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Mortgage market review - September 2016

Mortgage market update for September 2016

MACRO NEWS AND DRIVERS

Advisers still grappling with mortgage prisoners problem
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.
http://www.moneymarketing.co.uk/brokers-still-grappling-mortgage-prisoners-problem/  

Lending confidence remains unchanged post-Brexit
Despite uncertainty around the property market post-Brexit, investor confidence in the lending environment remains unchanged, according to Shawbrook Bank.
http://www.propertywire.com/news/europe/uk-buy-let-survey-2016081612270.html     

Year of two halves for mortgage market as prices slow
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.
http://www.independent.co.uk/news/business/news/brexit-house-prices-drop-latest-summer-property-market-predictions-rightmove-a7187706.html   

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.
http://www.whatmortgage.co.uk/news/third-homes-sale-reduced-price-since-april/          

REGULATION AND LEGISLATION

Help to buy ISA under fire over govt deposit clause
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.
http://www.moneymarketing.co.uk/help-buy-isa-fire-govt-deposit-clause/   

Fresh call for protection to be part of mortgage advice
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.
http://www.ftadviser.com/2016/08/11/insurance/health-and-protection/fresh-call-for-protection-to-be-part-of-mortgage-advice-44hJxcx6uJ9H4DwMhvdZEM/article.html         

Prudential loses mortgage endowment battle
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.
http://www.ftadviser.com/2016/08/15/mortgages/mortgage-products/prudential-loses-mortgage-endowment-battle-hmidWCgNRsJTrHS3HUWiFM/article.html  

PRODUCT DEVELOPMENTS AND INNOVATION

Precise launches limited company buy-to-let exclusives
Precise Mortgages has teamed up with 3mc, Sesame and PMS to launch some exclusive limited company buy-to-let products.
http://www.ftadviser.com/2016/08/17/mortgages/mortgage-products/precise-launches-limited-company-buy-to-let-exclusives-KE2iErqdFm7BDXb4cEIo6L/article.html   

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.
https://www.mortgagestrategy.co.uk/coventry-launches-seven-year-fixed-range/               

Accord launches five-year remortgage deals
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 five-year fix.
http://www.mortgageintroducer.com/accord-launches-five-year-fixed-remortgage-deal/   

Accord launches ERC free tracker mortgages
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.
http://www.propertyreporter.co.uk/finance/accord-launches-new-tracker-range.html           

CONSUMER TRENDS

House hunter levels drop to three year low
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.
http://www.naea.co.uk/info-guides/housing-market-reports.aspx   

London first-time buyers terrified by mortgage process
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" them.
http://www.bestadvice.co.uk/london-ftbs-claim-mortgage-terror/   

Overpaying your mortgage by £59 each month could save you thousands
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.
http://www.whatmortgage.co.uk/news/overpaying-mortgage-59-month-save-thousands-reduce-term/    

EXPERTS CORNER

Popularity of equity release will continue
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".
http://www.ftadviser.com/2016/08/15/opinion/blogs/popularity-of-equity-release-will-continue-awMwY5L4WjmvXN7975y2sL/article.html

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