Variable Rate Mortgages On The Increase
September 20, 2008
In the last three months, the number of mortgages being borrowed on a variable rate basis has increased from 24 per cent to 35 per cent according to Legal & General’s Mortgage Purchase Index series.
Over a third of residential mortgages were variable rate in comparison with under a quarter in the period from April to June this year.
Stephen Smith, Director of Housing at Legal & General, said:
“Trackers will have attracted greater attention as forecasts of base rate cuts become more prominent. The popularity of variable rates has also perhaps been boosted by the number of borrowers sticking with their lender’s standard variable rate when they came to the end of a deal rather than remortgaging straight away.”
Also, tracker rate and variable rate mortgages look to have become increasingly popular with buy-to-let borrowers in the last quarter. In the period from April to June this year, 58 per cent of buy-to-let mortgages were fixed rate and just 41 per cent of mortgages were variable rate. In this last quarter the share had turned around as variable rates became the most popular buy-to-let mortgage type with 55 per cent and fixed rate mortgages represented only 43 per cent. This could be due to the recent interest rate cuts by mortgage lenders combined with a more optimistic outlook from buy-to-let borrowers.
Fixed Rate Mortgages Top Choice For Borrowers
September 19, 2008
In the last quarter, the number of fixed rate mortgages dropped from 75 per cent of all home mortgages to just 63 per cent.
According to Legal & General’s Mortgage Purchase Index, the fixed rate mortgage is still the most popular mortgage type and the clear runner in the index.
“As suspected, the popularity of fixed rate mortgages peaked last quarter when we found that three-quarters of borrowers were taking this type of mortgage, compared to 63 per cent in Q3,” stated Stephen Smith, Director of Housing at Legal & General.
The Legal & General report stated:
“Fixed rates are nowhere near as popular for buy-to-let mortgages as they are for residential mortgages. Many of the more recent exclusive mortgages agreed with lenders through the Legal & General Mortgage Club have been trackers rather than fixed rates.”
Fixed rate mortgages do have the advantage for the borrower that they can be certain of what their mortgage interest rate and payment will be for the length of the arranged deal, however, it also means that borrowers would not benefit from interest rate cuts, such as those seen in the last couple of months.
Questions To Ask Yourself Before Any CeMAP Training Course
September 18, 2008
We have discussed before the various benefits of taking a professional CeMAP training course, however, there are a few questions that you should ask yourself before you commit to any CeMAP training courses with any training provider.
- Do I need a five-day training course or would I prefer to do a
CeMAP Home Study course?
- Am I able to self-study
- Have I had any prior experience of the mortgage industry?
- Am I able to focus on a home study course?
- How long would a home study CeMAP course take me and would I dedicate the time to it?
- Is the course I’m looking at a revision course or a full training course?
- Will this course provide me with mock exam revision questions?
- Is this course divided into bite-sized, easy to learn sections?
- Will this course teach me the material in a way I can absorb and learn rather than just getting me through the exam?
The most successful way to pass the CeMAP 1, 2 and 3 exams is Read more
What Happens After CeMAP Training?
September 17, 2008
There is plenty of information out there on various CeMAP training courses and training providers encouraging delegates to book on their CeMAP course, however, there is not as much information available on exactly what happens or what your choices are after passing your
CeMAP exam and how to go about becoming a mortgage advisor.
This is partly because Read more
Benefits of Professional CeMAP Training
September 16, 2008
For those considering training to start a successful career as a mortgage advisor, their training begins with passing the CeMAP qualification (Certificate in Mortgage Advice and Practice), which consists of CeMAP 1, 2 and 3.
A professional CeMAP training course should be based on a small group of up to 10 – 12 people to one tutor experienced in the Financial Services Sector and the CeMAP exam. A five day
CeMAP training course is intensive, focused and prepare the delegates for the CeMAP 1, 2 and 3 exams.
There are many benefits to studying and undertaking a professional CeMAP training course:
- The entire CeMAP training industry is based upon Read more
Could Mortgage Advisors In Birmingham Have More Business?
September 15, 2008
Those seeking mortgages in the Birmingham area have more choice in mortgages.
According to a financial analyst at Moneyfacts, Michelle Slade:
“Borrowers in the Midlands have wider access to a higher number of mortgage products than anyone else in the UK, with those living in the Leicestershire having the widest choice.”
This statement was made primarily because the Birmingham and Midlands area has a higher number and concentration of the smaller building societies, which have in the last few decades been swallowed up by larger banks and mortgage lenders. As a result, this was a question posed by a delegate on a CeMAP training course in the Birmingham and Midlands area.
These building societies, such as the Birmingham Midshires Building Society or West Bromwich Building Society, offer selected products purely for Read more
The Mortgage Price War Is On!
September 14, 2008
Great news for mortgage advisors and homeowners, as it seems the mortgage price war is finally back on. Those borrowers with smaller deposits are at last going to benefit from cheaper mortgage as the competition on interest rates and mortgage deals between the lenders is beginning to heat up.
These last few months have been a bit of a Catch-22 situation for many, particularly for first time buyers, as they have watched property prices creeping down and yet the price of mortgages has not only remained high but mortgage lenders have been requesting around a 25 per cent deposit or even more as well as the ability to meet strict lending criteria for approval.
Since July, this trend has started to turn around as mortgage lenders have been reducing their cost of borrowing but the interest rate decreases has still only benefited those with the larger deposits. However, now at last the cost of mortgages for those with a10 to 25 per cent deposit is finally beginning to come down as mortgage lenders start to introduce some more competitive deals as their confidence returns and the cost of wholesale borrowing is Read more
More Mortgage Interest Rate Cuts
September 13, 2008
Yesterday, there was some rare good news, both for those looking to buy their first property and for those homeowners who may perhaps be searching for a new mortgage deal for a remortgage, as another three mortgage lenders announced that they are cutting their mortgage interest rates again.
This last week or two has shown the beginning of a new trend amongst mortgage lenders as they reduce the cost of borrowing and this move is helping to push mortgage interest rates, particularly on fixed rate deals back to the level they were prior to the credit crunch.
This move does not indicate, nor should it be confused with, a return to increasing property prices, however, it is the cost of borrowing that everybody needs to return to its previous levels.
The Abbey has announced its plans to Read more
HSBC Drops Mortgage Interest Rates
September 12, 2008
HSBC has announced an interest rate cut on its fixed rate mortgages. All their fixed rate, two, three and five year mortgage deals that are fee-free are having their interest rates reduced by 0.56 per cent. If customers are willing to pay a £799 fee on their similar mortgage deals, then they interest rate will be cut by 0.46 per cent more.
The mortgage lender says that these discounts are their way Read more
Mortgage Lending Consistent for July
September 11, 2008
Yesterday’s article discussed how experts believe the news from the US about the two main mortgage lenders will start a slow end to the credit crunch.
Figures have now been released showing the number of mortgages approved for July and they have steadied from June, although naturally are still much lower than this time last year. This will spell good news for Read more
