| With the housing market is now showing marked signs | | | | £2 million. And the arrangement fee is just |
| of recovery, especially in the South and London, the | | | | £499. If you've got a larger deposit, at least 25%, |
| number of homeowners mortgaging for more than | | | | then there are several other deals around at 3.99% - |
| £500,00 is increasing. (Also see Latest Market | | | | again for a two year fix usually with a fee of just a |
| Facts at the end of this article.) | | | | quarter of a percent. |
| Previously, prospective borrowers for these mega | | | | Latest House Market Facts |
| mortgages have experienced a mixed reception from | | | | In March, the average achieved sales price was 94% |
| the lenders - sometimes the lenders would provide the | | | | of the asking price. |
| facility but viewed them as higher risk. For that reason | | | | The average number of viewings to sales was 11. |
| lenders typically charged a premium rate of interest. | | | | During March house prices in England and Wales rose |
| But no longer. The tide has turned. | | | | by 0.5% driven by buoyant London market. London |
| Mega mortgages have well and truly joined the | | | | prices grew by 1.1%. |
| mainstream and lenders are now competing hard for | | | | This is the fourth month in succession of house price |
| the business. Instead of facing a premium, borrowers | | | | growth. It's also the highest monthly rise since the |
| are being offered around a quarter of a percent less | | | | summer 2004. |
| than comparable deals for more normal sized | | | | Over the last 12 months house prices rose by 0.1%. |
| mortgages. This is because lenders are increasingly | | | | The performance of the London market results from |
| basing their lending decisions on the borrowers ability to | | | | of a number of factors: |
| afford the mortgage with lesser emphasis being | | | | · A shortage of new housing coming onto the |
| placed on the security provided by the property. It also | | | | market |
| helps that interest rates remain low. | | | | · London has underperformed in terms of house |
| If you're a potential mega mortgage borrower, you'll | | | | price growth over the last few years. This in turn has |
| find that the banks will generally be the most | | | | meant that incomes and house prices in the capital are |
| welcoming. Compared to building societies and other | | | | more closely aligned than in other regions. |
| mortgage lenders, banks tend to set higher lending | | | | In other parts of England and Wales, levels of |
| limits. Some smaller lenders still set a cap at | | | | affordability remain stretched. |
| £500,000 whilst others restrict the amount they'll | | | | At a local level away from London, prices have picked |
| lend against an individual property. But perhaps the | | | | up - mainly in cities in the South of England. Berkshire |
| best way of finding a really competitive mega | | | | (0.7%) and East Sussex (0.6%) performed well. |
| mortgage is to go through a specialist mortgage | | | | Cities in the North saw slower price growth, with |
| broker. In the current market, any broker worth their | | | | Newcastle, Liverpool, and Manchester all reporting |
| salt will be able to source a great deal on six and | | | | growth of just 0.1%. |
| seven figure mortgages. | | | | The under-performing counties were Derbyshire |
| For example, the Halifax will lend up to 90% on a | | | | (-0.1%) and the Isle of Wight (-0.1%). |
| 4.49% fixed rate for a two years on mortgages up to | | | | |