Recent reports have suggested that the global stock markets have plummeted following a warning from the International Monetary Fund that there may be a slowdown in Eastern Europe.
This, combined with Eurozone issues, could see mortgage rates drop even further. Banks have begun battling for customers amid news that the housing market is slowing down, allowing homebuyers to soak up a variety of competitive rates.
The developments within the market have impacted on the rates (or ‘swap’ rates) that the banks borrow at in order to issue long-term loans. As we move towards the year’s end, lenders are desperately clambering to secure a bigger market share.
Ray Boulger, who is a mortgage expert for brokers John Charcol, also said that there might be further cuts following the economic outlook and fall in bank swap rates.
The Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review carried out in April means that stricter rules and regulations have been placed on lenders. The mortgage experts who have completed CeMAP training and obtained the relevant qualifications are still keeping busy, meeting with customers, identifying their needs, and advising on the most appropriate mortgage package.
The tighter lending regulation now in place means that some lenders have not yet met their annual lending targets, so are now battling with each other for the business. Some fixed-rate mortgages are now under 3%, depending on the loan-to-value ratio, and some experts feel that the economic outlook could reduce them even further, saving home buyers hundreds of pounds a year.