Mortgage lenders try and boost markets by cutting costs
June 25, 2009
According to a recent report a number of mortgage lenders have recently been trying to boost the mortgage markets by cutting costs for those looking to purchase a property.
Over the past couple of years consumers have experienced real problems with affordability as a result of the global credit crunch, which led lenders to increase fees and charges, restrict mortgage lending, and hike up deposit levels to a level where many could not afford to consider a mortgage.
However, earlier this month one major High Street lender, Lloyds TSB, is said to have thrown down the gauntlet in terms of trying to reduce costs and get the market moving again by slashing mortgage costs for potential property purchasers.
At the start of the month the banking giant announced that it was cutting its fixed rates for those wishing to buy a property by up to 0.4 percent, which would equate to over £400 on a mortgage of £150,000.
One mortgage industry official said: ‘It is helpful if it brings more people back to the market. These rates aren’t stand-out, but they do make the prospect of buying a property a little more attractive. Any improvement is generally to be welcomed. Lloyds is one of the banks that has been consistently lending during the credit crunch and you want them to remain competitive in order to make rivals keep pace.’
Another industry professional added: ‘Stimulating the mortgage market by encouraging house purchasing is an important focus for us and, as such, we have reduced prices for house purchase by up to 0.40 pc’.
Over recent weeks a number of lenders have tried to reduce costs for buyers, and some have rediced the level of deposit that they are demanding for their best rates, increasing affordability for groups such as first time buyers.
- Interest rate cuts may not be passed on right away says Darling Many homeowners in the UK breathed a sigh of relief at the end of last year, when the base rate fell for the first time in over two years, following a series of five interest
- Responses to surprise rate cut This week saw central banks around the globe take the unprecedented step of cutting base rates in order to try and rescue the world's financial markets, breathe life into failing economies, and restore the confidence
- Interest rates left on hold The Bank of England has announced that interest rates are to remain on hold following this month's Monetary Policy Committee meeting. The bank cut interest rates in April by 0.25% taking the base rate from
- September report shows August mortgage lending figures plummeted A report that was released last month by the Council of Mortgage Lenders showed that the previous month saw mortgage lending figures plummet, reflecting the slump that the housing and mortgage markets have been experiencing.
- Response to UK interest rate cut In early October the government and the Bank of England surprised the nation by cutting the base rate by 0.5% a day ahead of the scheduled Monetary Policy Committee meeting, where interest rates are usually
Comments
Got something to say?