Mortgage market update for January 2016
Macro news and drivers
House price rises accelerate in December
The rate of increase in average house prices leapt to 0.8 per cent
in December, according to figures from Nationwide. It marks a steep
increase from last month, when prices average prices climbed just
0.1 per cent.
Govt to directly comission building of 13,000 new
The Government has kick-started its affordable homes programme by
announcing the fast-track building of thousands of houses on
Equity release boom predicted for next two
Independent research conducted on the firm's behalf in November
with 106 advisers specialising in retirement planning, found 65 per
cent anticipate an increase in client enquiries relating to equity
release to fund at least part of their retirement.
Flooding risk is cripling the value of
According to third party mortgage administrator HML, properties
classified as at high risk from flooding in the North West and
Yorkshire and Humber regions of England increased in value half as
fast between 2005 and 2014 as those at no flagged risk (17%
compared to 9%).
Regulation and legislation
Pressure builds on lenders to review maximum age
Pressure is building on lenders to review their maximum age limits
after two firms this week loosened their lending into retirement
FOS rulings tell lenders to extend interest-only terms
The Financial Ombudsman Service has told mortgage lenders in at
least two cases to extend interest-only terms indefinitely for
Chancellor says base rate should increase this
The chancellor has warned the base rate is likely to increase this
year but added it would be "wholly inappropriate" for him to
pressure the Bank of England's governor Mark Carney.
Product developments and innovation
Leeds to launch help to buy lonson range
Leeds Building Society has pledged to launch a range of Help to
Buy London mortgages when the Government scheme goes live next
Kensington announces rebrand
Specialist mortgage lender Kensington Group is to rebrand as
Northview Group in an effort to bring together its offerings and
offer a real alternative to high street lenders, the group's chief
executive Amany Attia has announced.
Borrowers increasing taking out fixed
The proportion of loans taken out at fixed rates is
increasing as borrowers look to lock in before base rates rise.
Figures published jointly by the Bank of England and the FCA today
show 80.7 per cent of gross advances in Q3 were fixed rates. This
is up from 78.9 per cent in the previous quarter.
Remortgage applications up 98% over six
The remortgage market has remained "extremely strong", according
to figures from Accord, which showed the number of borrowers
renewing their mortgage doubled year-on-year in the six months to
Number of first-time buyers remains
The number of first-time buyers is estimated to have totalled
310,000 in 2015, according to the annual Halifax First-Time Buyer
Tax changes will force one in 10 landlords to
The recent tax measures announced by the government in a bid to
dampen the buy-to-let market will cause one out of every 10
landlords to sell up, according to new research from the Council of
Sally Laker: it's time for lifestyle
It appears that 60 is the new 50 and 50 is the new 40. In fact,
there is an increasing population redefining non-retirement because
of their aspirations.
Mortgage market faces make or break 2016
L&G-Lending figures have been gently improving on the back of
growing nationwide demand for housing, according to Legal &
General Mortgage Club's director, but continued increases in house
prices are threatening to strangle the market by making
homeownership less affordable.