LTV. All The Great Escape products have the following benefits: • Free legal work, free valuation and £300 cashback to cover existing lender's exit fee • No application fee. The key changes are: • New The Great Escape Products. 2 Year Fixed Rate, 3.28%, £0 fee, 70% LTV, min loan £50k. 2 Year Fixed Rate, 3.48%, £0 fee, 75% LTV, min loan £50k. Lifetime Tracker, BBBR+2.48% (pay rate now 2.98%), 75% LTV, £0 fee, min loan £50k." So if you are paying 4.24% to Abbey, 5.99% to Accord, 4.99% to Alliance & Leicester, 4.24% to Britannia, 3.5% to Halifax, 3.94% to HSBC, 4% to Nat West, 4.79% to Northern Rock, 4.99% to Woolwich......................... NOW IS THE TIME TO DO SOMETHING!! Also worth knowing that the last one of these I did for a client took 11 working days from application until completion!

Best deals are with higher equity, so act now before house price falls may reduce that equity.

Is this a sign on things to come?

RBS / Nat West have just announced withdrawal of 2.75% (remortgage) fixed product: the current 50% LTV 2 year fixed at 2.75% (£0 arrangement fee and £250 cashback) with effect from midnight on Thursday 18^th November.

Why use a mortgage broker?

Found myself writing the following today to someone who is a first time buyer, is shopping around and wants a Decision in Principle without meeting:

A "decision in principle" (DIP) is only as good as the facts behind it. If details asked for (and also not asked for!), do not fit with a lender's underwriting requirements when a full application is made; then notwithstanding what a DIP says .....it is worthless and won't be honoured!

There is also no such thing as a numerical "credit score". The number that Experian and the likes put out, is how their computer works things out. This may have no relation to the priorities / assessments that a lender may program into their computer when it makes a lending assessment. Additionally, a lot of lenders assess your credit score as "high", "medium" or "low" and the maximum they could lend; depends on the outcome. This is why it is better to get an DIP. The facts behind any DIP need to be quantifiable (backed up by the right paperwork in the right way), as otherwise the decision is invalid.

Furthermore, if facts and figures are changed in any later DIP or application, the banks' fraud prevention systems will identify such discrepancies and usually lead to an automatic decline! These days, there is no such thing as an appeal against "computer says no"!

So, in my long winded way, what I'm saying is the only sure thing is to do the hard work up front; hence why I'm not able to make any kind of recommendation without a proper discussion. Frankly, it's a little bit like asking an internet "doctor" what is wrong with you, rather than having a proper examinination!

Buying a house with a mortgage is the biggest purchase most people make in their lives and I would suggest, it is worth a couple of hours face to face to get it right?

Santander tighten up lending into retirement

Santander (Abbey and Alliance & Leicester to you and me!) have announced today that "evidence is now required for both current and retirement income on all applications where a mortgage term goes beyond the applicant’s stated retirement age". So in other words if you want to borrow beyond the age you state that you plan to retire, they will want proof of your retirement income............ no matter if it is in 35 years time!

Falling Re-mortgage rates

Mortgage rates continued to fall during October as lenders tried to tempt homeowners to remortgage. The average cost of a tracker loan hit a new record low of 3.5%. Two-year fixed rate mortgages for people with a 25% deposit dropped to 3.72%, cost of a five-year fixed rate mortgage fell to... 4.85%.

In fact rates out there are better than most lenders SVRs and without fees!

So if you are paying 4.24% to Abbey, 5.99% to Accord, 4.99% to Alliance & Leicester, 4.24% to Britannia, 3.5% to Halifax, 3.94% to HSBC, 4% to Nat West, 4.79% to Northern Rock, 4.99% to Woolwich......................... NOW IS THE TIME TO DO SOMETHING!!

Best deals with higher equity, so act now before house price falls may reduce that equity.