28.08.08 by Andrew Montlake

Mortgage Porn

Our dear Knightsbridge Sales Manager Roy Hardy sent me a copy of an email yesterday to a client which shows the vast change in mortgage rates from even a month ago. To brokers this is the equivalent of Mortgage Porn, you just gotta love it !

On 16th July the best option for the client was a 2 year fixed at 6.99% with a 0.5% Arrangement fee or a tracker rate at Bank Base + 1.29% with a 0.5% fee.

On 27th August the best options were a 2 year fixed at 5.70% with a £999 fee or a tracker at Bank Base + 0.70% with a £999 fee AND free legals and a free valuation.

This is a massive fall of 1.29% on the fixed rate, 0.59% on the tracker and a huge fee reduction.

What is more these are available through brokers and it is nice to be in a position to really add value to in terms of pricing to clients again.

It really does show a change in the psyche of the mainstream mortgage lenders and is great news for brokers and consumers alike.

In terms of house prices we have just seen the latest report from Nationwide which suggests that prices in the UK have fallen by 10.5% in the past year, which is the first double digit fall since 1990. It is interesting to note though that average prices are still higher than 5 years ago.

According to Nationwide's chief economist Fionnuala Earley data from estate agents suggested "there may be some glimmers of interest returning to the market" as some buyers were taking the opportunity to secure large discounts.

The full story on the BBC is here.

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