Industry must spur borrowers to act

Much has already been reported about the Government’s Funding for Lending scheme which has magnified the focus on lending.

David Finlay

It’s fair to say this has helped to create one of the most competitive loan markets in recent history thanks to lenders actively responding to these market changes and introducing new ways of channelling the benefits of the scheme to borrowers.

Indeed, Barclays is committed to passing on the whole benefits and this is illustrated in the recent lowering of rates on fixed rate deals, NewBuy mortgages as well as our Great Escape remortgage package.

We believe these cuts will allow a variety of borrowers to take advantage of this cheaper time to borrow and make the investment decisions that they may have been putting off.

And these cuts are not just for those with lower LTV’s, those borrowers with smaller deposits can also benefit with rate reduction on fixed rates by up to 0.3 per cent.

Furthermore, the reduction on the Great Escape remortgage package will help those homeowners who have recently been hit by other mortgage providers’ increased SVRs.

Such rate reductions across the industry are a step in the right direction for higher LTV borrowers and lenders are slowly bridging this gap but it remains vital to weigh up all the associated risks and maintain responsible lending boundaries.

The Funding for Lending scheme has certainly helped with this and the initiative as a whole should be applauded.

What is evident though is that we, as an industry, have to encourage the relevant borrowers to act sooner rather than later to realise the true benefits of the current favourable market conditions.