Mortgage market update for March 2016
Macro news and drivers
Think-tank calls for stamp duty reduction on energy
A think-tank has called for a reduction in stamp duty along with
improved mortgage affordability tests to help encourage more energy
Uk house price growth accelerates
Annual house price growth accelerated in February as investors
snapped up properties ahead of the stamp duty hike in April.
According to Nationwide, average house prices were £196,930 last
month, up 4.8% from the same time last year.
Mortgage borrowing surges 38%
According to the British Bankers' Association, gross mortgage
borrowing was £13.6 billion in January, a 38% jump from the same
month last year.
Bank of Scotland tops FOS mortgage complaints
Bank of Scotland was the most complained-about mortgage firm in
the second half of 2015, according to the Financial Ombudsman
Regulation and legislation
FCA investigating product
access for older borrowers
The FCA is seeking to find out whether there are any barriers
stopping older people from accessing financial services products -
How would a Brexit affect the mortgage
A Brexit from the European Union is unlikely to hit the UK
mortgage market hard, according to economists and trade bodies. A
vote on whether the UK stays in the EU will be held on 23 June,
Prime Minister David Cameron announced last weekend.
Brokers at just 3 major networks can call themselves
Swathes of brokers will be unable to describe themselves as
'independent' from next month as major networks look to stop their
intermediaries from advising on second charge loans.
Product developments and innovation
Virgin tweaks interest-only criteria
Virgin Money has revamped its interest-only criteria. In a note to
brokers, the lender said it had reduced its minimum income
requirement from £100,000 to £50,000. This is based on total gross
income, including 100 per cent of bonuses and overtime.
Kent reliance loosens its self-employed
Kent Reliance has loosened its criteria for 'professional'
self-employed borrowers by accepting those who have been trading
for just 12 months.
Accord mortgages offers range of five-year
Accord Mortgages has launched a new range of five-year fixed rate
residential loans for borrowers with a 25 per cent deposit or
Natwest to begin instructing valuer on Day
NatWest Intermediary Solutions is looking to speed up its mortgage
process by instructing the valuer as soon as it receives the
Halifax makes remortgage cashback offer
Halifax has offered customers looking to remortgage direct with
the bank a £250 cashback on completion of their mortgage.
Average London worker needs a 266% pay rise to buy a
According to the National Housing Federation's Home Truths report,
the average London home now costs £526,000 - 16 times the average
Londoner's salary of £33,000 a year.
Tenants have paid over £40,000 in rent since
The average UK tenant has spent on average over £40,000 on rent in
the last five years, the equivalent of paying a 20% deposit on a
first-time buyer home, according to housing charity Shelter.
Average homebuyer has to wait three years to
According to Gocompare.com Mortgages, high property prices in the
area they want to buy (22%), getting enough money together for a
deposit (18%) and the associated costs of buying a property and
moving (11%) are the biggest obstacles to their plans.
Just one in five think mortgage rates will
Data published by conveyancer LMS showed the proportion of
remortgagers who believe interest rates will rise has decreased by
three percentage points from 25% in December 2015 to 22 per cent in
Quarterly lender survey: has anyone found the right mix
of rates and service?
In Mortgage Strategy's first quarterly lender survey of 2016, has
anybody achieved the perfect combination of good rates and
excellent service that is the key to all brokers' hearts?