Mortgage market update for June 2017
MACRO NEWS AND DRIVERS
Sharp slowdown in city house price growth
According to the latest Hometrack UK Cities House Price Index,
city house price growth dropped to 5.3% in April, a significant
slowdown from the 8.7% registered a year ago.
Mortgage lending falls 11% as movers struggle to find
Mortgage lending fell 11% last month, as the chronic undersupply
of properties continues to dampen home mover activity. The CML said
that monthly mortgage lending fell 11% to £18.4 billion in April,
slightly up on the £17.7 billion a year ago.
Home buyer activity in london plummets
According to the Council of Mortgage Lenders, homebuyers took out
16,700 loans in the first three months, down 5% compared to the
previous quarter and 19% on the first quarter of 2016.
Building societies approve one in three
According to the Building Societies Association, 112,287 new
mortgage loans were approved, up 2% from the same period last year.
However, despite the rise in mortgage approvals, gross lending by
the sector was down 15% compared to last year when the rush to beat
the 3% stamp duty increase distorted the market.
Flat prices soar by £85,000 since 2009
The average price of a flat in the UK has risen by 53% in the past
seven years from £159,292 to £243,936. According to the latest
research from Halifax, terraced homes have recorded the next
largest increase in average prices with a rise of 43% over the past
seven years, and detached homes the smallest rise (19%).
Only one in five people trust robo-advice
Just 21 per cent of people would trust a robot to give them
mortgage advice, despite the increasing role of artificial
intelligence (AI) in people's everyday lives, according to a HSBC
REGULATION AND LEGISLATION
Landlords wake up to buy-to-let tax relief
Landlords are "finally waking up" to the fact they could be pushed
into a higher tax bracket as a result of April's buy-to-let tax
relief changes, according to the National Landlords
Election 2017: what the manifestos have to say on
Here we take a look at the pledges made by the major political
parties in their manifestos on their plans for housing.
Government urged to support lending to SME
New research has revealed that the majority of mortgage lenders
and brokers believe that greater government support for lending to
small and medium-sized housebuilders is needed to help solve the UK
PRODUCT DEVELOPMENTS AND INNOVATION
Yorkshire unveils 95% LTV mortgage at
Yorkshire Building Society has unveiled a two-year fixed rate
mortgage at 3.25% for borrowers with a 5% deposit. The 95%
loan-to-value (LTV) mortgage is includes a £995 product fee plus
£250 cashback on completion.
Accord offers remortgaging landlords £250
Landlords who opt for 65% and 75% loan-to-value (LTV) fixed rate
mortgages from the intermediary-only lender will receive up to £550
cashback once their mortgage completes.
Leeds BS launches help to buy mortgage at
Leeds Building Society has launched a new two-year fixed rate Help
to Buy mortgage at 1.50% for borrowers with a 25% deposit. The deal
is available for purchase or remortgage in England and Wales and
comes with a free valuation and a £999 fee.
Just mortgages launches broker training
The group is to run a series of four-week courses introducing
people to the basics of mortgages and protection, and taking them
through to complete their CeMap One qualification.
Ipswich launches five-year fixed rate
The building society is offering a residential five-year fixed
rate for both purchases and remortgages at 2.79 per cent up to 90
per cent loan-to-value (LTV), with a completion fee of £800 and an
application fee of £199.
Mortgage trust launches limited edition buy-to-let
Mortgage Trust has launched a fixed rate buy-to-let product for
individual landlords seeking finance for single, self-contained
units. The five-year fixed rate deal provides finance at 3.45 per
cent, with a maximum loan size of £500,000 at 75 per cent
loan-to-value (LTV) and £1m at 70 per cent LTV.
Desperate first-time buyers are moving to crime-ridden
New research has revealed that many homeowners are regretting
their decision to get on the property ladder because of the
sacrifices they have to make. According to comparison website
money.co.uk, one in 10 first-time buyers regret their decision to
get on the property ladder because they can only afford to live in
crime-ridden areas or have to move away from their families as the
housing market is so expensive.
Sellers favour buyers that can purchase quickly ahead of
New research shows nine in 10 (89%) house sellers favour buyers
that are able to complete a purchase quickly, even if others are
making bigger offers.
Millions of households struggling to pay their mortgage
could be on the wrong deal
According to L&C Mortgages, 1.4 million UK households have
difficulty paying their mortgage, while 2.6 million people think
their monthly payments are too high.
One in five landlords to raise rents
Online letting agent Upad.co.uk has revealed landlords will
experience an average 13 per cent increase in their taxable profit
from 2017 to 2018 to 2018 to 2019, leading many to pass on the
extra financial burden to tenants.
To interest-only or not to interest-only
Michelle Niziol, director of IMS Independent Mortgage Solutions,
explains all about interest-only mortgages. They are more difficult
to get these days and are not suitable for everyone as you must be
able to prove how you will pay off the capital loan at the end of
the mortgage term.