Lower than a 4 you say...a 3!!!!

Some of your may remember Play Your Cards Right with Brucey Forsyth and his many catch phrases. "Nice to see you, too see you nice!" "You get nothing for a Pair...NOT IN THIS GAME!" and my old personal favourite "Your such a good audience...so much better than last weeks! Well you remember the game. The card would show and the contestants would guess higher or lower than that card. Imagine you are a contestant, and a 4 shows. "Higher or lower my luvs, want do you think?" Well low and behold, its gone lower. The crowd gasp in amazement...aahhhhhhhhhhhhhhh

Who would have thought early part of this year with the inflation figures as they were that we would have seen 5 yr fixed money go under 4%. Not many of us that's for sure. With inflation getting "higher, higher!!" (okay I'll stop the Play Your Cards Right now) it seemed inevitable that it could only be controlled by The Bank Of England increasing the base rate. Wrong. Mervyn King talked of tackling inflation over the medium term not short term, talk of inflation dropping by the end of the year has built and next thing you know...its bonjour 5yr fixed money at 3.89%.

Its been a crazy week. A great week, if I am honest. Its been a right mixed bag for me. My biggest mortgage to date looks like it may be a goer (8 digits no less!), I've done buy to lets again, New builds, income stretches and even self employed clients with less than one years accounts (a one off and some truly beautiful underwriting from Northern Rock!). I have seen a lot of business this week and I have seen a lot of variety. It fills me with encouragement it really does. As the week draws to a close we say goodbye to the phenomenal "broker only" rates that Abbey gave us for a week (supporting the broker channel is another great thing). A two year tracker at 1.99% (1.49% above base) and also a 2 yr fixed at 2.89%. What stunning deals! Simply stunning.

Whilst they were only with us for a week, they were a welcome visit and we look forward to them coming to stay again soon. In fact, I firmly believe we will see plenty more of these from other lenders. It is no secret a lot of lenders are way down on their targets, and recent attempts to boost lending from Abbey and also Paragon (through their Mortgage Trust channel) with small tranches of very sexy funds, I think, will become more common as the end of the year approaches. Lenders will want a decent pipeline of business to take into 2012 and as the reality sets in that they are behind, these rates will become more common place.

With it, in my opinion will also come a more lenient scorecard too. What is the point of having such great deals if everyone will fall at the second hurdle by failing the scorecards. I have seen lenders becoming a little more flexible in their underwriting lately. I have seen cases that 6 - 12 months ago would not have stood a chance, suddenly get through and it is all because appetite is growing again. Flexible, yet comprehensive underwriting is the key to getting us through these tough times and I genuinely do see some lenders bending over backwards to try and help again. More buy to let products are coming to the market, more 90% deals are appearing and scorecards are most definitely dropping.

So whilst we continue to read of repossessions likely to be higher in 2012, lets look on the market confidently. 5 yr fixed money starting with a 3?! Come on, that is great. I mean how low do we want it to go?!!!! Any lower they'll be giving it away. "Bottomed out" is a phrase I think that is used too often, but lets be honest, banks can't really go too much lower can they. Trackers starting with a 1. 2 yr fixeds starting with a 2 and lower scorecards.

I would like us all to take time out, stand up...come on get up...and applaud the banks this week. They have given us a lot more than they have done all year. It is a good time to be a broker, its a good time to be a borrower (especially if you can secure 5yr money starting with a 3) and its a good time to be an agent. Activity will no doubt increase of the back of the banks scorecards dropping and pricing more competitively.

So, here's to a positive 2nd half of the year. I have a feeling its going to be a good one.

And don't forget...keeeeeeeeeeeep dancing! Oh no, wrong program.

Sorry Bruce.

Erh..Sir Bruce.