Allison and Leister, a popular UK bank, announced today that they were lowering their rates, and this news may be very good for those that need to get a mortgage refinance. The news comes right before millions of home loans are scheduled to switch to variable interest rates and experts hope that homeowners will take advantage of this offer to get a mortgage refinance before it is too late and they risk foreclosure.
Ray Boulger, at mortgage brokers John Charcol, said: “I think the Alliance & Leicester deal is significant. It will take a long time for the mortgage market to return to normality, but we may look back at the end of June and see that as the time when it stopped getting worse.”
Melanie Bien of broker Savills Private Finance said: “Lenders are starting to factor in rising living costs when calculating what a borrower can afford. But with prices continuing to rise, a reduction of £20,000 to £30,000 in the amount you can borrow is going to make it even more difficult to get a big enough mortgage — particularly if the borrower requires a bigger deposit too.”
Related reading: BrightLight
Comment on this article