Low interest rates in UK benefitting home seekers

sree1Home borrowers in UK benefitting from low interest rates with all making savings. The interest rate gap between low and high loan to value mortgages in the UK has reached a year-long high. According to AmTrust/Moneyfacts, Average rates have fallen three times faster for those with bigger deposits compared to those with small deposits since the referendum.

Simon Crone, commercial director of AmTrust International, Mortgage and Special Risks: “The drop in the price of mortgages is a welcome development for borrowers but the worry is the EU vote has led to a market distortion at the expense of first time buyers with small deposits, The early signs are that borrowers with small deposits may not be benefiting as much because of less competition as lenders reconsider their risk appetite and rely upon those with larger deposits instead. Private mortgage insurance is a powerful tool that lenders can use to support lending at high LTVs while protecting the taxpayer by minimizing systemic risk and keeping lending standards high.”

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