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Mortgage market review - February 2016

Mortgage market update for February 2016

Macro news and trends

Flood checks set to be standard for property purchases.
Environmental searches to identify risk of flooding when purchasing a house are set to become standard, reveals SearchFlow, conveyancing search provider.
https://www.searchflow.co.uk/news/2016/flood-checks-set-to-be-standard-for-property-purchases/        

Help to buy: ISAs opened every 30 seconds.
A quarter of a million first time buyers, more than half of whom are aged 30 and under, have opened a Help to Buy: ISA since the government's landmark scheme launched on 1 December 2015. This is equivalent to 1 person opening an account every 30 seconds, or over 3,000 a day.
https://www.gov.uk/government/news/help-to-buy-isas-opened-every-30-seconds-across-uk        

House prices more than 500,000 in a majority of London areas.
Average property prices have broken the £500,000 barrier across more than half of the postcode districts in London, new figures have revealed.
http://www.whatmortgage.co.uk/news/house-prices-500000-majority-london-areas/        

Average UK house prices rise 9.7% in 2015.
House prices rose 9.7% in the year to January, up from December's figure of 9.5%, new figures from Halifax have revealed. The annual rate of growth has between 8% and 10% since the start of 2015.
http://www.lloydsbankinggroup.com/globalassets/documents/media/press-releases/halifax/2016/housepriceindexjanuary2016.pdf        

 

Regulation and legislation

Labour launches review to combat house ownership decline.
The Labour Party has announced a review of the supply of homes to be headed by Peter Redfern, the chief executive of builder Taylor Wimpey.
http://www.whatmortgage.co.uk/news/labour-launches-review-combat-home-ownership-decline/        

CML urges the Government to review stamp duty proposals.
The trade body for the mortgage industry has urged the government to reform it plans to increase stamp duty by 3% on second properties to reduce the potentially negative impacts on the housing market.
http://www.whatmortgage.co.uk/news/cml-urges-government-review-stamp-duty-proposals/        

FCA warns on self-cert mortgages.
The FCA is warning consumers of the risks of self-certification mortgages after the launch of a new lender earlier this month. The lender, selfcert.co.uk, is based in Prague and is passporting into the UK using the Electronic Commerce Directive.
https://www.moneymarketing.co.uk/fca-warns-on-self-cert-mortgages/ (log-in required)       

 

Product developments and innovation

Yorkshire Building Society offers £500 cashback to first-time buyers.
Yorkshire Building Society is offering selected first-time buyers an extra £500 cashback when they complete on a mortgage with the Society, on top of any other offers they are entitled to.
http://www.yourmortgage.co.uk/first-time-buyers/yorkshire-building-society-offers-500-cashback-to-first-time-buyers/       

Leeds reveals details of help to buy London range.
The range, which launches on 1 February, contains a 1.79 per cent two-year fixed rate with a £799 fee and a 2.45 per cent five-year fixed rate with a £199 fee. Both come with a free valuation.
> http://www.leedsbuildingsociety.co.uk/intermediaries/products/help-to-buy-mortgages/#tab:3        

Keystone simplifies classic range and slashes rates.
Keystone Buy to Let Mortgages has simplified its Classic range and has cut rates by up to 50 basis points.
http://www.mortgagestrategy.co.uk/keystone-simplifies-classic-range-and-slashes-rates/        

New lender launches into mortgage market.
New Street Mortgages has launched into the UK market as a new mass-market lending brand under the Northview Group.
http://www.ftadviser.com/2016/02/05/mortgages/new-lender-launches-into-mortgage-market-uLYRRNIVdNqPA2nQjljf1O/article.html        

Fleet Mortgages changes buy-to-let criteria.
Fleet Mortgages has made criteria changes across its new build and recent conversions lending, and for multiple occupation properties (HMO).
http://www.ftadviser.com/2016/02/04/mortgages/mortgage-products/fleet-mortgages-changes-buy-to-let-criteria-4o1BDfZAUBt7w6AWFAgaTP/article.html         

Santander to introduce two-tiered B2L affordability tests.
Santander is introducing a new two-tier buy-to-let affordability calculation as the Government's tax shake up is expected to increase costs for landlords.
https://www.moneymarketing.co.uk/santander-to-introduce-two-tiered-b2l-affordability-tests/          

 

Consumer trends

Deposits still greatest barrier to buying a home.
The latest quarterly Halifax Housing Market Confidence Tracker shows that in the final quarter of 2015, 58% of people chose this as the biggest barrier to buying a property, up one point from the last quarter.
https://www.ipsos-mori.com/researchpublications/researcharchive/3167/Halifax-Housing-Market-Confidence-Tracker.aspx        

Drawdown growth drives equity release market to new highs.
Those aged 55 plus unlocked a record amount of housing wealth via drawdown lifetime mortgages in the final quarter of 2015, pushing annual equity release lending to a new high of £1.61bn, according to the Equity Release Counl.
http://www.equityreleasecouncil.com/news/surge-of-drawdown-activity-as-equity-release-gains-momentum/        

First-time buyer activity grew in 2015.
The number of home buyers taking their first step onto the property ladder dropped by 1,300 between November and December, according to a new report.
http://www.ftadviser.com/2016/01/29/mortgages/mortgage-data/first-time-buyer-activity-grew-in-OMSmGwfy91N4B8oDQk3eYK/article.html        

 

Experts corner 

Stamp duty surcharge - your questions answered.
Stephen Barratt, private client tax director at accountants and business advisers James Cowper Kreston, answers your questions on the forthcoming stamp duty changes.
http://www.whatmortgage.co.uk/news/stamp-duty-surcharge-questions-answered/        

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