Things must be getting serious in the lending market when the words “price war” are so liberally scattered around. Regardless of the media hyperbole, lenders have entered Q4 in full competition mode as they seek to ensure they hit their 2014 lending targets.
This is good news for brokers and clients as mortgage availability appears to be picking up. The most recent credit conditions report from the Bank of England suggests lenders themselves believe access to mortgage finance will improve in the last three months of the year.
But how likely is this momentum to continue into 2015? Is it just a “Fill your 2014 boots” exercise by lenders as they play catch-up or will their competitive edge last into next year?
This looks like a pre-base rate rise competition period and the price war is likely to be maintained until rates go up. In which case, we could be in ultra-competitive mode for at least another six months if we believe predictions that rates will not rise until after the general election.
Whatever the length of this period, it represents a major opportunity for advisers and we should make the most of it.
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