Over the past couple of weeks many lenders have launched new lower fixed rate products, starting as low as 2.99%, hoping to tempt people off their low variable rates. This should be seen as a positive approach as many clients are now looking to control their spending and want the certainty of fixed rates. Not only can you budget effectively over the coming years but also benefit from the peace of mind that these low rates deliver. On the negative side, the deposits required are on the high side as lenders seem to be targeting those with higher equity levels. Why? More favoured, less risky. This is doing nothing to help first time buyers as the 90% rates are still on the high side with criteria as tight as ever.
It is yet to be seen whether the new funding for lending will ease the pain for the first time buyer market, however, getting things right at the bottom of the ladder has an important knock on effect throughout the chain.
Lloyds Banking Group have shown an interest in the affordable housing and new build markets, via Halifax, and innovative products such as Lloyds TSB’s Lend a Hand, but at present there is little evidence of any new assistance. Lloyds recently announced plans to assist the FTBs by increasing lending to first time buyers by 5bn by the end of 2012.
Watch this space…..please contact Alison Mitchell for your free mortgage review.
