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Mortgage market review - June 2018

News

Publication date:

19 June 2018

Last updated:

25 October 2018

Author(s):

Cicero Group

Mortgage market update for June 2018.

MACRO NEWS AND DRIVERS

Over half of London properties to be priced out of stamp duty relief in 10 years - Over half of the 52,002 properties that currently qualify for a stamp duty relief for first-time buyers in London will be priced out of the tax cut in the next ten years, according to mortgage adviser L&C Mortgages.
http://www.cityam.com/287152/-over-half-london-properties-priced-out-stamp-duty-relief

Annual house price growth slumps to 1.9%: Halifax - House prices in the three months to May were 1.9% higher than the same period a year earlier, lower than the 2.2% annual growth recorded in April, according to the latest Halifax house price index.
http://www.financialreporter.co.uk/finance-news/annual-house-price-growth-slumps-to-19-halifax.html

Two-year tracker market rebounds as rates fall to post-rate rise low - The average two-year tracker rate has fallen for the third consecutive month to reach 1.92%, the lowest it has been since the base rate rise back in November 2017, according to research from Moneyfacts.
http://www.financialreporter.co.uk/mortgages/two-year-tracker-market-rebounds-as-rates-fall-to-post-rate-rise-low.html

REGULATION AND LEGISLATION

Stamp duty rules could soon be redundant by 2028 – New stamp duty rules for first-time buyers could soon be redundant as L&C reports that four million properties could be priced out by 2028.
https://www.ftadviser.com/mortgages/2018/06/07/stamp-duty-rules-could-soon-be-redundant-by-2028/

PRODUCT DEVELOPMENTS AND INNOVATION

Yorkshire BS launches new Help to Buy ISA range - Yorkshire Building Society has launched a Help to Buy ISA exclusive mortgage range offering two and five-year fixed rate options for borrowers with a 5% or 10% deposit.
http://www.financialreporter.co.uk/mortgages/yorkshire-bs-launches-new-help-to-buy-isa-range.html

HSBC cuts cost of FTB mortgages - HSBC has cut interest rates on its larger LTV deals and removed a number of its mortgage fees, in a bid to appeal to more first-time buyers.
https://www.mortgagestrategy.co.uk/hsbc-cuts-cost-of-ftb-mortgages/

HSBC cuts 90% LTV mortgage rates - HSBC has cut interest rates on all 90 per cent loan-to-value (LTV) mortgage products and removed upfront fees.
https://www.ftadviser.com/mortgages/2018/06/11/hsbc-cuts-90-ltv-mortgage-rates/

Skipton adds new 3-year fixes in range refresh - Skipton Building Society is introducing new three-year fixed rate products as part of a refresh of its core residential mortgage range.
https://www.mortgagestrategy.co.uk/skipton-adds-new-3-year-fixes-in-range-refresh/

Metro Bank launches new five-year fixed rate LTV bands - Metro Bank has reintroduced a number of LTVs in its residential core five-year fixed range, with rates starting from 1.94%.
http://www.financialreporter.co.uk/mortgages/metro-bank-launches-new-five-year-fixed-rate-ltv-bands.html

Platform cuts rates - Platform, the intermediary brand of the Co-Operative Bank, has cut rates on mortgages with 2 and 5-year terms between 60-90% loan-to-value.
https://www.mortgageintroducer.com/platform-cuts-rates/

Coventry cuts 10-year fix to 2.39% - Coventry cuts 10-year fix to 2.39%t 10-year fixes by 0.10% to 2.39% to 50% loan-to-value and 2.49% to 65% LTV.
https://www.mortgageintroducer.com/coventry-cuts-10-year-fix-2-39/

CONSUMER TRENDS

More borrowers are fixing their mortgage for five years - There has been a surge in the number of borrowers remortgaging into five-year deals, the latest mortgage lending statistics have revealed. Popularity of longer-term deals had waned at the start of the year with borrowers opting to fix their mortgage for two years, according to the LMS remortgage report.
https://www.whatmortgage.co.uk/news/remortgaging/borrowers-fixing-mortgage-five-years/

FTBs reach record levels of completions through brokers: IMLA - The highest number on record of applications from first-time buyers through intermediaries resulted in completion in the first quarter of 2018, according to IMLA.
https://www.mortgagestrategy.co.uk/ftbs-reach-record-levels-of-completions-through-brokers-imla/

Research reveals the Waitrose effect on UK house prices - Living near a supermarket in the UK adds an average premium to the price of a home of £21,500, but it does depend on which brand, new research has found.
https://www.propertywire.com/news/uk/research-reveals-waitrose-effect-uk-house-prices/

Is the housing market at ‘tipping point’? - High costs and a lack of properties mean millions of people either can’t get onto the housing ladder or are stuck in unsuitable housing, a survey of homeowners has discovered.
https://www.whatmortgage.co.uk/news/housing-market-tipping-point/

EXPERTS CORNER

Can the industry avoid falling prey to a burgeoning interest-only crisis? - With almost 1.7 million (or one in five) mortgage borrowers in the UK still on interest-only deals, there are growing fears throughout the financial industry that a looming repayment crisis could lead to an upturn in repossessions and post-mortgage debts. Interest-only borrowers service the interest on their mortgages by making monthly payments, leaving the capital debt to be repaid at the end of the term.
http://www.financialreporter.co.uk/blogs/can-the-industry-avoid-falling-prey-to-a-burgeoning-interest-only-crisis.html

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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.