UK and Danish Lenders Offer Long-Term Mortgages to Boost Homeownership Amid Economic Uncertainty
Danish lenders have recently taken an interesting approach to creating homeowners. As reported by Bloomberg, Nordea Bank Abp has committed to offering 20 year loans with a fixed interest-free rate.
Although not quite to the same extreme, UK lenders are looking at offering longer fixed rates, due to the uncertainty surrounding Brexit. Virgin Money and Yorkshire Building Society (YBS) are spearheading this bid to appease cautious borrowers by issuing 15 year fixed rate loans with interest rates starting from 2.55%, as reported by Ideal Home. While this is sure to have homebuyers and homeowners rubbing their hands, it is a worrying reflection of the financial market, with lenders prepared to compromise so drastically on their rates. While the bone of contention that is Brexit has undeniably slowed the property market, this break from tradition from two of the country's biggest mortgage lenders may cause a considerable upswing in demand for homes from buyers eager to benefit from the security offered by the loan.
Developers may look to prepare themselves for the possible influx of buyers sparked by the low-interest loans, eager to cash-in before Brexit, and should therefore consider their handover processes. Spaciable is particularly well-suited to high volume projects, as customer service teams can manage multiple plots with ease, from reservation through to completion and beyond.