Mortgage market update for August 2017
MACRO NEWS AND DRIVERS
Surge in remortgage activity ahead of potential rate
One out of every three property valuations came from owner
occupiers or landlords remortgaging in June, new research shows.
According to the latest research from Connells Survey &
Valuation, growth in remortgage valuations is seven percentage
points above the five-year average for June.
Property transactions dip to lowest level in eight
According to figures from HM Revenue and Customs, the number of
residential property transactions fell by 3.3% to 96,910 between
May and June - the lowest since October 2016.
City house prices set to surge by up to 7% despite
City house price growth is set to shake off Brexit uncertainty,
rising by reach 6-7% over the course of the year. Hometrack said it
had raised its 4% prediction made in December due to the continued
growth in large regional cities outside London and the South
Mortgage lending goes up but there could be trouble
UK Finance has warned that a further deterioration in the economy
is likely to "dampen" first-time buyer and remortgage activity. The
new trade association, which has replaced the Council of Mortgage
Lenders, said that gross mortgage lending is up 3% on last year at
Help To Buy is pushing up prices for first-time buyers in
The London housing market is being badly distorted by the £600,000
upper threshold of the Help To Buy scheme which is pushing prices
up for first-time buyers, new research has revealed.
Small deposit borrowers could see mortgage availability
Borrowers looking to take out a mortgage with a small deposit
could find it more difficult to get a loan in the coming months, a
new survey from the Bank of England suggests.
House price growth slows again but market remains
House prices went up 4.7% in the year to May, down from April's
figure of 5.3%, new figures show. According to the latest data from
the Office for National Statistics, house prices rose £1,000 in
May, taking the average value of a property in the UK up to
Mortgage costs come down in second quarter
New data has revealed that the majority of mainstream mortgages
have come down in cost over the past three months. According to
Mortgage Brain, the cost of a five-year fixed mortgage for
borrowers with a 30% deposit is 2% lower than it was at the
beginning of April.
New proposals to make mortgage switching easier could
save borrowers £15 billion
Online mortgage broker Trussle is proposing a new set of industry
standards to make it easier for borrowers to switch their mortgage.
Its white paper identifies several shortcomings in the mortgage
market which are exacerbating this inertia, some of which are
expected to be addressed in the FCA's soon-to-be-published Mortgage
PRODUCT DEVELOPMENTS AND INNOVATION
Teachers building society adds new options to its family
Teachers Building Society has added new options to its Family
Mortgage to help families support their relatives on the property
ladder. These options allow family members to gift a deposit to
loved ones who are struggling to save a deposit for a property and
can be used on mortgages up to 95% LTV.
Accord expands buy-to-let range to first-time
Accord's buy-to-let mortgage range is now available to those
buying a property to let for the first time. Accord's standard
buy-to-let lending criteria will apply to new landlords, including
a minimum requirement of a 25% deposit. Applicants must also own
their own residential home and pass credit checks.
Skipton unveils 0.99% mortgage
Skipton Building Society has unveiled its first fixed rate
mortgage below 1%, ramping up the competition between lenders. The
two-year fixed rate mortgage has an interest rate of 0.99%. It
comes with a fee of £1,995 and is available for borrowers with a
40% deposit or more.
Nationwide ditches free legals after
From today (13 July) the nation's biggest building society has
ditched free legals after the service came under fire from a broker
back in May who claimed their client may require compensation after
their fees-free remortgage through Nationwide was delayed by more
than a month, leaving them paying the standard variable rate for
longer than expected.
Metro bank cuts rates on fixes and
Metro Bank has cut rates across a range of its fixed rate and
tracker products by up to 0.2 percentage points.
Overseas landlords pull out of the uk as low price
growth and taxes bite
The proportion of overseas-based landlords in Great Britain hit a
record low in 2017, driven by low expectations of price growth and
tax changes. According to Countrywide, overseas landlords owned 5%
of all homes let in the UK in 2017, down from 12% in 2010.
First-time buyers are failing to budget for home buying
fees and costs
First-time buyers are failing to budget for the cost of buying
their first home, with the likes of surveys, valuations and legal
fees costing 73% more than anticipated, a new survey shows.
According to home builder Barratt Homes, over half of first-time
buyers are spending £4,955 on average on the fees and costs of
buying a home.
Affordability bigger barrier to home ownership than in
Affordability is a significantly bigger barrier to home ownership
now than the last time figures were compiled in the midst of the
financial crisis, a survey by the Department for Communities and
Local Government has found.
Is the softening housing market just
The mortgage market has had a turbulent 2017 so far and, at the
half-way mark, many think it may have to withstand further