Furness Building Society is thrilled to have won the ‘Best Variable Rate Mortgage Lender’ award in the 2018 What Mortgage Awards. Winning a coveted award of this nature is a real accolade for a medium sized building society in a field dominated by large lenders and challenger banks, and it signals to the market that we are a force to be reckoned with.
We’re particularly pleased though that our award is for being the best variable rate lender, and we’d like to tell you why.
Over the last decade, with the Bank of England Base Rate at record lows, most borrowers have chosen fixed rate mortgage products. These decisions have often been based around the assumption that a Base Rate set at record lows made rate rises rather more likely than further rate cuts. After all, when BBR is at 0.50%, there doesn’t appear to be much scope for further cuts. Consequently, variable products have perhaps been a little out of fashion.
We strongly believe that a balanced mortgage market is one which provides a broad spread of products, designed to provide options to borrowers with diverse needs and preferences, and throughout the last decade we have continued to provide variable options. Today, our variable range covers some of our most interesting areas of lending and we see this as part of what a modern mutual should be about – meeting a diverse set of needs and helping as many would-be borrowers as we can.
Our variable product range is where you’ll find our cheapest product – one which has a current pay-rate of 1.49%. When you consider that this rate is available for borrowers who may well have complex needs and who therefore need human underwriting, you’ll perhaps start to see why our rates have been recognised through this award.
Our variable product range can be used to access our innovative holiday let range (where borrowers can personally use their holiday let with our blessing). It can be used to access our popular short-term lending proposition which can potentially be used instead of a bridging product. It can even be used in conjunction with some interesting niches in the Buy to Let market.
At the same time as building our product range, we have also been working on our service proposition, and we genuinely believe that we now have something pretty special. We still have all of the friendliness and helpfulness that our intermediaries have always loved, but we’re also working very hard to make sure our processes and SLAs are good enough to challenge those challenger banks who have made efficient processing their core offering.
The history of the last decade has been one of frequent talk of rate rises which have never arrived, and of contradictory opinions as to what will happen next. Of course, at some point rates will rise, but even just this week headlines have been quite contradictory with one national newspaper stating, ‘Low inflation puts pressure on Bank to hold base rate’ whilst 24 hours later another said ‘Employment hits record high raising expectations for August interest rate hike’. We would therefore urge you to look beyond the headlines and consider how our innovative variable range could benefit your clients. We think you’ll like what you find.
We’d love to speak to you today about our products and criteria. You can speak with your local BDM or call our intermediary team at Head Office on 0800 988 1561.