Yorkshire Building Society: It is fair to say that the mortgage market in 2008 has been a challenging one, with many lenders having a tough job of achieving lending targets. However, we have recently seen a reduction in swap rates which lenders have started to pass onto borrowers and we hope to see this encouraging over the coming weeks and months. Borrowers with larger deposits are able to benefit from the lowest rates in the market so this is the best way that customers can secure the best mortgages in the current climate. Otherwise, I would recommend that borrowers look in depth at the mortgage market, which will help them to identify the best deal for them.
Newcastle Building Society: We can't say for sure when there is light at the end of the credit crunch tunnel, however some lenders, like Newcastle Building Society, are introducing features which include ‘friends and family', offset and shared ownership to help first-time buyers. The reality is that most people are still able to get a mortgage or remortgage so we have to remember it's not all doom and gloom at the moment. Our advice to customers is to keep an eye out for deals as they are released.
Halifax: Despite all the doom and gloom, the mortgage market is still a very active market. As mentioned above, the remortgage market is as strong as it has ever been and will continue to do so. We have talked about the FTB market. At the other end of the spectrum, a recent newspaper article reported on the increasing range of products available for mortgages of £500k and above. Fixed-rates are coming down, reflecting the lower cost of fixed-rate funds, with lenders, including ourselves, passing on these decreases to our customers. Although we can't predict rate trends going forward, all of these are sure signs that the market is still open and competitive. Finally, despite all the doom and gloom, we continue to lend actively to BTL landlords, providing further support to the market.
Lloyds TSB: There is no doubt the market has changed but it has not changed as much as you might think from reading the papers. Though there the number of mortgage deals available has reduced, there are still over 5000 mortgage products on the market. We would always encourage anyone thinking about taking out a mortgage to come and speak to us. People may be missing out purely because they believe they may not be eligible.
London & Country: The last 12 months has certainly been a rollercoaster for the market and with the secondary markets still effectively closed there is no reason to expect that the funding issues will ease at the moment. However, lenders have continued to lend throughout and, for most borrowers, mortgage finance has been available with the only question being the price at which it could be secured. The market appears to now be more stable and lenders are now competing on rate, albeit for those with larger stakes in their property. The messages are much more positive but when confidence will return to steady house prices is harder to call, although increased expectation of a base rate cut can do no harm.
Bradford & Bingley: The lack of liquidity in the market that culminated in the credit crunch continues today, which means lenders have to find new ways of raising funds than a year ago, which aligned to the falling house price index, means that the market remains difficult.
On a positive note we have seen some competitive rates recently with lower LTV banding and as more lenders do this it will increase competitiveness in the market. There are also still mortgages available for first time buyers and higher LTV customers. And while the range of deals to buy to let landlords has also reduced since the onset of the credit crunch, competitive deals can still be found in the market.
