Mortgage market update for September 2016
MACRO NEWS AND DRIVERS
Advisers still grappling with mortgage prisoners
Mortgage brokers are adamant there continues to be a problem with
mortgage prisoners who find themselves unable to re-mortgage
despite claims by the FCA to the contrary.
Lending confidence remains unchanged
Despite uncertainty around the property market post-Brexit,
investor confidence in the lending environment remains unchanged,
according to Shawbrook Bank.
Year of two halves for mortgage market as prices
The price of property coming to market in the last four weeks is
1.2 per cent (-£3,602) lower than the previous month, according to
Rightmove's latest index.
A third of all homes up for sale have been reduced in
price since April
According to Zoopla, 32.64% of all listings were discounted in
July, taking off £25,257 from the average property across the UK.
Sellers are most likely to cut prices in the North of England, with
almost half of all properties listed in Huddersfield, Wigan and St
Helens, Merseyside seeing price slashed.
REGULATION AND LEGISLATION
Help to buy ISA under fire over govt deposit
It has emerged first-time buyers cannot use the Help to Buy Isa to
boost their deposit, after the Government introduced a clause
limiting the bonus until after completion.
Fresh call for protection to be part of mortgage
As the link between mortgage brokers and protection sales shows
signs of weakening, calls for cover to be a mandatory part of the
conversation have come to the fore again.
Prudential loses mortgage endowment
Prudential has been told to compensate a couple it sold a mortgage
endowment to back in 1997. The Financial Ombudsman Service ruled
the insurer must pay up compensation, given the ages of the clients
at the time it sold the policy, plus deteriorating health and the
sale of a business.
PRODUCT DEVELOPMENTS AND INNOVATION
Precise launches limited company buy-to-let
Precise Mortgages has teamed up with 3mc, Sesame and PMS to
launch some exclusive limited company buy-to-let
Coventry gets a seven-year fix
Coventry for Intermediaries has launched a new range of seven-year
fixed rate residential mortgages. Available from today (16 August),
one deal is priced at 1.99 per cent at 50 per cent loan-to-value,
with a £999 arrangement fee.
Accord launches five-year remortgage
Available at 75 per cent loan-to-value is a 2.24 per cent
five-year fix, while at 80 per cent LTV is a 2.44 per cent
five-year fix, and at 85 per cent LTV there is a 2.60 per cent
Accord launches ERC free tracker
Accord Buy To Let is launching a range of new tracker mortgages
with no early repayment changes (ERCs). These are designed to
provide landlords with flexibility to exit their mortgage early
without the usual fees, should their circumstances change over the
next two years.
House hunter levels drop to three year
In July, the number of house hunters registered per member branch
dropped to an average of 298, from 330 last month, according to the
National Association of Estate Agents.
London first-time buyers terrified by mortgage
Londoners are the most confused and stressed about mortgages in
the UK, with 65 per cent of first-time buyers in the capital
claiming the prospect of applying for a mortgage "terrifies"
Overpaying your mortgage by £59 each month could save
UK mortgage holders could knock years off their mortgage term and
save thousands by just paying a little over the odds every month,
new research shows.
Popularity of equity release will
Towards the end of July, research was published suggesting almost
half (46 per cent) of over 45s see property as "a key part of
retirement incoming planning".