Mortgage market update for April 2017
MACRO NEWS AND
House prices in cities rise but London drags on
House price inflation in cities rose 6.4 per cent in February
year-on-year, compared to a 2016 average of 7.8 per cent, according
to new figures from Hometrack.
House prices up £100k in areas that add most
House prices have soared by almost £100,000 in areas that have
seen the steepest declines in unemployment over the past decade.
Price gains have been almost double the national average over the
past ten years in the 20 parts of the country with the most
dramatic drops in unemployment
House sales hit 10-year high but
Figures from the National Association of Estate Agents (NAEA)
Propertymark reveal the number of sales agreed rose to a 10-year
high in February, to 11 per branch - the highest since September
House price rises slow in March
The rate of growth in the British housing market shrank this
month, as the number of people owning their own home dropped to its
lowest level in more than three decades.
Waltham forest tops london FTB house price
Prices in the north-eastern London borough rocketed by 93 per cent
from an average of £212,629 in 2012 to £409,491 in 2017, according
to research by Lloyds Bank.
Mortgage approvals down in February
The total number of approvals dropped from 69,114 to 68,315
between January and February, although they remain well above the
six-month running average of 66,000 according to latest data from
Government reveals help to buy ISA take-up
Nearly 260,000 people have bought a home using one of the
Government's Help to Buy schemes and more than 868,000 have opened
a Help to Buy Isa. 84 per cent of the Help to Buy completions are
first-time buyers and that the average house price across the
scheme is £192,854.
PRODUCT DEVELOPMENTS AND
Pru buys £12bn Bradford & Bingley buy-to-let loan
The Government has agreed to sell its Bradley & Bingley loan
book for £11.8bn to Prudential and to funds managed by US private
equity firm Blackstone. The portfolio of mortgages was acquired by
taxpayers during the financial crisis.
Scottish widows takes axe to re-mortgage
Scottish Widows has cut fees by up to £500 on its re-mortgage
range, including the option to offset. Fees on the bank's 2 and
5-year fixed rates have been reduced from £1,499 to £999, with
rates as low as 1.29 per cent at 60 per cent loan-to-value.
Coventry launches buy-to-let range
Coventry for intermediaries has launched a 50 per cent
loan-to-value (LTV) buy-to-let range. The lender is offering a
2-year fix at 1.49 per cent and a 5-year fix at 2.59 per cent, both
of which come with early repayment charges (ERCs) and a £1,999
Pepper launches fixed rate deals for L&G
Pepper Homeloans has launched a range of two-year fixed rates
starting from 2.4 per cent exclusively through Legal & General
Mortgage Club. The new range is available for purchases or
remortgages up to 85 per cent loan-to-value and is aimed at
borrowers who may have been declined on credit score, but who
haven't had any CCJs or defaults in the past 48 months.
Nationwide allows families to help relatives buy
A mortgage that enables families to raise funds from their
existing property to help relatives buy a home has been launched by
Nationwide. Rates start at 1.15 per cent for the two-year tracker
and 1.2 per cent for the two-year fixed rate, both with a £999 fee
- a discount of 0.09 per cent on the core product range.
Teachers launches online mortgage portal
Teachers Building Society has launched a new online end-to-end
mortgage application portal for intermediaries. A dedicated
intermediary team will also be available to deal with any
West Brom offers cashback boost for first-time
Building society the West Brom has doubled the amount of cashback
for first-time buyers and cut product fees after a review of its
Affordability of local housing
New research from Cicero Research shows affordability is the
single biggest housing issue in the UK with almost one-quarter
(24%) of people claiming they cannot afford to buy any properties
in their local area. With house prices increasing at twice the
increase in wages, the research shows that a further two-thirds
(65%) believe that all or most local housing is no longer
House price sentiment 'back to pre-referendum
Consumer expectations about house prices have bounced back to
pre-EU Referendum levels after a period of uncertainty following
last year's vote to leave the EU.
Equity release on the increase
The amount of money unlocked using equity release has hit record
highs, surpassing the £2bn mark for the first time in the sector's
One in four think they will never own a
New research into 'Generation Rent' by Halifax revealed more
evidence of the affordability problems facing aspiring homeowners,
with one in four 18 to 34-year-olds thinking the only way they will
manage to buy a house is by inheriting cash.
First-time buyers relying on mum and dad at 'historic
The proportion of first-time buyers in England relying on the
so-called "Bank of Mum and Dad" has reached more than 34 per cent,
according to research for the government's Social Mobility
Should the government scrap Right to Buy?
In a plan mirroring Margaret Thatcher's sale of council homes in
the 1980s, the government has extended Right to Buy to housing
association tenants. However, the scheme has come under fire from
property experts who believe it will do little to tackle the