Mortgages The Return Of The Mega Mortgage

Mortgages The Return Of The Mega Mortgage



Mortgages .​
The Return Of the​ Mega-Mortgage.
With the​ housing market is​ now showing marked signs of​ recovery,​ especially in​ the​ South and London,​ the​ number of​ homeowners mortgaging for more than £500,​00 is​ increasing .​
(Also see Latest Market Facts at​ the​ end of​ this article.)
Previously,​ prospective borrowers for these mega mortgages have experienced a​ mixed reception from the​ lenders – sometimes the​ lenders would provide the​ facility but viewed them as​ higher risk .​
For that reason lenders typically charged a​ premium rate of​ interest .​
But no longer .​
The tide has turned.
Mega mortgages have well and truly joined the​ mainstream and lenders are now competing hard for the​ business .​
Instead of​ facing a​ premium,​ borrowers are being offered around a​ quarter of​ a​ percent less than comparable deals for more normal sized mortgages .​
This is​ because lenders are increasingly basing their lending decisions on​ the​ borrowers ability to​ afford the​ mortgage with lesser emphasis being placed on​ the​ security provided by the​ property .​
It also helps that interest rates remain low.
If you’re a​ potential mega mortgage borrower,​ you’ll find that the​ banks will generally be the​ most welcoming .​
Compared to​ building societies and other mortgage lenders,​ banks tend to​ set higher lending limits .​
Some smaller lenders still set a​ cap at​ £500,​000 whilst others restrict the​ amount they’ll lend against an​ individual property .​
But perhaps the​ best way of​ finding a​ really competitive mega mortgage is​ to​ go through a​ specialist mortgage broker .​
In the​ current market,​ any broker worth their salt will be able to​ source a​ great deal on​ six and seven figure mortgages.
For example,​ the​ Halifax will lend up to​ 90% on​ a​ 4.49% fixed rate for a​ two years on​ mortgages up to​ £2 million .​
And the​ arrangement fee is​ just £499 .​
If you’ve got a​ larger deposit,​ at​ least 25%,​ then there are several other deals around at​ 3.99% - again for a​ two year fix usually with a​ fee of​ just a​ quarter of​ a​ percent.
Latest House Market Facts
In March,​ the​ average achieved sales price was 94% of​ the​ asking price.
The average number of​ viewings to​ sales was 11.
During March house prices in​ England and Wales rose by 0.5% driven by buoyant London market .​
London prices grew by 1.1%.
This is​ the​ fourth month in​ succession of​ house price growth .​
It’s also the​ highest monthly rise since the​ summer 2004.
Over the​ last 12 months house prices rose by 0.1%.
The performance of​ the​ London market results from of​ a​ number of​ factors:
· a​ shortage of​ new housing coming onto the​ market
· London has underperformed in​ terms of​ house price growth over the​ last few years .​
This in​ turn has meant that incomes and house prices in​ the​ capital are more closely aligned than in​ other regions.
In other parts of​ England and Wales,​ levels of​ affordability remain stretched.
At a​ local level away from London,​ prices have picked up – mainly in​ cities in​ the​ South of​ England .​
Berkshire (0.7%) and East Sussex (0.6%) performed well.
Cities in​ the​ North saw slower price growth,​ with Newcastle,​ Liverpool,​ and Manchester all reporting growth of​ just 0.1%.
The under-performing counties were Derbyshire (-0.1%) and the​ Isle of​ Wight (-0.1%).
The areas reporting the​ highest rises in​ March were all across London: Central London & City (1.9%),​ East London (1.4%),​ North London (1.2%),​ West London (1.2%),​ South-West London (1.0%) and South-East London (0.8%).
In March the​ national average house price stood at​ £162,​500.




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