According to one mortgage broker, the affordability checks made by lenders are resulting in borrowers being unable to access the cheapest mortgage deals available.
According to Enness Mortgages, a London-based broker, there are a range of deals with less than 1% interest rates available, but very few borrowers qualify for them despite being able to afford the repayments. Problems typically arise for people who are in a profession that does not have a steady stream of income, and the self-employed.
The latest lender to join the mortgage war is the Skipton Building Society, launching a two year fixed rate deal at 0.99% for a 60% loan to value, although the fee is a hefty £1,995. HSBC and Yorkshire Building Society have both recently launched products with rates of less than 1%. However, concerns have been raised as average mortgage fees are at their highest in four years, sparking fears that consumers may not be getting the best deals.
The associate director of Enness Mortgages, Steven Boyde, said that some borrowers are paying more than they should due to having complex circumstances, despite being able to afford the mortgage repayments. According to another expert in the field, only around 5% to 10% of clients qualify for the very best mortgage rates.
Mortgage advisors are professionally qualified following study on a CeMAP training course, and are able to find the cheapest deals available for a client’s particular circumstances. When cheaper deals are available, an advisor will be able to explain why a client does not fulfil the criteria for a particular product.
