As we ended the first half (of what has been a hell of a start) to the year, I thought it would be interesting to see what, if any changes there have been in our mortgage lending. In the lenders we used in the first half of 2019 vs 2020, the results of which you can see below. I have purely put our top 10 lenders up, as with most things in business, the 80/20 rules applies. So while we used a total of 68 lenders through this period, the top 10 often tells you the most in terms of trends:
Mortgage lender big winner
By far and away, the big winner has been HSBC. To more than double your market share in mortgage lending in a 12 month period is really quite impressive. This is no surprise though, as through lockdown HSBC were one of the very few lenders to actively engage with us and keep us regularly informed of changes, both positive and negative. This meant were were able to put the right clients, with the right bank, more effectively. Which is the essence of being a mortgage broker after all.
Mortgage lending top spot
No surprise that Barclays tightened their grip on top spot.
As new lending/purchase business dried up through lockdown, going back to your existing lender was often the best (or sometimes only) choice.
As some lenders stopped lending completely, or were extremely restrictive, again, no surprise we saw an increased % of business going to the banks that were ready and able to deal with lockdown. So as the market opens up again, and more lenders come back to the table, we’ll see our business spread a bit further. But has this bucked a few long term trends?
Halifax have slowly been creeping up our rankings the last few years as they are as reliable as ever. HSBC as already mentioned above, have moved on hugely. Considering that they disregard brokers entirely only a short while ago, that is an epic turnaround to win over us cynical brokers. So while Barclays are sitting pretty for now, and have (and I suspect will be for a good while) been a good fit with our clients for a long time due to their excellent underwriting of more complex incomes, how long will that last? I do expect that picture to change for the second half of 2020 as other lenders are showing a real appetite to do larger and more complex mortgages again.
Reliable mortgage lending partners
The big lesson has clearly been that through a turbulent time, we have stuck to the reliable partners we work with.
Such is true in life (I saw the divorce rate decreased through lockdown with a report showing that to be a longer term trend. Every cloud and all that) as when times get tough, you lean on those you can trust the most. So a huge thank you from me for our top 10 lenders who supported us, and our clients, so well through such a tough period.
Money markets pretty much flat in the last week. So our consistent view for a long time that we expect just more than one base rate rise in the next 5 years, seems to be the expectation now.
However, I feel that is an overly pessimistic view based on people’s opinions right now, so we may well see more than that. It does look clear that rates are staying very low, for a very long time.
In the last week:
3 Month Sterling Libor = flat at 0.137%
2 Year SWAP = down by 0.025% to 0.189%
5 Year SWAP = up by 0.002% to 0.255%
2 Year Variable from 1.05%
2 Year Fixed Rates from 1.06%
5 Year Fixed Rates from 1.34%
BTL Rates from 1.19%
The actual rate you will be offered will be dependent on your personal circumstance and deposit level. Please speak to one of our advisers so that they can guide you through this process
Source: Twenty7Tec July 2020
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