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Lower mortgage rates have been accompanied by higher fees says FT

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Lenders lower mortgage rates but raise hurdles – says Sharlene Goff on

‘Borrowers are having to meet tougher lending terms, just as the cost of mortgages has started to ease, as banks restrict their best deals to a shrinking pool of customers’ – says an article on today.

‘The biggest rate cuts are only benefiting borrowers with deposits of 35 or 40 per cent. Lenders have also introduced more loan-to-value tiers and many now have different rates for borrowers with 25 per cent, 35 per cent and 40 per cent deposits.

Borrowers with deposits of less than 25 per cent are having to pay around 2 percentage points more, and are only being offered fixed rates. Banks are limiting the amount of lending they do on tracker rates as they fear interest rates could fall sharply. There are currently no tracker deals available for loan-to-values over 75 per cent.’

To read the full article click here.

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