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Mortgage market review July 2018

Publication date:

17 July 2018

Last updated:

25 September 2018


Technical Connection

Mortgage market update for July 2018




Surge in interest for tracker mortgages following base rate hold - Experian’s credit search barometer shows that in May almost half (46.8 per cent) of mortgage searches were for details of tracker rates and deals.  This is significant increase on the 32.6 per cent of searches in April.

London rents rise for the first time in almost two years - Rents in London rose by 0.;10% in the 12 months to June 2018. the first annual rental increase for the capital in 18 months, Landbay's Rental Index has found.

Red tape is the biggest barrier to government target of 300,000 new homes a year - Bureaucracy, lack of cooperation and a dwindling SME builders market are the main blockades to reaching the government’s ambitious housing targets, panellists at an event held by BLP Insurance and the British Property Federation on 3 July 2018, concluded.

London bucks UK trend with surge in new homes for sale - As three-quarters of towns and cities across the UK saw a drop in new properties coming onto the market in June, new supply in London increased to reach a level not seen in more than three years, according to HouseSimple data.  

House prices are rising at the slowest pace for five years - but homes still cost £10,500 more than a year ago - House price inflation has fallen to its lowest level in five years, but buyers will still find that the average home costs almost £10,500 more than a year ago. The price of the average UK home rose 2 per cent in the year to June to a new record of £215,444, according to the Nationwide house price index.



New deals with housing associations will boost new home building in England - A first wave of strategic partnerships with housing associations have been agreed to boost the building of new affordable homes in England. The landmark deals with eight housing associations will see some 14,280 new homes built by March 2022, according to Homes England, the governmental body responsible for increasing the number of new homes being built, as part of a funding package worth just under £590 million.

Carney says rate rise is on the way - Interest rates in the UK may rise as soon as next month as Mark Carney said the economy has “bounced back” from the slowdown at the start of the year. The Bank of England's governor was speaking at an event in Newcastle, where he said the economic data over the past month has been “positive” and validates his previously held view that the weak first quarter GDP growth in the UK was largely the result of weather conditions.




Fleet Mortgages revamps entire product range - Buy-to-let and specialist lender Fleet Mortgages has revamped its entire product range, cutting rates on 12 out of its 13 products.

Skipton cuts rates on ‘refreshed’ BTL range - Skipton Building Society has cut its rates across its buy-to-let range, available for both purchase and remortgage deals.

Retirement Advantage reduces rates for older landlords – Retirement Advantage has made changes to its mortgage range tailored to older landlords. The retirement income provider has reduced interest rates and increased the loan-to-value (LTV) ratios on its Over 55 buy-to-let options range, which it launched last year.

Legal & General expands mortgage services - Legal & General Mortgage Club has partnered with InterBay Commercial in a move to broaden the choice available to its customers. Legal & General club members can access InterBay Commercial’s buy-to-let, houses in multiple occupation, commercial, semi-commercial and bridging products.

Mansfield offers new shared ownership deal - Mansfield Building Society has introduced a shared ownership mortgage with no early repayment charges. The society is offering its cheapest variable rate shared ownership mortgage with the opportunity to switch to a fixed rate at any time, in a bid to offer borrowers "freedom and flexibility".



Report uncovers gloomy outlook from prospective homeowners - A report published today by the Building Societies Association (BSA) has revealed 70% of young people think the struggles they face buying their first home is one of the biggest problems we have in Britain today.

Millions of mortgage holders don’t have life insurance - Nearly three million households with mortgages do not have life insurance despite many lenders recommending it to borrowers, research has revealed.

First-time landlords have record choice - Our latest findings reveal that the number of deals for first-time landlords has increased by 13% since the start of the year to reach a record high level. So, those considering entering the buy-to-let (BTL) market now have more products to choose from than ever before.

Bank of Mum and Dad extends its remit - Second steppers are increasingly relying on a financial boost from family and friends in order to make their next home purchase, a survey has revealed.

Are you paying £6,000 too much for your mortgage? Gulf between cheap new deals and legacy rates quadruples as banks profit from inertia - Banks have more than quadrupled the gulf between their best fixed-rate mortgage deals and the standard variable rates they charge long-standing borrowers. Figures in an official report lay bare how, to boost their profits, lenders are squeezing borrowers who fail to shop around at the end of their mortgage term.




Buy-to-let Watch: We need to keep it covered - With a quarter of landlords taking out the wrong type of insurance, brokers and advisers must ensure that they provide the correct advice.

The future of digital identity verification will be as simple as saying 'Hi, it's me' - A child born today won’t have a bank card, hold a passport, or carry cash. Her first payment device may be a phone, a watch, or an item of clothing. Her signature will be a thumbprint and her ID card an iris scan. Her DNA – the fibre of her being – will underpin her digital identity.

This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.


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