Market Update
Perspective, and some would say Smoke and Mirrors, continues to pervade in the ever-changing marketplace.
With a list covering from A to Z of Lenders who are no longer trading, the problem is that remaining Lenders keep moving goal posts. The natural excitement of a ‘provisional Yes’ for many applying for funding is soon replaced by taking the bunting down when Underwriting change their criteria and perhaps push finance out of reach for these many would-be borrowers. Jumping through multiple hoops has never been uncommon for the right product but it most definitely has had the bar raised….and is set to continue to rise.
Rates
We predicted Interest Rates would rise for Fixed-Rates and now a high 5 year term has become the only option available for some. However, with LIBOR rate now at an historic low, there are some Lenders gaining confidence to dip their toes in the marketplace and open “special” products to test the market. Whether these products will remain is still too early to predict.
Commercial
Signs are showing that Banks are beginning to offer degrees of negotiation for SME’s, however the jury is still out as to whether they are fully engaging from the small business perspective. The funds that should be available are still being protected from risk and cherry-picking acceptances remains the attitude. The majority of SME’s will have their own school of thought regarding the need for cash flow and we always welcome further discussion with you on this subject.
Buy-To-Let
In the South East, in response to a Government initiative to attract Institutional investment in the housing market, Aviva is currently working on a project to bulk-buy and rent-out new-build, large-scale developments with a reputed £1Bn budget available. The impact on the existing rental market may be positive or negative depending upon the eventual property prices and rental incomes demanded.