Mortgage blog: Three little-known lenders you should ask your mortgage broker about
The UK's large lenders dominate the mortgage market. Almost eight out of ten mortgages in this country are issued by just six big lenders and so market commentators have voiced concerns that these mammoth companies are too big to ensure strong competition.
However, there are rival lenders out there who claim to offer better deals and service, and a lot more flexibility. So, we've put together a guide to three lesser-known mortgage lenders that you should ask your mortgage broker about before committing to your next home loan.
Accord is part of the Yorkshire Building Society, the second largest mutual lender in the UK after Nationwide. The company offers deals through brokers and aims to offer rates that the Yorkshire couldn't afford to provide through its expensive network of branches.
Accord is often a good choice if you are a self-employed borrower whose income is harder to prove. They can also take a more sympathetic view towards you if you have experienced credit problems in the past.
With a dizzying range of products it can pay to seek professional advice. The Daily Mail reports that Accord currently has nearly 50 different rate and fee combinations for two-year fixes alone. These range from 1.99 to 5.49% depending on the fee you decide to pay and how much deposit or equity you have.
If you're looking for an underwriter to assess your mortgage application rather than a computer, Metro Bank could be for you.
Keith Osborne from whathouse.com says: "Metro Bank take an old fashioned approach to your application and assess it individually rather than running it through a computerised credit score. It means that you are more likely to be approved for a mortgage if your circumstances are out of the ordinary. And, they are good at helping you if you are a high net worth borrower looking for a loan of over a million pounds."
Metro Bank's best-buys include two-year fixes from 2.69% and five-year fixes from 2.99%.
Born out of the failed Northern Rock, Virgin Money is taking an aggressive stance towards interest rates and regularly features in ‘best buy' tables.
Virgin Money is one of the few lenders to offer three year as well as two and five-year fixes. Its lowest three-year deals start at 2.4% while five-year fixes start at 3.05%.
Click here to find out more about how Whathouse.com can help you find the right mortgage.