Financial information service MoneyFacts revealed that, in November 2008, there were only 66, 90% mortgage deals left on the market compared to almost 1,200 in February ’08. A vivid illustration of just how much the mortgage market has changed. According to the BBC news website, some mortgage brokers are worried that we’ve seen the last of mortgage deals of less than 75% value, at least until property prices stabilise. Rather than talking about the best mortgage deals, most people are simply concentrating on finding out what’s available in a rapidly shrinking market.
The UK housing market will probably have contracted by an overall 15 – 20% over 2008. So, for first time buyers in particular, we’re in a buyer’s market. But even if you are in the market to buy a property, are there any decent mortgage deals to be had?
Best Mortgage and Remortgage Deals
Things aren’t looking good as far as mortgage variety is concerned. Low deposit mortgages have all but disappeared. Recent figures (Nov ’08) show that there are only around 35 5% deposit mortgage deals available, down from 1,126. There are only 66 10% deposits to choose from, down from 1,152. Nine months ago consumers could choose from 228 15% mortgage deals, now there are only 198 on the market. And so on.
An hour spent on Google delivers much the same story. A search of UK best mortgage deals comparison site mortgagesorter.co.uk returns no 100% mortgages – not one.
Interestingly, many of the best mortgage deals come from UK Building Societies and Mutuals. Despite the constant doom and gloom portrayed by the media, there are decent deals to be found. You just have to work harder to find them. Good discounted variable rate mortgage deals include one from the Principality Building Society, 75% of value, no fee and an interest rate of 4.99% until the end of 2010. And Leeds building society is offering 80% of value at 6.09% for two years, with a fee of £999 on completion.
First time buyers can get a good mortgage deal at Barnsley Building Society, which is offering 85% value mortgages at 5.69% for 2 years, with an arrangement fee of £750. Leeds Building Society has a good mortgage deal on its books; 90% of value at 6.69% for two years with a fee of £999 on completion. And the Co-operative Bank have an 85% deal at 5.04% until 2012, arranged for £995.
Good fixed rate mortgage deals with no tie-in include Abbey’s 75% value mortgage with an interest rate of 4.79% until November 2011, with an arrangement fee of £495. Principality’s 75% of value mortgage comes in at 4.99% until 2010. And Mansfield Building Society has a 75% deal at 4.69% for 2 years, with a £999 arrangement fee.
The best mortgage deals covering interest only include Abbey’s 4.79% 75% of value package with a £995 arrangement fee, Principality’s 75% deal at 4.99% with no fee, and Halifax’s 75% of value at 5.19% with an arrangement fee of £495. There are a few self-verifying mortgages around but they’ll sting you with interest rates between 6.40% with Coventry Building Society and 6.5% with Standard Life bank.
Whatever your mortgage needs the best mortgage deals are out there. It just takes a lot more time and effort than it did a year ago!
What are the best mortgage deals you have found?