From Chris PooleI agree with Sue Read’s comment (Mortgage Strategy September 26) regarding lenders trying to retain existing customers, but would like to point out that the number of lenders offering more attractive rates to existing customers is minimal. The ‘can I borrow your pencil’ syndrome is still the norm. The reason it is becoming less economic to remortgage clients to a more attractive rate is that lenders have increased their final repayment and deed release fees out of all proportion. Abbey has increased its fee from 95 to 225, Nationwide from nothing to 95 and The Woolwich from 95 to 195, to name but a few. Couple this with the trend among lenders charging towards higher and higher arrangement fees and the viability of remortgaging clients, particularly for smaller borrowings, cannot be justified. This, of course, is no coincidence and is an underhand way of retaining customers without having to offer the competitive rates needed to attract new business. Read is correct when she says brokers still have to put in work to ascertain whether or not it is right to remortgage a client, but there could be light at the end of the tunnel. The Woolwich recently introduced a retention service which, although does not offer customers a choice of its better rates, does pay brokers a fee if we recommend the client stays with it. With luck, other lenders may follow suit.
Platform, the intermediary lender of Britannia, today announces the launch of a range of fixed rates across its self-cert, buy-to-let and sub-prime products. The range also sees the launch of a two-year fixed rate self-cert special available to 85% LTV at the exceptional rate of 4.95% with no early repayment charge overhang.These fixed rates have […]
The Bank of England left base rate unchanged last week at 4.5%. The previous change in base rate was a reduction of 0.25 percentage points to 4.5% on August 4. Michael Coogan, director-general of the Council of Mortgage Lenders, says: “The Bank’s decision to leave the rate at 4.5% was no surprise. Housing transactions, mortgage […]
They said it would never happen but Rightmove is poised to introduce an automated valuation system that could herald instant mortgage offers next year, says Frank Eve
It was a pretty quiet week for rate changes but we did see the best rates of the year being launched. One-year money is down 0.02% at 4.54% Two-year money is down 0.03% at 4.49% Three-year money is down 0.01% at 4.52% Five-year money is up 0.02% at 4.56% While I was impressed to receive […]
Well, it’s been lovely to see a little bit of sunshine, even if it was only a brief appearance. I live in Scotland so, believe me, it was very brief. Of course, with even the tiniest hint of spring, thoughts turn to the inevitable clearout that must take place. And that got me to thinking […]
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