News - Industry
Mortgage Solutions | 16 Feb 2012 | 10:59
Accord, the intermediary arm of Yorkshire Building Society has had to delay the launch of its 75% and 85% LTV range until next Monday following an uplift in applications.
The lender was set to launch its new range today but a spokesman for the lender said that Accord became more competitive after several lenders re-priced upwards and Lloyds and Santander both changed their interest-only policies in the last week.
She said: “What kicked it all off was re-pricing because the big lenders all seemed to re-price upwards at around the same time and we did the same two weeks ago which bought us back in line.
“We had everything ready at launch and then exactly the same thing happened again and of course the interest-only announcements followed it. It’s fair to say that we have seen an uplift in interest-only applications after both Santander and Lloyds’ announced changes in this product area.
“We’re trying to be a responsible lender and balance volume with the service and that’s why we’re waiting until Monday before we launch.”
Accord said its 90% LTV products remain available.
Michael Rogerson, director of Ashburton Financial Consultants added: "Brokers are securing a lot of business which needs to be inputted before changes come into force. This is why Accord is getting bigger peaks of business. This is likely to continue to happen while lenders review their stance on interest-only."
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I just cant understand why lenders are now stopping or reducing the loan to value on interest only mortgages another nail in the coffin for the mortgage market , but then the regulator knows better...so they think.. This will kill the housing market, in particular the 2nd time buyers which will allow 1st time buyers to come in the market place We all know about affordability and clients are very much aware of this type of mortgage, they know that they are responsible of paying off mortgages at the end of the mortgage term, so what's the problem. The way the lenders and our so called regulator is going we will not have any customers to see no mortgages to arrange and we will not need them to provide any mortgages or the idiot regulator to regulate the industry or tell the client the type of mortgage they can have. Or is it better to pay a rent of £1000 and never have your own home and make landlords more money to buy more property. It seems that both the regulator and the lenders are trying to TREAT CUSTOMERS FAIRLY and the lenders to be responsible on their lending by not allowing them to have interest only mortgage because they both feel this is not suitable...this does my head in...how does the regulator or lender know about the individuals circumstances now or what will happen in the next 25 or 30 years time...this is a bloody joke.. Take a young professional who is only able to say pay £800 a Month he can actually get a mortgage of over 200k say based on a interest rate of 4.50% interest only... mortgage is it better for them to pay rent or have an interest only mortgage whilst he is working towards achieving the goals in his career and earning more money for the future to enable him to change from interest only to a repayment mortgage. May be the regulator should listen to the people that pay their six figure salaries the IFAs and the public because at the end of the day is the public that pays rather then them making rules and have no idea what is really going on in the life's of the average man in the street I cannot for the life of me see anything wrong with interest only mortgages...most people that have mortgages are responsible people...and they know exactly what hey are taking on.
Chris
16 Feb 2012 | 12:32
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