Competition is great for the mortgage market: it keeps lenders creative and creates more choice for borrowers.
We’ve talked before about how competition can keep rates low, even when buyers borrow more of the value of their houses. We’ve also discussed how lenders compete to win customers on their fixed-rate mortgage products.
It’s easy to see this competition, because the rates are advertised and promoted to the general public.
But, there is a whole category of lender which most people don’t know about: intermediary lenders. These lenders don’t directly supply mortgages to buyers, they offer their products through brokers and independent financial services (like us). And, their competition is just as real, as they offer incentives and cut rates. The only difference is that their audience isn’t the borrower – at least, not directly. They’re competing for the attention of the mortgage brokers.
For example, have a look at Accord Mortgages, who have recently cut their rates by up to 0.25% on a range of their products. They’re also offering some cash incentives, and a free valuation. Just like any other player in the market, they are out to win more business.
Here at Limetree we look at the whole market of available mortgages, and find the best product to suit our our client’s individual needs. So, intermediary lenders are another string to our bow, and we pay attention to the rates.
If you’re looking to buy property, or looking for a better mortgage deal, give us a call. We have access to a huge range of mortgage products.