Low Interest Rates Exist But Lenders Withdrawing Products Put Burden on Borrowers

Low Interest Rates Exist But Lenders Withdrawing Products Put Burden on Borrowers

Homeowners that have been considering a remortgage but putting it off in hopes of the lowest interest rates possible could find they have fewer choices if they wait too long. Despite the Bank of England’s Monetary Policy Committee (MPC) cutting the standard base interest rate to the lowest in over three centuries of history of the Bank to 0.1%, it may not offer borrowers the best opportunity. Those seeking a mortgage or a remortgage could find lenders offering fewer deals as they begin to pull products.

Barclays is one of the latest to pull products with their temporary withdraw of over 60 mortgage products. Most of those were offers with 60% loan to value (LTV) levels for both residential and buy to let borrowers. This left approximately 35 products still available on the market from Barclays.

Other lenders are expected to do the same with their mortgage and remortgage products. While there could be lower interest rates offered, the withdraw of products could make it more difficult for borrowers to discover a deal right for their needs or ones they qualify for if LTVs are pushed lower.

In the midst of so many changes, it could be the time for home buyers and homeowners to look to brokers for help. Since brokers work with many lenders at one time, the ability to narrow in focus on the lender that is offering the best deal for the homeowner or home buyer could be helpful. Also, many brokers have access to exclusive deals that are not offered to the general public and that one particular deal could actually be the best match for the borrower.

Not only are lenders withdrawing products, but they are also limiting the number of applications per day as staff is tightened due to the coronavirus pandemic. Other lenders will be facing the same restrictions in being able to process loans in a timely manner thus putting even more difficulty on those seeking a quick remortgage or mortgage while interest rates are low.

Experts encourage borrowers to shop online to get a quick viewpoint as to what deals are offered and encourage homeowners to discover how much of a savings could be available with deals offering lower interest rates. By doing much of the work online, the homeowner or home buyer can be ready to take the next step before opportunities further decrease during these unusual times.

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