A price war in the equity release market could be on the cards as Bristol & West reprices its lifetime mortgage product at 5.95% today.B&W entered the equity release market three months ago, but has waited until now to take control of this rapidly expanding market. Research from B&W shows the top end of the market experienced a dramatic reshuffle when Just Retirement launched its 5.99% rate on October 4, and the lender predicts things will heat up further with its own product relaunch. Prior to the launch of the Just Retirement product, Northern Rock dominated the market with the most competitive rate at 6.15%. But its share of the market drastically reduced after just one week of Just’s entry into the market. Now both Northern Rock and Just Retirement look set to be beaten to the top spot as B&W’s 5.95% rate seizes control of the market, suggesting a price war could be imminent. Roland McCormack, managing director of mortgages at B&W, says that by the very nature of a competitive market, other lenders could react to the repricing, though who and when remains to be seen. He says: “Those that want market share will have to compete. We are in a price war which will benefit both customers and brokers.” Ray Boulger, senior technical manager at John Charcol, says the entry of several lenders into the market over the past six months has not only stimulated a rate battle but also brought new features to the market. He adds: “It’ll be interesting to see how lenders like Northern Rock react to B&W’s repricing because they can’t afford to ignore it.”
- Top trends
Mortgage Business Expo has teamed up with image consultants Dress2kill for the London Expo on November 16 and 17 2005. Visitors to the Expo at Earls Court 2 will for the first time be able to pay the image doctors a visit and get the prognosis on their fashion health. If your suits are flatlining […]
Freedom Lending has launched a number of enhancements to its product range, including a three-year stepped discount with rates starting from 4.58% and no overhanging early repayment charges, which is available on its standard adverse range of mortgages. Other enhancements include the availability of free legals on all remortgages in England and Wales and an […]
The Royal Institution of Chartered Surveyors is advising people to prepare their homes for winter and stop the predicted harsh weather from taking its toll on their property, heating and maintenance bills. RICS say that properties are vulnerable to attack both from the outside elements and the moist, warm conditions that build-up inside during the […]
Mortgage 2000 has launched an exclusive product from Leeds. The product is a 100% mortgage at 5.72% fixed for five years with no upfront fees. The product will be available via a number of the Mortgage 2000 distribution channels including m2-mortgage club (direct to lender), m2-d&p (packaging) and Casemaster (online processing system). The product has […]
Edenred has partnered with Johnson Fleming to launch an auto-enrolment solution for small to medium-sized enterprises (SME) that will help employers fulfil their pensions obligations.
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