Mortgage market update for July 2017
MACRO NEWS AND DRIVERS
Landlord confidence dips as tax burdens
According to Kent Reliance's Buy to Let Britain report, just 41%
of landlords are confident about the prospects for their portfolios
following the recent taxation and regulatory changes - a fall from
44% in the previous quarter.
CML revises buy-to-let growth forecast as tax
The Council of Mortgage Lenders has revised it buy-to-let growth
forecast downwards to reflect tax and prudential burdens in the
housing and mortgage markets.
May mortgage sales rocket by 25.4%
UK monthly mortgage sales increased by 25.4% in May to £17
billion, according to Equifax Touchstone. Buy-to-let figures jumped
26.1% to £2.7 billion, with residential up 25.2% (£2.88 billion) to
UK houses sales have fallen by a third in the last
According to Lloyds Bank, property sales across England fell 7% in
2016 to 848,857, with levels a third lower than those of the last
UK house prices have shot up £60,000 since interest
rates were cut in 2009
According to online estate agents HouseSimple.com, average UK
property prices have risen 41.2% over the past eight years since
interest rates came crashing down.
REGULATION AND LEGISLATION
Help to Buy has helped over one million
Over 285,000 homeowners have used one or more of the Help to Buy
schemes, while 960,000 people have opened a Help to Buy ISA.
Brexit fails to deter UK home buyers
According to estate agent haart, three out of four homeowners say
the vote to leave the EU has not influenced their decision to buy
or sell their property.
Government brings forward ban on letting agent
The government has announced plans to bring forward a ban on
unfair letting agent fees. The Draft Tenants' Fees Bill outlined in
the Queen's speech will ban letting agents from charging tenants
PFS and AMI call for fair mortgage
Regulation must be fair and levies on the mortgage industry must
be fair, a senior figure at the Personal Finance Society has
PRODUCT DEVELOPMENTS AND INNOVATION
Aldermore launches new website to boost broker
The site, intermediaries.aldermore.co.uk, allows brokers across
residential, buy-to-let, commercial mortgages and property
development finance to access all of the specialist lender's
offerings in one place.
Santander launches mortgage video service
Santander customers can now apply for a mortgage via an in-branch
video link that connects them to a UK-based adviser. The service,
which is available in 63 of the bank's branches, has been designed
to help as many customers as possible with their mortgage
Skipton offers a new range of interest-only
Skipton Building Society has introduced a range of interest-only
mortgages to help people on the property ladder. The new range
provides 60 per cent, 70 per cent and 80 per cent loan-to-value
products, which are available to purchase and remortgage
Keystone introduces online case tracking
Keystone Property Finance has launched MyKeystone, an online case
tracking facility for brokers using its classic range of buy-to-let
Metro bank drops fees for mortgage
Metro Bank has dropped product fees for existing residential
borrowers looking to switch rates or secure a further advance on
loans up to £2m.
Virgin money mortgage refresh includes broker
Virgin Money has unveiled a range of new residential and
buy-to-let mortgages - including a product exclusive to
intermediaries. The lender's product revamp means two-year fixed
rate deals for residential borrowers are now available at 1.28 per
cent up to 65 per cent LTV, 1.44 per cent up to 80 per cent LTV and
1.52 per cent up to 85 per cent LTV.
Second steppers also need help from the bank of Mum and
According to Lloyds Bank, almost a third (32%) of second steppers
think they will still rely on financial help from family and
friends to move up the property ladder.
Bank of Mum and Dad could fund nearly 450,000 onto the
property ladder in 2017
According to new research from Legal & General and economics
consultancy Cebr, using equity release to free up capital from the
family home could help as many as 442,900 individuals to buy a
house this year.
Bank of Mum and Dad risks inheritance tax gift
The Bank of Mum and Dad risks falling foul of rules on gifting and
inheritance tax, according to Key Retirement. Its study shows
almost half (47%) of parents and grandparents do not understand the
tax rules on gifting, and nearly three out of four (73%) say the
rules are very complicated.
First-time buyers that fail to haggle over
More than half of first-time buyers regret not negotiating the
price before buying their home, new research shows. In fact, some
first-time buyers are so desperate to get on the housing ladder
that one in five are prepared to fork out on average an additional
£7,758 to secure their chosen property.
How technology is reshaping the way you buy a
The UK property market has been relatively slow to adjust to the
digital age, but as Bob Dylan so aptly pointed out: "The times,
they are a-changin'." Stephen Little takes a look at some of the
companies trying to shake up the industry.