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05/09/2012

Lower rates for all



In last month’s article we mentioned the dramatic impact of The New Funding for Lending initiative launched by the government on August 1st on the pricing of longer term fixed rates for anyone who had a deposit of 40% or more. There were a number of banks offering 5 year deals at less than 3%. These remain available and are proving very popular with our clients.   

The good news for borrowers is that there is now fierce competition amongst lenders to gain your mortgage business, resulting in super low rates becoming available.  All the main high street banks have now slashed their rates, some by as much as 0.5% across all their product ranges. Many of the secondary lenders have also followed suit and this week Tesco Bank is the latest lender to announce reductions in all their products. 

Importantly, there are now lenders keen to support those clients who have smaller deposits with some very competitive fixed and tracker products. For those with a 5% deposit there are 3 year fixed rates available below 5.5% with a modest £499 arrangement fee, and for those with a 10% deposit who wish to fix their mortgage for up to 7 years, one mainstream lender is offering a rate of 4.89% and a fee of £599. 

While this is all good news for new borrowers, existing Santander (formerly Abbey National) customers whose deals have expired and have now reverted to the banks SVR will be paying 4.74% from October. The increase of 0.5% is blamed on the cost of running a bank in the UK!  We are seeing a number of disenchanted Santander customers looking to save money by remortgaging elsewhere.

For clients looking to borrow more than £1,000,000 there are some super low rates being offered by private banks particularly to clients who are willing to transfer all or part of their wealth management as part of the deal. A number of international banks have also set up London offices in the past year and are very keen to lend against London real estate. 

There are a number of retail lenders that want to compete in the £1,000,000+ loan space, however turnaround times can prove lengthy, all be it arrangement fees are often considerably cheaper than those charged by private banks. However for loans in excess of £2,000,000 we would nearly always recommend sourcing a bespoke solution for clients from a private bank as retail lenders have far less desire to lend at this level.

 Finally, we have been working closely with an international bank keen to fund and refinance residential and commercial projects around the world. Recent transactions have included a BTL portfolio in prime central London, an hotel in London, data centre in Dublin, light industrial property across northern Europe, office towers in Paris and a residential portfolio in New York. They are also keen to help any clients who may be coming under pressure from their own banks to find alternative sources of finance. Minimum loan size is £20,000,000 and maximum LTV 80%.

If you would like Charles Cameron to help you please contact:

Paul Faithfull 07710 780 102 or paul.faithfull@ccameron.co.uk    


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