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Attractive Mortgage Rates

A few things have happened today which are of note, not least Abbey and C&G launching some attractive looking rates.

Two year fixes are starting at 4.29% with a £995 arrangement fee although still at a low 60% LTV.

At 85% LTV the rate is 5.85% for a 3-year fixed.

The good news is that they have both released tracker products which have attractive looking headline rates starting at 3.99% with realistic fees.

It is amazing however to think that tracker rates at 1.99% above base to 2.5% above bank base are now the good rates!

It does show that there are still many issues out there in terms of lenders funding, and whilst we all want to see lower margins on trackers it is not always quite that simple.

It was good to see HSBC coming out and saying that they will guarantee that they will lend up to £15 billion in mortgage lending next year, which is double what they leant in 2007.

Although again the offers are likely to be limited to a certain sector of the market, this does serve to send out a positive message and it will be interesting to see if other lenders follow their lead.

HSBC has been great generally in the PR stakes recently and as John Foley says in The Telegraph: “HSBC’s share of the UK mortgage market is unlikely to bust into double-figures.

“But the political goodwill for publicly turning the lending taps back on is surely worth something too.

“As any school swot knows, what counts isn’t just how good you are – but whether the teacher notices that you are better than everyone else.”


FSA freezes assets of NI broker

The Financial Services Authority has frozen the assets of a broker from Noel Heaney, a broker from Northern Ireland, for serious systems and controls failures.

Lenders selfishly pick and choose what TCF means

TCF is a daily consideration for all brokers but I have an issue with how lenders seem to decide what constitutes meeting the initiative to suit their own ends, even if it disadvantages borrowers.


Out from the long grass? An IT and NI merger

Those with a long memory will recall that at the start of the last parliamentary term George Osborne announced his intention to merge income tax (IT) and national insurance (NI).  Headline grabbing as the initiative was, the reality of the complexities, challenges and costs of such a move resulted in this idea being kicked into the political long grass.


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