Mortgage market update for February 2017
Macro news and drivers
Threesixty backs new club for mortgage
Service provider Threesixty has backed the launch plans of
equitable mortgage club The DA Alliance. Around 120 brokers,
controlling lending of £2.3bn,have already showed interest in
signing up to the alliance, which is the brainchild of London Money
director Martin Stewart.
Won't move? Can't move!
Helping homeowners move house could assist first-time buyers get
on the housing ladder, the Council of Mortgage Lenders has said.
The CML has pointed out that while the number of first-time buyer
transactions is recovering since the crash, the number of home
movers has barely increased.
Property transactions nudge up
The number of residential property transactions increased by just
0.2 per cent at the end of last year. According to HM Revenue &
Customs there were 97,250 such transactions in December, up by 220
from the previous month.
Quarter of brokers struggle to explain offset
Borrowers are failing to benefit from an offset mortgage due a
lack of understanding of they how these deals work, research from
Accord Mortgages revealed.
House prices stable despite earnings
House price growth remained stable in the first month of this
year, despite there being signs of a slowdown in the British
economy that could put pressure on the housing market.
Cashback for first-time buyers decreasing
The mortgage cashback era is coming to an end, according to the
latest data. According to research compiled by Moneyfacts, cashback
deals have decreased over the past two years.
Regulation and legislation
The impact of Brexit and taxation on BTL
- The past year has been rather unsettling for the
UK's buy-to-let market. Firstly there were a number of regulatory
and tax changes which unfolded, creating a degree of uncertainty
among landlords and tenants.
HMRC's stamp duty tax take soars
In the last three months of 2016 HM Revenue & Customs earned
£519m extra from the 3 per cent surcharge payable on stamp duty for
CML calls for review of lending rules
The Council of Mortgage Lenders (CML) has challenged the Financial
Policy Committee (FPC) to review its rules for borrowers, following
criticism of the higher rate stress tests.
Product developments and innovation
Castle trust overhauls online service for
Castle Trust has relaunched its mortgage proposition, with a new
website and telephone number to make it easier for brokers to do
business with the lender.
Aldermore halves demand for self-employeds'
Mortgage provider Aldermore is to reduce the minimum accounts
history a borrower must provide when applying for a residential
mortgage from two years' history to one.
TSB cuts BTL rates and triples
TSB has applied a 0.10 percentage point discount on its entire
buy-to-let range while upping rates on selected residential fixes -
both for home movers.
New mortgage offer for self-employed
The self-employed, contract workers and those with less than
perfect credit histories are being offered a tailored fee assisted
remortgage offer by The Mortgage Lender (TML). The provider, which
only deals through intermediaries, is offering to two-year fixed
rates on loans up to 85 per cent loan-to-value, with rates starting
from 3.41 per cent.
Accord overhauls offset range
Accord Mortgages is to launch five new options to its offset range
from 1st February including a choice of mortgages with
no upfront fee. The new offsets are available to both buyers and
borrowers looking to remortgage over a choice of different
Fleet Mortgages launches individual landlord
Buy-to-let specialist lender Fleet Mortgages has launched two new
products for individual landlords. From 31 January, advisers will
have access to two-year fixed rates, both offered at 75 per cent
loan-to-value (LTV) with a rental calculation at 125 per cent at 5
Metro Bank slashes fixed rate mortgages
Metro Bank has launched a record low five-year fixed rate up to 65
per cent loan-to-value (LTV) at 1.84 per cent.
Atom Bank expands digital mortgage range
Atom Bank has has extended its digital mortgage range with 80 and
85 per cent loan-to-value (LTV) deals on two and five-year terms
across purchase and remortgage.
Over-55s spending tax-free cash on
People over-55 are increasingly spending their tax free pension
allowance on holidays and living expenses, research by Fidelity
International has revealed. That meant almost as many people used
their pension savings to pay for a holiday as used it to pay off
their mortgage (10 per cent).
Industry can profit by embracing AI
Artificial Intelligence (AI) has been around for a long time,
dating back even beyond Alan Turing's seminal work in the 1940s.
The idea that machines can conduct cognitive functions and be
capable of learning and problem-solving has gone through several
periods of hype and disappointment.
Steve Bolton - RLAM - via https://www.ftadviser.com/investments/2017/01/30/industry-can-profit-by-embracing-ai/?page=2