After a review by the Alliance and Leicester they have found that over three quarters of mortgage brokers see their role as more advisory than ever before, feeling also that this will become even more so for the rest of the year.
The concensus of opinion from the brokers is that a lack of confidence in the housing market is the main reason for customers seeking advice. Alliance and Leicester mortgage customers are grateful for brokers advice on this and also views on the economy generally, the second key area where brokers are finding requesting for information and advice.
The director of Alliance and Leicester mortgages explained that choosing the right mortgage for the economic conditions is vitally important now so being able to ask the advice of experts is a great benefit for customers.
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In the future customers taking out an Alliance and Leicester mortgage will find a range of interest rates on offer depending on the amount of money they are putting down as a deposit.
Last week the Alliance and Leicester introduced their new stance on mortgages, with a maximum of 90 percent loan to value available. However they also introduced a lower rate when the customer can put down a 25 percent deposit, basically making it a more attractive proposition for the borrower and at the same time reducing their own risk exposure.
It has been argued that the 100 percent mortgages did a lot to create the housing market price increases, since people could simply borrow whatever was needed, without having to put down any of their own money. Those days are gone it seems, so the Alliance and Leicester stance may well be repeated by other lenders over the coming weeks.
Some Abbey National mortgage customers, specifically those looking for fixed rate mortgages, are facing rate increases of up to 0.56 percent. This comes only a week after rates were reduced by the company.
The biggest increases are in the short term period fixed rate mortgages, with the 3 year one going up to 6.49 percent from 5.93 percent. The Abbey National is citing a major increase in swap rates for the rises, feeling they will force the Bank of England to increase the base rate.
An Abbey spokesman, aiming to explain the shifts in interest rate commented on their strong market position enabling them to reduce mortgage interest rates last week, but this latest news has forced them to increase them again.
