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Mortgage market review June 2017

Mortgage market update for June 2017


Sharp slowdown in city house price growth
According to the latest Hometrack UK Cities House Price Index, city house price growth dropped to 5.3% in April, a significant slowdown from the 8.7% registered a year ago.

Mortgage lending falls 11% as movers struggle to find homes
Mortgage lending fell 11% last month, as the chronic undersupply of properties continues to dampen home mover activity. The CML said that monthly mortgage lending fell 11% to £18.4 billion in April, slightly up on the £17.7 billion a year ago.

Home buyer activity in london plummets 19%
According to the Council of Mortgage Lenders, homebuyers took out 16,700 loans in the first three months, down 5% compared to the previous quarter and 19% on the first quarter of 2016.

Building societies approve one in three mortgages
According to the Building Societies Association, 112,287 new mortgage loans were approved, up 2% from the same period last year. However, despite the rise in mortgage approvals, gross lending by the sector was down 15% compared to last year when the rush to beat the 3% stamp duty increase distorted the market.

Flat prices soar by £85,000 since 2009
The average price of a flat in the UK has risen by 53% in the past seven years from £159,292 to £243,936. According to the latest research from Halifax, terraced homes have recorded the next largest increase in average prices with a rise of 43% over the past seven years, and detached homes the smallest rise (19%).

Only one in five people trust robo-advice
Just 21 per cent of people would trust a robot to give them mortgage advice, despite the increasing role of artificial intelligence (AI) in people's everyday lives, according to a HSBC report.


Landlords wake up to buy-to-let tax relief changes
Landlords are "finally waking up" to the fact they could be pushed into a higher tax bracket as a result of April's buy-to-let tax relief changes, according to the National Landlords Association.

Election 2017: what the manifestos have to say on housing policy
Here we take a look at the pledges made by the major political parties in their manifestos on their plans for housing.

Government urged to support lending to SME builders
New research has revealed that the majority of mortgage lenders and brokers believe that greater government support for lending to small and medium-sized housebuilders is needed to help solve the UK housing crisis.


Yorkshire unveils 95% LTV mortgage at 3.25%
Yorkshire Building Society has unveiled a two-year fixed rate mortgage at 3.25% for borrowers with a 5% deposit. The 95% loan-to-value (LTV) mortgage is includes a £995 product fee plus £250 cashback on completion.

Accord offers remortgaging landlords £250 cashback
Landlords who opt for 65% and 75% loan-to-value (LTV) fixed rate mortgages from the intermediary-only lender will receive up to £550 cashback once their mortgage completes.

Leeds BS launches help to buy mortgage at 1.50%
Leeds Building Society has launched a new two-year fixed rate Help to Buy mortgage at 1.50% for borrowers with a 25% deposit. The deal is available for purchase or remortgage in England and Wales and comes with a free valuation and a £999 fee.

Just mortgages launches broker training academy
The group is to run a series of four-week courses introducing people to the basics of mortgages and protection, and taking them through to complete their CeMap One qualification.

Ipswich launches five-year fixed rate range
The building society is offering a residential five-year fixed rate for both purchases and remortgages at 2.79 per cent up to 90 per cent loan-to-value (LTV), with a completion fee of £800 and an application fee of £199.

Mortgage trust launches limited edition buy-to-let fix
Mortgage Trust has launched a fixed rate buy-to-let product for individual landlords seeking finance for single, self-contained units. The five-year fixed rate deal provides finance at 3.45 per cent, with a maximum loan size of £500,000 at 75 per cent loan-to-value (LTV) and £1m at 70 per cent LTV.


Desperate first-time buyers are moving to crime-ridden areas
New research has revealed that many homeowners are regretting their decision to get on the property ladder because of the sacrifices they have to make. According to comparison website, one in 10 first-time buyers regret their decision to get on the property ladder because they can only afford to live in crime-ridden areas or have to move away from their families as the housing market is so expensive.

Sellers favour buyers that can purchase quickly ahead of big offers
New research shows nine in 10 (89%) house sellers favour buyers that are able to complete a purchase quickly, even if others are making bigger offers.

Millions of households struggling to pay their mortgage could be on the wrong deal
According to L&C Mortgages, 1.4 million UK households have difficulty paying their mortgage, while 2.6 million people think their monthly payments are too high.

One in five landlords to raise rents
Online letting agent has revealed landlords will experience an average 13 per cent increase in their taxable profit from 2017 to 2018 to 2018 to 2019, leading many to pass on the extra financial burden to tenants.


To interest-only or not to interest-only
Michelle Niziol, director of IMS Independent Mortgage Solutions, explains all about interest-only mortgages. They are more difficult to get these days and are not suitable for everyone as you must be able to prove how you will pay off the capital loan at the end of the mortgage term.

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