Mortgage market update for February 2016
Macro news and trends
Flood checks set to be standard for property
Environmental searches to identify risk of flooding when
purchasing a house are set to become standard, reveals SearchFlow,
conveyancing search provider.
Help to buy: ISAs opened every 30
A quarter of a million first time buyers, more than half of whom
are aged 30 and under, have opened a Help to Buy: ISA since the
government's landmark scheme launched on 1 December 2015. This is
equivalent to 1 person opening an account every 30 seconds, or over
3,000 a day.
House prices more than 500,000 in a majority of London
Average property prices have broken the £500,000 barrier across
more than half of the postcode districts in London, new figures
Average UK house prices rise 9.7% in
House prices rose 9.7% in the year to January, up from December's
figure of 9.5%, new figures from Halifax have revealed. The annual
rate of growth has between 8% and 10% since the start of
Regulation and legislation
Labour launches review to combat house ownership
The Labour Party has announced a review of the supply of homes to
be headed by Peter Redfern, the chief executive of builder Taylor
CML urges the Government to review stamp duty
The trade body for the mortgage industry has urged the government
to reform it plans to increase stamp duty by 3% on second
properties to reduce the potentially negative impacts on the
FCA warns on self-cert mortgages.
The FCA is warning consumers of the risks of self-certification
mortgages after the launch of a new lender earlier this month. The
lender, selfcert.co.uk, is based in Prague and is passporting into
the UK using the Electronic Commerce Directive.
Product developments and innovation
Yorkshire Building Society offers £500 cashback to
Yorkshire Building Society is offering selected first-time buyers
an extra £500 cashback when they complete on a mortgage with the
Society, on top of any other offers they are entitled to.
Leeds reveals details of help to buy London
The range, which launches on 1 February, contains a 1.79 per cent
two-year fixed rate with a £799 fee and a 2.45 per cent five-year
fixed rate with a £199 fee. Both come with a free valuation.
Keystone simplifies classic range and slashes
Keystone Buy to Let Mortgages has simplified its Classic range and
has cut rates by up to 50 basis points.
New lender launches into mortgage market.
New Street Mortgages has launched into the UK market as a new
mass-market lending brand under the Northview Group.
Fleet Mortgages changes buy-to-let
Fleet Mortgages has made criteria changes across its new build and
recent conversions lending, and for multiple occupation properties
Santander to introduce two-tiered B2L affordability
Santander is introducing a new two-tier buy-to-let affordability
calculation as the Government's tax shake up is expected to
increase costs for landlords.
Deposits still greatest barrier to buying a
The latest quarterly Halifax Housing Market Confidence Tracker
shows that in the final quarter of 2015, 58% of people chose this
as the biggest barrier to buying a property, up one point from the
Drawdown growth drives equity release market to new
Those aged 55 plus unlocked a record amount of housing wealth via
drawdown lifetime mortgages in the final quarter of 2015, pushing
annual equity release lending to a new high of £1.61bn, according
to the Equity Release Counl.
First-time buyer activity grew in 2015.
The number of home buyers taking their first step onto the
property ladder dropped by 1,300 between November and December,
according to a new report.
Stamp duty surcharge - your questions
Stephen Barratt, private client tax director at accountants and
business advisers James Cowper Kreston, answers your questions on
the forthcoming stamp duty changes.