Most of us would assume that when the Bank of England (BoE) cuts its rate of lending, then interest rates for the public will also fall. Yet this has not been the case since Mr. Carney decided to cut the BoE rate following the Brexit vote. Banks fund their lending from a mix of sources; Savers’ deposits being one, but the money markets form a significant portion of their supply of cash. Since August the fixed rates UK banks are paying to borrow money for two, three and five years has on average more than doubled – and this is starting to feed into the pricing of the mortgage products.. read more →

25 Aug 2016
August 25, 2016

Record Low Mortgage Rates

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Interest Rate Cut The Bank of England recently cut its base rate to 0.25% from 0.5%. The effect of this varies by the type of mortgage you have. A tracker rate will track the Bank of England base rate, typically above a given percentage, thus a change in the Bank of England base rate downwards will see mortgage payments reducing. What will this mean for me? If you are on a tracker mortgage, the savings are approximately £11.43 per £100,000 borrowed on an average 25-year repayment mortgage or £20.84 if interest only per month. Fixed rate mortgages are unaffected I’m On A Fixed Rate, Can I Get My Mortgage Payments.. read more →

Brexit “will force rates up to 3.5pc within 18 months” warns the Bank of England’s (BoE) latest recruit to the Monetary Policy Committee. Michael Saunders. The ex-Citibank economist, who is set to join the rate setting organisation this coming August, believes Brexit will see a collapse in the pound which will lead to a swift hike in inflation. With the pound devalued, imports will become more expensive, causing inflation to rise. When inflation rises above 2.5%, the BoE will begin to raise interest rates from the historic low of 0.5% and while this will be of joy to savers, mortgage holders will suffer the consequences. A BoE basic rate of 3.5%, some SEVEN times higher.. read more →

After much encouragement from the major lenders we have put forward two of our hard working staff for awards at the BMA 2016. Stephen Darbyshire (our Director of Specialist Lending) has been nominated for Best Broker: Buy To Let and Ruth Huntley Jacobs (our Director of Operations) has been nominated for Technology Advocate If you agree with the nominations (and you have a spare two minutes) we would really appreciate it if you would nominate Stephen and Ruth for their respective awards. We are extremely grateful in advance for those clients who choose to help us. By selecting the different categories you’ll be able to submit as many nominations as you decide. Voting closes on.. read more →

A recent industry wide survey by the Intermediary Mortgage Lenders Association (IMLA) demonstrates that Express Mortgages is one of the top performing brokers within the UK. On average, a Mortgage Broker will complete 69% of all applications they submit on behalf of their clients. Of course many brokers complete an even lower percentage of applications, Express Mortgages however had a completion rate of 83% in quarter 4 of 2015. IMLA concludes that the best brokers are, “evidently highly effective at matching borrowers with the product best suited to their needs, and we expect them to build upon this success as they continue to get to grips with adjustments to the.. read more →

03 Dec 2015
December 3, 2015

Is Buy to Let still a good investment?

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An editorial from one of the Directors at Express Mortgages on recent Government announcements affecting Buy to Let Landlords: As well as owning a share of Express Mortgages I also own a number of Buy to Let properties with my wife. Naturally you would assume my position would be to play down the impact of Mr Osborne’s “tax attack” on Buy to Let, but unlike many of my industry colleagues I’m not going to do that. We can’t simply ignore the changes but neither should we push the panic button like many media commentators have done. One important point to make is that some properties were a bad investment in.. read more →

Figures released this month show that house prices jumped by another £18,771 on average in just one year to October, now hitting a record high of £205,240. Year-on-year growth stands at 9.7 per cent in October, an increase from 8.6 per cent the month before, according to the latest Halifax house prices index. This is the largest annual increase in UK property prices since August last year. These price increases are being fuelled by the low housing stock and the lack of new sale instructions coming to the market. When you add to this decreasing unemployment, an improving economy, low mortgage interest rates and an increasing supply of low deposit.. read more →

Once upon a time, an investor could place a deposit with the house builder on a property before a brick had been laid at a new development, and before even the first properties were completed, bingo – sell the property on to another investor and make a nice return. Clearly the sustainability of 20 – 25% annual house price increases was never going to continue and the inevitable happened. Yet the expected crash in house prices was a lot softer in most of the UK than in other Western economies. Further, the number of repossessions were smaller than some predicted. However, funding from the banks for buy-to-let properties had all.. read more →

Landlords are increasingly confident about the availability of buy-to-let finance. This is according to new research from Paragon Mortgages, which shows rental property owners are now more optimistic than they have ever been since the financial crisis struck. Some 44% of landlords told the organisation they thought buy-to-let finance was readily available in the first quarter of 2014. This represents a 2% increase on the year before and is the highest figure recorded since Paragon started the survey in 2010. John Heron, the company’s Managing Director, stated: “The availability of buy to let finance is vital to a healthy and competitive private rented sector.” “As the market has recovered we.. read more →

09 May 2014
May 9, 2014

Mortgage rates rising quickly

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In our first mailshot of 2014, Express Mortgages predicted 2014 would be the year when UK mortgage rates finally begin to rise – and would do so consistently. Moneyfacts reports that last month we saw fixed rates rise on average just under 0.1% and whilst this appears a relatively small amount, it is the fastest month to month change since 2012. The day was always coming when UK home owners would realise that the best rates for borrowers ever seen for an extended time span would be over. This is increasingly likely to be the case as lenders continue to raise the rates on new home loans. Sylvia Waycot of.. read more →