We often get asked who are the best mortgage lenders. Whilst products vary there are always a few lenders who consistently appear at the top. So we thought we would publish a guide that will act as a good starting point; as to where to begin your own research. Simply pick a heading that represents your mortgage situation. Here it is:
Small deposit mortgages / first time buyers / 10% deposit
Throughout 2009 and into 2010 we will see HSBC and NatWest reign at the top for these mortgages. You can't fault HSBC rates at the moment but they do expect both the applicant and the property to be rosy. This means they don’t like bad credit and they generally will not lend on properties that require work or property near / above a shop or commercial premises.
By contrast, NatWest will consider these types of property and most often lend based upon the valuers comments. NatWest are the easy going HSBC with similar rates for those with a 10% deposit.
Buy to Let mortgages
The divide this year (expected to continue in 2010) has been TMW (The Mortgage Works), with unbeatable rates but you need a 30% deposit. Apart from the requirement of the extra capital injection; TMW is the most flexible buy to let lender at present. TMW, who coined the phrase “common sense lending”, look set to continue their flexible approach in 2010 with rumours of them returning to HMO lending.
On the other side we have BM Solutions who will continue to top the market in 2010 for those with a 25% deposit. They still remain relatively straightforward to deal with, far more so than the likes of NatWest and C&G (especially if you are self employed) as long as you meet their criteria.
Remortgages
A bit of a null area this year as most borrowers have chosen to stay on their variable rate. When tempted Abbey have offered the most ‘no fee’ products; these allow you to remortgage without paying upfront survey costs and legal fees. Make sure you allow plenty of time though as Abbey are the worst lender out there when it comes to delays; expect alot of stalling.
Best of the rest
For those with a 25% deposit and up the choices will be between Nationwide, Abbey, Woolwich and going forward Northern Rock! Yes Northern Rock are looking to lend competitively again to those with a big enough deposit.
