Mortgage Wars ‘Bringing Down Costs of Borrowing’
April 22, 2015
Competition for mortgage customers among banks and other mainstream money lenders is leading to a gradual reduction in the cost of borrowing in the UK, relevant brokers have said.
Banks and other mortgage providers are also becoming increasingly willing to offer deals on home loans to borrowers who don’t necessarily have huge deposits to put down as they look to buy a particular property.
Competitive pressures are apparently increasing on mortgage lenders throughout the country, with demand for mortgages having fallen in the UK for three successive quarters, according to the Bank of England’s official data.
The results of which could be good news for consumers and mortgage holders as lenders look to attract new customers in different areas of the country and different elements of the mortgage market spectrum.
With inflation having come down in recent months and the Bank of England’s base rate of interest staying put at 0.5 per cent, most analysts and experts are convinced that the cost of borrowing will remain low for homeowners for some time to come.
Indeed, market watchers have already spotted a rise in relatively low interest mortgage deals being made available to borrowers in Scotland and the rest of the UK.
“The competition to be the lowest in the mortgage market shows no signs of stopping and is great news for borrowers,” said Charlotte Nelson from the financial information website MoneyFacts recently.
“Moneyfacts.co.uk has seen 15 providers cut rates across their ranges in the past seven days alone. Lenders want to appear in the ‘best buys’ so they are constantly reducing rates to remain competitive,” she said.
Downward pressures on mortgage costs should provide some welcome relief for hard-pressed households for whom making mortgage payments can represent a real financial challenge on a monthly basis.
Figures suggest that UK consumers and homeowners are in need of significant relief when it comes to their mortgages, with recent Halifax research pointing to an average £613 increase in mortgage repayments over the past 12 months. Typical net annual incomes among those same households only increased by £15 during that same period.
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