Mortgage market update for December 2016, Part
Macro news and
Surveyors warn housing market faces slow start to
The number of prospective buyers in the UK housing market has
increased for the third consecutive month, according to the Rics
Residential Market Survey. The survey of chartered surveyors showed
13 per cent reported an increase in new buyer enquiries rather than
House prices bump up in November
House prices nudged up slightly in November after flat-lining
during the previous month, according to figures from Nationwide.
The building society's monthly annual house price index showed UK
house prices had bumped up 0.1 per cent in November, after making
no movement in October.
London house price growth beaten by commuter
House price growth in 10 commuter towns has outstripped the
capital over the past year, according to buying agents Garrington
Property Finders. While Land Registry data shows the average price
of London property rose by 11 percent in the 12 months to
September, house price growth in Brentwood and Canterbury was 16
Bank of England downplays low interest rate savings
Bank of England monetary policy committee member Gertjan Vlieghe
has hit back at criticism that low interest rates are hitting
savers because most UK wealth is held in property rather than bank
Hammond sets his housing policy
Chancellor Phillip Hammond touched lightly on housing and
housebuilders, without throwing a crumb of comfort in the form of
stamp duty reductions, in his Autumn Statement. Some viewed the
Autumn Statement was a "missed opportunity" to help
Lenders 'breaking MMR rules' over non-advised
Lenders' product transfer sales tactics break Mortgage Market
Review rules around non-advised sales and should be reviewed by the
FCA, according to industry experts.
Product developments and
HSBC scraps its 0.99% two-year fixed rate
HSBC has scrapped its 0.99% two-year fixed interest rate after six
months, suggesting that the recent period of record low fees could
be coming to an end.
Coventry offers lowest ever fixed rate
Coventry for Intermediaries has launched is lowest ever two-year
fixed rate mortgage at 1.29%. For a loan-to-value (LTV) of 50 per
cent it will offer a 1.29 per cent rate for residential mortgages
for two years with a £999 fee.
Accord scraps processing fee for landlords
Accord Buy-to-Let has reduced rates on fixed rate deals and
scrapped the processing fee on all applications for landlords.
Highlights include a two-year fix, which is now available at 1.59
per cent to 60 per cent loan-to-value (LTV) for remortgaging
landlords and those looking to expand their portfolio.
Clydesdale increases LTV for larger mortgage
Clydesdale has raised the loan-to-value for capital and interest
mortgages to 80 per cent for a maximum loan size of £1.5m,
regardless of geography. It is also now offering loans which
contain an interest-only element beyond London to other areas of
the south east.
Accord launches online hub for mortgage
Accord has launched an interactive website to help mortgage
brokers explain new products to clients. The online toolkit from
the intermediary-only lender, part of the Yorkshire Building
Society, offers mortgage calculators, a guide to the application
process and simple explanations of the types of mortgages available
plus the benefits of different products on the market.
Leeds shakes up buy-to-let lending criteria
Leeds Building Society has announced new criteria following the
Prudential Regulation Authority's changes to underwriting standards
for buy-to-let mortgages. Chief commercial officer at the firm,
Richard Fearon, has described Leeds Building Society's criteria as
bringing a "unique proposition" to the buy-to-let market.
Newcastle enters Help to Buy market
Newcastle Intermediaries has entered the Help to Buy new build
market. The lender's deals will include both the standard 20 per
cent equity loan and 40 per cent in London (Help to Buy
Britain's wealthiest denied credit
Britain's high-net-worth individuals are routinely being turned
down for credit cards, loans and mortgages, according to research.
A million of the UK's richest people have been unable to secure
overdrafts and loans, despite having personal assets worth more
than the loan they seek, according to a survey by Market Financial
Solutions, a London-based bridging lending provider.
Londoners have to fork out 14 times their salary to buy a
The disparity between average earnings and house prices is
reaching record levels in certain parts of the country.
Property prospects post-Brexit
Following the referendum, buyers and sellers paused to see whether
job security and/or access to competitively priced mortgages were
likely to change. There is no doubt most are taking longer to
commit and negotiating harder so some property prices have
Autumn Statement: what impact will the government's
affordable homes push have?
While the Chancellor's Autumn Statement has been welcomed by many
in the property industry, question marks remain as to whether it
will actually have much impact on home ownership.