Mortgage lenders switch focus to support existing borrowers

 

Over a third of tracker mortgages were withdrawn from the market following the Bank of England’s base rate cut on 19 March, according to Mortgage Solutions.

Lenders are switching their focus from new borrowers to supporting existing customers during the coronavirus pandemic.

This includes withdrawing products for new borrowers, to ensure they can offer help to customers in need of mortgage payment holidays for the immediate future.

HSBC has temporarily removed access to all two-year tracker rate products. Meanwhile, Barclays has withdrawn a selection of mortgages across their residential and buy to let range. Together Financial Services also halted all new borrowing as it takes ‘prudent steps’ to implement government advice and manage existing customer needs.

Smaller lenders are likely to become more risk-averse in the coming weeks. The current economic crisis means that many borrowers may no longer be financially secure. Several have started to withdraw high loan-to-value (LTV) products. According to moneyfacts.co.uk, Kensington, Progressive Building Society and Foundation Home Loan have pulled their entire mortgage ranges on an 80% LTV of above.

Eleanor Williams, financial expert at Moneyfacts.co.uk, said: “The recent withdrawal of some higher LTV mortgage products is hopefully just a temporary measure, while mortgage providers take some time to reassess risk in this area of the market and react.”

Nationwide reintroduces tracker mortgages

However, having considered the impact of the two interest rate cuts across their product range, some lenders may change tack.

Nationwide brought back tracker mortgages just days after it withdrew the product from its range. First-time buyers and borrowers borrowing for a house move can access the tracker from 1.39%. Those seeking to remortgage can get rates from 1.19%.

Henry Jordan, director of mortgages at Nationwide, said: “We are re-introducing two-year trackers to our mortgage range to enable us to offer products with flexibility and no early repayment charges.”

The lender has also confirmed that it will be passing on a further 0.15% rate reduction to existing variable-rate borrowers. This is in addition to the initial 0.50% reduction due to be passed onto borrowers on 1 April. Existing tracker rate mortgage borrowers will also benefit from the 0.15% reduction.

Nationwide’s new rates will come into effect on 15 April. The base mortgage rate (BMR) and standard mortgage rate (SMR) will reduce by 0.15% to 2.10% and 3.59% respectively.

BuyAssociation has a range of property investment opportunities available. We also have a number of mortgage partners we can put you in touch with. Call us on +44 (0) 333 123 0320 (UK) or +852 2554 5509 (HK) for more information. You can also sign up for free for access to our products and services.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

Mortgage rates HMO

Mortgage lenders switch focus to support existing borrowers

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.