Mortgage market update for December 2016
Macro news and
Inflation figures to include housing
The Office for National Statistics is to include housing costs in
its headline measure of inflation from March next year. Following a
consultation, the ONS has decided to switch its preferred measure
of inflation from the consumer price index to the consumer price
index including owner occupier's housing costs from
House price rises pause in October
UK house prices were stable in October after fifteen successive
monthly increases, data from the Nationwide House Price Index
Housing market shows signs of weakness
Post-Brexit vote uncertainty could cause further weakness in an
already softening housing market, figures from the British Bankers
Association have suggested.
Housing demand climbs despite Brexit
Concerns over the UK's impeding divorce from the European Union
have not stalled the demand for housing, as a report points to the
"dire" shortage of British properties.
FCA contemplates new mortgage rules for upfront
The intellectual challenge of regulating mortgage offers that give
consumers an upfront gain for a long-term loss were discussed on
Friday (4 November) by Peter Andrews, chief economist at the
CBI tells government how to fix housing
The Confederation of British Industry has come up with a range of
initiatives to help the government meet its ambition of building
one million new homes by 2020.
High Court ruling on Article 50 will hit homebuyer
The decision by the High Court on whether the UK government can
trigger Article 50 and start the process of leaving the EU is
"unwelcome news" for the residential property market, warns one of
the UK's leading estate agents.
Lenders call for 'last-time buyer' backing from
Lenders need reassurances from regulators over an approach towards
older "last-time buyers", the Council of Mortgage Lenders has said.
Speaking at the CML's annual conference last week, the trade body's
head of policy June Deasy said there were challenges for lenders as
the UK's population ages.
Product developments and
TSB launches mortgage range for first-time
TSB has launched a range of mortgages for first time buyers, with
no product fees and £750 cashback, to help them take their first
step on the property ladder.
Nationwide launches 5 year tracker mortgage
Nationwide Building Society has announced the launch of a five
year tracker mortgage which will be available from today (9
November). Rates for the 60 per cent loan-to-value product start at
1.89 per cent with a £999 fee.
New buy-to-let mortgage from together aimed at sub-prime
Specialist lender Together has unveiled a sub-7 per cent
first-charge buy-to-let mortgage for borrowers with a 35 per cent
Fleet mortgages revamps its range of products for
individuals and firms
Buy-to-let specialist lender Fleet Mortgages has refreshed its
entire product range for individuals, limited companies and those
seeking finance for HMOs and multi-unit blocks.
Santander launches fee-free fixes and H2B equity loan
Santander has launched a range of two and five year fixed
re-mortgage products with no product fees. The new products are
available on products at 60, 75, and 85 per cent LTV, with interest
rates ranging from 1.64 per cent for a two-year 60 per cent fix, to
2.34 per cent for a five-year 85 per cent remortgage deal.
Yorkshire Building Society launches its lowest ever
Yorkshire Building Society has launched a 0.98% two-year
discounted standard variable rate mortgage - its lowest ever
Brexit hits first-time buyers hardest
First-time buyers were hit hardest in the three months following
the UK's vote to leave the European Union, according to analysis by
AmTrust and Moneyfacts.
Equity release sees year-on-year rise
The amount lent through equity release is set to hit an all time
high of £2bn in 2016, according to the Equity Release Council. For
the first nine months of the year £1.48bn has been lent for all
products, and if the figure of £2bn is broken this will represent a
26 per cent rise on 2015's total figure of £1.61bn.
Downsizers have unrealistic expectations
According to Key Partnerships, 72% of estate agents believe older
homeowners have unrealistic expectations about the money they can
make from downsizing.
Making mortgage advice easier through
It has become far more difficult for mortgage advisers to provide
potential borrowers with certainty their loan will be accepted in a
post-MMR world. For the client, it can a very emotional