Mortgage market update for January 2018 including updates on regulation and legislation, product developments and consumer trends.
MACRO NEWS AND DRIVERS
Stamp duty changes have limited impact on market
The changes in stamp duty introduced in November's Budget have had a limited impact on the housing market, according to the Royal Institution of Chartered Surveyors (Rics).
More homeowners step up the housing ladder
The number of people taking the next step on the housing ladder has increased, thanks to a combination of low mortgage rates, high housing equity and high employment.
UK housing market set for a bumpy ride
Savills forecasts that house prices will grow by just 1 per cent in 2018 (see chart), as political and economic uncertainty continues to boost buyer caution. There’s then scope for growth to increase to 2.5 per cent in 2019, while at 5 per cent growth, the strongest year of the forecast is 2020.
East Midlands and Wales see fastest house price growth
The East Midlands and Wales have outperformed all other UK regions in terms of house price growth in 2017, with property prices picking up by 8 per cent in the year, according to Halifax.
REGULATION AND LEGISLATION
Treasury committee backs radical housing plans
The influential Treasury select committee has unanimously agreed a report which favours scrapping a borrowing cap to help the government meet its target of building 300,000 new homes a year.
Help-To-Buy ISA gets buyers moving three years early
The Help-to-Buy ISA is helping first-time buyers on to the ladder three years early, according to government statistics.
PRODUCT DEVELOPMENTS AND INNOVATION
Newcastle unveils latest self-employed mortgage
Newcastle Intermediaries has launched a two-year fixed rate self-employed mortgage product at 2.2 per cent. The home loan is available at a maximum 60 per cent loan-to-value (LTV), has no reservation or completion fees, a free standard valuation and increased overpayment facilities of 10 per cent of the balance a year.
Santander replaces SVR with follow-on rate
Santander has launched a new follow-on rate for people coming to the end of their mortgages, tracking 3.25 per cent above the base rate. The rate replaces the current standard variable rate for customers coming to the end of their mortgages, which is 4.74 per cent.
Leeds Building Society offer Help-To-Buy cashback deals
Leeds Building Society (LBS) has added two mortgages with £1,000 cashback to its Help to Buy (HTB) range. The Society has launched a two-year fixed-rate mortgage at 2.04 per cent; and a five-year fixed-rate mortgage at 2.34 per cent.
BM Solutions launches portfolio Buy-To-Let calculator
New tool has launched seeking to help brokers calculate loan-to-values (LTV) and rental cover ratios for buy-to-let portfolio lending.
Newbury unveils shared ownership mortgage - Newbury Building Society has improved its shared ownership mortgage by launching a new variable rate product at 2.99 per cent. The product is available for purchases up to 95 per cent loan-to-value.
One in five Buy-To-Let landlords plan to sell up
The ongoing changes to the tax treatment of buy-to-let investments and ongoing economic uncertainty mean 20 per cent of UK landlords are considering exiting the market, according to the National Landlords Association.
Limited Company Buy-To-Lets on the rise
Buy-to-let mortgages within limited company structures are mainly used for purchasing, not refinancing, new figures show. The figures differ from those of individual landlords and from residential property figures, where refinancing property has long been the preferred reason for borrowing.
Sellers struggling to shift property swiftly
The average price of a property coming on to the market in January is up by nearly £2,000 compared with December, but sales are down by 5.5 per cent on the same period a year ago. Rightmove reported the average time to sell a property has jumped to 67 days compared to 55 days last summer.
Which sort of client benefits most from a long-term fix?
There are a range of circumstances that vary from client to client when it comes to mortgages but there are some people for whom a 10-year fix might be appropriate.