Mortgage market update for April 2016
news and drivers
House price growth in england surges
The latest government figures show that while house price
growth continues to soar in England, the rate in the rest of the UK
has slowed dramatically.
Borrowing up by a third as buyers rush to beat stamp
Mortgage borrowing has shot up by 33% in the year to February as
investors look to buy a property before the buy-to-let stamp duty
changes come into effect in April, new industry figures show.
Landlords believe the future of buy-to-let is
Over half the UK's buy-to-let landlords (52%) expect the stamp
duty and buy-to-let mortgage tax relief change to have no real
impact on them, new research shows.
House prices in the south now double those in the
The average house price in the UK is more than £200,000 for the
first time, but properties in the North are now less than half
those in the South, new figures show.
Regulation and legislation
Buyers still at risk of being caught out by stamp duty
Ahead of the new stamp duty 3% surcharge coming into effect on
Friday 1 April, Sean Randall, head of stamp taxes at KPMG UK, has
some last minute warnings for buyers who might be caught out.
Bank of England cracks down on buy-to-let
The Bank of England has unveiled new plans to clamp down on
buy-to-let mortgage lending over concerns that the market could
overheat. It proposes that when assessing whether borrows can
afford to pay, lenders should take account of likely future
interest rate increases over a minimum period of five years.
PRA boss warns housing crash would hit retirement
PRA chief executive and incoming FCA boss Andrew Bailey has warned
savers investing in property to fund their retirement could be at
risk if house prices slump.
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Product developments and innovation
Lloyds Banking Group launches mortgage video advice
The service from the banks enables customers to speak with a
mortgage advisor 'face to face' from the comfort of their own home
via video link on a laptop, desktop, or tablet computer.
TSB remortgage deals for small deposit
TSB has launched a new range of remortgage products available to
homeowners with small deposits, while cutting rates across
Virgin Money updates residential and buy-to-let
Virgin Money has reduced rates on selected products across its
core residential and buy-to-let mortgage ranges.
Paragon steps up buy-to-let offers with new product
Buy-to-let specialist lender Paragon Mortgages has launched its
first ever range of 'stepped' loans alongside its revamped product
range for individual landlords and limited companies.
Investec merges mortgage proposition for
Investec Private Banking is consolidating its Professional and
£Million Plus+ mortgages into the new Investec Private Banking
Mortgage, launched with a range of three and five-year fixed
Homeowners hit by higher mortgage payments when
introductory period ends
A third of homeowners have been hit with higher mortgage
repayments when they moved onto their lender's standard variable
rate, new figures show.
Fears future generations will never have a permanent
As house prices continue to soar, a new study has revealed that
three-quarters of people in Britain fear it will be impossible for
future generations to have a home of their own.
Bring advice into the 21st century
Consumers have come to expect quick and efficient service so
brokers who ignore technology don't stand a chance.