Mortgage Price Wars

8th January 2013

The Times recently reported that the Bank of England’s £80bn Funding for Lending Scheme has triggered a '”thaw in the air” for mortgage borrowers.

Hot on heels of Tesco Bank, the report says, HSBC has launched a record low rate for the bank of 1.99% fixed for two years, although a 40% deposit is required. Mortgage brokers welcome this as a return of genuine competition in the market. They expect the “price war” to gradually trickle down to buyers with smaller deposits and predict more 95% mortgage deals in 2013 for borrowers with good credit records.

These predictions relate to the English mortgage market but Guernsey is certain to follow suit.