As mortgage interest rates begin to fall, Yorkshire Building Society claims that the UK is experiencing renewed confidence in the mortgage market; which in turn is great for those looking to embark on a CeMAP training course and become a qualified mortgage advisor.
Until recently borrowers had remained on their existing mortgage deals as they couldn’t afford to change them, but as the interest rates drop below 6%, and the Yorkshire Building Society reduced its interest rates by anything up to 0.55%, the building society says that borrowers are more inclined to swap their mortgage deals. In fact, according to the Yorkshire Building Society, applications from borrowers to change their mortgage deals have doubled.
According to Tom Girling, who is a mortgage product manager for the Yorkshire Building Society:
We are pleased to have seen application levels pick up. It is clear that our recent launch of a 5.54 per cent two-year fixed rate with an £895 fee has triggered a swift uplift of applications.
Now that there is clear water between typical SVRs of more than 7 per cent and the best two-year fixes, it has focused borrowers’ attention on getting their monthly costs down.
Ray Boulger from ‘John Charcol’ however advises against borrowers opting for cheaper fixed rate mortgage deals, as he believes that mortgage interest rates will continue to fall, making trackers a better financial bet.
We would expect the Yorkshire Building Society to have an above average share of the fixed rate market, as it has some very competitive fixed rate mortgages, but their trackers are less competitively priced. They do not have any below 6 per cent.
We have been recommending trackers, as rates are likely to come down further. Over two thirds of our mortgages are trackers at the moment.
With this renewed interest in new mortgage deals it shows that the mortgage market is picking up slowly, which means the demand for mortgage advisors is equally strong. This represents good news for those looking to take their CeMAP course in the near future.
