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Mortgage market review December 2017

Mortgage market review December  2017 

MACRO NEWS AND DRIVERS

FCA reveals state of mortgage market decade after crash 
More than a fifth (22 per cent) of new first-time buyers will be over 65 when their mortgage matures as rising property prices put pressure on affordability, just one of the radical changes to the lending market a decade since the financial crisis.
https://www.fca.org.uk/publication/data/data-bulletin-issue-11.pdf 

House prices rise at fastest rate since start of year
House prices have grown at the highest quarterly rate since January as a lack of supply continues to hold back the market, according to Halifax.
https://www.ftadviser.com/mortgages/2017/12/07/house-prices-rise-at-fastest-rate-since-start-of-year/  

Mortgage write-offs lowest since pre-credit crunch
Mortgage write-offs have dropped to their lowest level since before the financial crisis due to a robust property market and positive default record, according to property platform Lendy. Bank of England data showed UK lenders wrote off just £72m of residential loans in 2016 to 2017 – 79 per cent less than the £348m that was written off in 2015 to 2016.
https://www.ftadviser.com/mortgages/2017/12/11/mortgage-write-offs-lowest-since-pre-credit-crunch/ 

REGULATION AND LEGISLATION

Conveyancing association wants tough leasehold reform
The Conveyancing Association is calling for laws to cap unfair leasehold fees as part of tighter regulation of the sector. The trade body made the proposals in its response to a Government consultation on leasehold reform.
http://www.telegraph.co.uk/news/2017/10/30/philip-hammond-urged-scrap-stamp-duty-budget-give-uk-economy/

ERC wants FCA clarity over retirement interest-only loans
The Equity Release Council has called for more clarity from the FCA on proposals to bring back retirement interest-only mortgages. Earlier this year the regulator announced a consultation paper on the issue.
https://www.mortgagestrategy.co.uk/erc-wants-fca-clarity-retirement-interest-loans/

PRODUCT DEVELOPMENTS AND INNOVATION

Barclays offers buy-to-let to first-time buyers
The move, which was announced in a note sent out to brokers, means borrowers will no longer need to own a residential property when looking to purchase or remortgage a buy-to-let property with the lender.
https://www.landlordtoday.co.uk/breaking-news/2017/12/first-time-buyers-offered-chance-to-get-foot-on-the-property-ladder-through-btl?source=othernews

Tenet teams up with the hanley
Financial advice group Tenet has partnered with The Hanley Building Society to boost lending choices for its members. The Hanley is the UK's 26th largest building society, with assets of £403m as of 31 August, according to the Building Societies Association.
http://www.financialreporter.co.uk/mortgages/tenet-partners-with-hanley-building-society.html

Leeds rolls out retention proc fees
Leeds has rolled out procuration fee payments to the whole intermediary market following a successful phased rollout with Connells and LSL. The 0.2 per cent fee is available for all like-for-like product transfers - those that involve no additional borrowing, or change to term or repayment method – across all areas of lending, including buy-to-let, shared ownership and interest-only.
https://www.mortgagestrategy.co.uk/santander-use-soft-credit-check-brokers/    

Santander launches soft credit checks for mortgages
Santander introduced a soft credit check process across its intermediary business to ensure customers’ credit ratings are not affected at the early stages of application.
https://www.trustedmortgagebrokers.co.uk/bank-of-ireland-provides-online-mortgage-offers/

Halifax steps in to free mortgage prisoners
Halifax has said it no longer requires brokers to provide proof of a repayment plan when customers switch from interest-only mortgages to other products.
https://www.ftadviser.com/mortgages/2017/12/01/halifax-steps-in-to-free-mortgage-prisoners/   

TSB to halve time it takes to get mortgage decision
TSB’s new broker platform is set to halve keying-in times for brokers and cut the mortgage application-to-offer time by two days.
http://www.financialreporter.co.uk/mortgages/new-tsb-broker-platform-to-halve-dip-time.html  

CONSUMER TRENDS

Amateur landlords pull plug on further purchases
Two-speed market has emerged in the buy-to-let sector as smaller landlords have stopped adding to their portfolios, according to Kent Reliance.
https://www.thetimes.co.uk/edition/business/buy-to-let-amateurs-feeling-the-squeeze-6m7z899dz    

London first-time buyers must muster £250k deposits 
Buyers in London will need to make a downpayment of almost a quarter of a million pounds to buy their first home in 2027, according to London & Country.
https://www.ftadviser.com/mortgages/2017/12/07/london-first-time-buyers-must-muster-250k-deposits/   

Homeowners forced to sell below asking price
Homeowners are being forced to sell their homes at almost 4 per cent less than the asking price, according to property website Zoopla.
https://www.zoopla.co.uk/press/releases/019/house-price-uncertainty-creates-market-deadlock/

Rate rise deters younger homeowners from climbing housing ladder
The recent interest rate rise has deterred more than one in two younger homeowners from climbing the property ladder, according to a recent survey.
https://www.churchillsloan.co.uk/blog/rate-rise-puts-off-younger-homeowners/      

EXPERTS CORNER

Variable or fixed mortgages after base rate rise
The recent report that Yorkshire Building Society has seen an upswing in demand for variable rate mortgages since the Bank of England raised base rate might at first seem counter-intuitive...
https://www.mortgagestrategy.co.uk/opinion-variable-fixed-mortgages-base-rate-rise/    

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