All over the newspapers and television you will struggle not to have read and heard about the credit crunch and the number of lenders in the mortgage market withdrawing deals. However rest assured that it is still possible for dentists to secure great mortgage deals.
Several high street Banks & Building Societies have returned to the 95% Loan To Value (LTV) market in the recent weeks although the rates reflect the perceived risks of the higher LTV with rates starting at 7.29%. If you do require 100% then you will need to finance the deposit elsewhere, either with a loan from a relative or another financial institution.
A 25% deposit or equity is where you see a major reduction in interest rates with rates available from around 5.69%, and if you happen to fall into the sector with a 40% deposit then you may be eligible for rates as low as 5.49%!
If you are in the position where you took out a 100% mortgage and are now looking to remortgage, then your first port of call should be your existing lender. Even if they are not accepting new business at high LTV's, many lenders still have retention products available to existing customers and you may even find that the lenders standard variable rate is just as competitive, particularly if your mortgage happens to be with Scottish Widows bank!
Yes it is true that the mortgage market has had a bumpy ride this year. The Bank of England has been reducing the base rate, but the mortgage rates on offer to new customers have been increasing (basically lenders have been increasing their margins to increase profits and reduce the risk!).
Fixed rates have also been increasing as these are guided by the price of money being bought and sold between the different banks (known as swap rates). However the last few weeks has seen a fall in mortgage rates and a return to the higher LTV's by a few lenders, which means a calmer lending market than we had earlier in the year!
As the mortgage market moves through these changing times the need for truly independent mortgage advice is crucial. Rates and criteria are changing rapidly and in order to be certain you are getting the best advice you need to work with a company that has access to all lenders. Independent companies will also contact your existing lenders to see what rates they are offering taking all the work away from you!