Mortgage market update for May 2017
MACRO NEWS AND
Supply of available houses hits record low for
Estate agents reported an average of just 39 houses on their books
in March, down from 44 in February - the lowest figure since
records began in September 2002, according to NAEA Propertymark
(National Association of Estate Agents).
Iress and Mortgage Brain deny ditching desktop
Leading providers of mortgage-sourcing software have denied they
are scrapping desktop versions of their products and moving to
wholly cloud-based systems.
House prices in regional cities hit 12-year
House price growth has reached 12-year highs in Manchester,
Birmingham and Newcastle as demand continues to climb outside the
south of England. Manchester has held on to the top spot in the
latest Hometrack UK Cities house price index with an annual growth
rate of 8.8 per cent, while Birmingham has surged into second place
with year-on-year growth of 8 per cent.
Only tough choices ahead on housing, says IFS
Politicians need to make difficult choices to tackle the housing
crisis and other factors holding back social mobility, according to
the director of the Institute for Fiscal Studies (IFS).
Mortgage lending shows stamp duty surge falling
Gross mortgage lending dropped by almost 20 per cent year-on-year
in March, according to the latest estimate from the Council of
Mortgage Lenders (CML).
Percentage-based fees now buy-to-let
Some 44 per cent of all buy to let mortgage products carried a
percentage-based fee in the first quarter of 2017, overtaking flat
fees (41 per cent) for the first time in four years, according to
the latest Buy to Let Mortgage Costs Index from Mortgages for
FCA to investigate interest-only
The FCA is to investigate lenders with interest-only mortgage
books to make sure customers are being treated fairly.
Equity release body wants government to push 'safe'
The Equity Release Council said the government should establish a
dedicated policy team committed to promoting equity release as a
safe product that should be on all homeowners' retirement planning
checklist as they approach later life.
Mortgage compensation owed to hundreds of
Lenders have been told to compensate a total of around 750,000
customers who may have been unfairly charged on their mortgage
MP backs keeping stamp duty under review
The communities secretary has said it is sensible to keep the
stamp duty rate under review amid concerns it could be contributing
to housing supply problems.
PRODUCT DEVELOPMENTS AND
Scottish Widows launches lowest-ever remortgage
Scottish Widows has cut rates on its flexible remortgage products
to as low as 1.19 per cent, with all products featuring the option
Vida Homeloans adds free legals for
Vida Homeloans is now offering free legals for residential
remortgages and has increased the maximum loan-to-value (LTVs)
available on certain products.
Accord revamps buy-to-let rental calculation
Accord has altered its rental calculation requirements in a bid to
ease the burden on struggling buy-to-let (BTL) landlords. The
lender will now take into consideration whether a property is a
freehold or leasehold and differentiate where a landlord is looking
to remortgage their existing property where no additional capital
raising is required.
Leeds launches fixed rate buy-to-let deal
Leeds Building Society has launched a five-year fixed rate
buy-to-let mortgage at a rate of 3.10 per cent. The deal comes with
a £199 fee and also has a free valuation while fees assisted legal
services are available for standard remortgages.
Nationwide cuts rates to historic lows
Nationwide Building Society is cutting rates on some two- and
five-year fixed and two-year tracker rate mortgage products by up
to 0.1 per cent. The 75 per cent loan-to-value two-year fixed rate
product now starts at 1.34 per cent with a £999 fee and 1.74 per
cent with no fee.
Paragon to pay proc fee on switch products
Paragon Mortgages is to pay procuration fees of 0.25 per cent
across its full range of switch products. The specialist buy-to-let
lender said the fee is "in recognition of the work intermediaries
do to deliver good outcomes for existing buy-to-let
Santander launches new BTL range and cuts
Santander has launched a new range of buy-to-let mortgages and cut
rates by up to 0.3 per cent on existing fixed-rate products.
Confidence in housing market is stable
Confidence in the housing market has now stabilised following a
record decline after the European Union referendum, according to a
survey by Halifax. The lender revealed nearly six out of 10 (58 per
cent) people expect the average property price to increase in the
next 12 months, compared with just one out of 10 (14 per cent) who
expect prices to fall.
Will the latest FCA review hit interest-only
The FCA launched its third review into the sector in just five
years last week. It unveiled the latest thematic review in its
2017/18 business plan.