Lenders go head-to-head as year draws to a close

The majority of lenders have spent the summer reducing their interest rates to increase their customer base. Now that it seems more likely that any Bank of England rate increase won’t happen until later next year, they have turned up the heat as they battle with each other to entice new customers and retain existing ones.

All products are subject to affordability and a credit-scoring process, and dependent on the size of the deposit held by the borrower. Rachel Springall, of website Moneyfacts, said:

“It’s fantastic to see a high street lender offering a market low rate of 2.48 per cent, it is likely to cause a stir in the market for long-term fixed deals.”

The talk in the market now is that it is unlikely the Bank of England will increase the base rate until later in 2015, or even in the early part of 2016. It is felt that lenders are pulling out all of the stops to encourage and retain those borrowers currently sitting on a standard variable rate, who are looking to obtain a competitive fixed rate before they start to climb.

It is a busy time for professionals working within the mortgage industry. Once you have completed your CeMAP training, your expertise will be highly sought after, as people look for honest and transparent advice regarding the best mortgage package for them. With lenders striving to deliver their lending targets, there is a chance that the trend of lower rates will continue.



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