The lending landscape merry-go-round

With the local lending landscape in a constant state of flux, it can be difficult keeping track of where the best deals are for your specific loan. Banks and starting to dip their toes back into the investment lending space with even the regulator starting to say that the tightening around investor loans may be easing in the not too distant future.

As you would be aware, the banks appetite for specific types of loans is reflected through their rates and pricing and this has an impact on you the borrower. With the recent testimonies by all the major bank bosses in front of the parliamentary committees over recent weeks, it is quite obvious that profitability is very much at the front of their decision-making process when it comes to pricing or re pricing their loan books. As customers, you need to be vigilant to ensure that you are getting the best overall deal, of which rate is a major component.

Some of the key changes over recent months that you should be aware of are as follows:

·         Owner-occupied loans with principal and interest repayments are still in strong demand with all banks/lenders and the hence the best rates on offer are for these loans. Market leading rates are around 3.68%

·         Investment loans are back in vogue, with many major banks as well as second-tier lenders keen to build this part of their loan books back up. Market leading rates are around 3.89% for principal and interest repayments and 4.38% for interest-only repayments.

·         Bridging loans are still in strong demand and a number of attractive solutions are available that don’t require you to sell your property before you buy another one. A great advantage to have in the current market.

·         Non-resident loans – there are a few options that have become available for these borrowers – so whilst this space is still very tricky, there are a couple of specialist solutions

As always, the LogiX team are here to help you with any queries/inquiries regarding property loans or all kinds of finance. Please feel free to contact us if you have any questions.