Certainty in uncertain times
Fixed rate products and improved deals pave the way for increased mortgage sales
Sarah Howe, CEO, Harpenden Building Society
As I consider the current economic climate one thing for certain is ‘uncertainty’ and the negative impact this brings. One area of the economy particularly impacted has of course been property sales. Are there better days ahead, my answer is ‘yes’!”
We’ve all seen the bleak ‘what if’ headlines of recent years negatively impacting the level of property transactions, some may say creating a self-fulfilling prophecy. What is encouraging however are signs that confidence is returning amongst buyers and sellers and with it opportunity for lenders, intermediaries and support services to grow their mortgage business as the market recovers.
Growing market
Figures from HMRC show house sales rose by 5% between August and September 2019 the highest monthly total seen in 2 years illustrating how the tide is beginning turn.
Homeowners and those considering a purchase can also be encouraged by an overall increase in property value with the average UK house price rising to £235,000 in August 2019, £3,000 higher than August 2018
The background
Three years of Brexit, political instability on an unprecedented level and bleak economic forecasting real or otherwise added to the fear factor amongst people considering moving house or buying a first property. Despite this recent backdrop the situation is beginning to improve. One important factor is lenders launching increasingly competitive and innovative mortgage products kick starting customer demand and helping to lead to a more optimistic outlook. We’re doing just that at Harpenden Building Society.
Opportunity to grow sales
Brokers are in an increasingly strong position to grow business by introducing these new and improved product ranges to their customer base. Even greater opportunities exist with specialist lenders who take the time to deep dive into a customer’s financial situation with a positive mind set to say ‘yes’ wherever possible, even to those with the most complex mortgage applications.
New business for brokers
Customers can sign up to a wide range of deals being introduced to the market right now with enhanced rates and the opportunity to lock into fixed rate mortgages giving customers more confidence within their financial situation.
The desire for home ownership remains strong with property still performing well as an investment option. Although no one can exactly predict market patterns in coming years my view is brokers will have a significant opportunity to build mortgage sales in a recovering market during 2020.
Harpenden Building Society has recently launched a fixed rate mortgage to create the ‘certainty’ needed by many of its customers with regard to mortgage repayments. Intermediaries can call 01582 765411 to find out more.
For Intermediaries - View the full 2 Year Fixed Rate mortgage product features here
Key Features
- Mortgage; Residential Owner Occupied - Fixed Rate Term 2 years
- Initial Fixed Rate Repayment/Interest-only: 2.75%
- Followed by a Variable Reversion Rate: 4.19%
- Minimum Loan Amount - £150,000
- Maximum Loan amount - £1,000,000 (£1m+ to be referred)
- Available for Purchase, Re-mortgage, Release of equity
- Repayment type: Repayment, Interest-only, part & part
- Arrangement Fee: £1,999
- Admin Fee: £100 (Refunded upon completion)
- ERCs 2% for year 1 & 1% for year 2
- Procuration Fee 0.3%