Market Update – 24.06.2019
Taking time with our clients
We have been on a drive of late to meet more of our clients in person, instead of just dealing over the phone or email. This is something I feel very passionately about and the below story explains why:
Jerome took the time to meet up with a prospective client even though he ‘had a broker’. During the meeting it transpired that he didn’t actually have a broker, but had just had a chat over the phone with another firm to get an idea on how much he could borrow and what the rate would be.
During the meeting, Jerome took the time to really get to know the guy and understand his situation. The result was that we were able to get the case agreed outside standard lending criteria with Halifax as it was a strong case. This meant that the client got a lower rate, faster offer and overall better service.
The moral of the story – we seem in such a rush these days to get the end result that we often forget we are dealing with people. Modern technology is great, and I am a huge fan of what it can bring to our lives, but it should never replace human contact. That is how we are wired to interact after all. So by taking the time to meet someone, understand their situation and then conduct thorough research means everyone got a better outcome. I truly believe this is what being a broker is about and we will continue to work this way. Yes, we can do stuff over the phone/email but as this story proves, that doesn’t not create any commitment and may even result in getting a worse outcome if you don’t take the time to see what is in front of you.
Bit of a change in money markets last week – SWAP Rates – 2 year money is up at 0.861% and 5 year money is down at 0.889%. LIBOR was down fractionally at 0.774%. As ever, the current Brexit paralysis is overarching everything in this area at the moment and with things in quite a mess, no impetus to put rates up in the near time (by that, I mean the next 3 months). In fact, the market view is overly pessimistic now and 5 year money looks great value!
This is relevant as banks largely price their fixed rate mortgages off SWAP Rates, and variable rates off LIBOR. On both fixed and variable rates, lenders will typically add about 0.5% as a starting point to the rates above to create the mortgage products they offer. However, the rate you will be offered is heavily dependent on your circumstances and deposit/equity level.
2 Year Variable from 1.29%
2 Year Fixed Rates from 1.35%
5 Year Fixed Rates from 1.75%
BTL Rates from 1.39%
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