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Mortgage market review October 2018

Our latest news and commentary

Publication date:

09 October 2018

Last updated:

13 November 2018


Technical Connection

Mortgage market update for October 2018


Lender rate war sees 95% LTV deals hit record low - An increase in competition for low deposit borrowers has driven down mortgage rates. The average rates for a 95% loan to value (LTV) mortgage are the lowest on record despite the Bank of England’s two 0.25% rate rises in the last year, according to data from Moneyfacts.

Inflated house prices in London commuter belt could bear Brexit brunt - The gap between the price of a house compared to a flat in some parts of the country has skyrocketed in recent years, and new speculation suggests these locations may be the hardest hit in a no-deal Brexit.

London house price growth sinks to near-decade low - London house prices plunged to their lowest rate of growth in nearly a decade in July, falling 0.7 per cent as the capital's property market slowdown shows no sign of easing up.

Remortgaging continues to drive market – Remortgage approvals continued to drive the mortgage market in August as gross lending dropped slightly on last year, according to the latest figures from UK Finance.


Back in focus: The FCA’s ‘competition’ priorities – Ever since its first market study in 2014, the FCA has pursued a line of reasoning that suggests a lack of choice leads to poor consumer outcomes. Its assumption is that better competition in the mortgage, cash savings or platform markets will mean better results for individuals.

Mortgage lenders hit by prices super-complaint – Citizens Advice has launched a super-complaint with the Competition and Markets Authority (CMA) calling for the ‘loyalty penalty’ currently paid by consumers in the mortgage market to be remedied.


New tool set to ‘revolutionise’ mortgage journey - A tool to help homebuyers check which mortgage deals they are likely to be accepted for has been launched to make the challenge of purchasing a house a little easier.

Bath BS latest lender to join L&G panel - Bath Building Society is the latest lender to join the Legal & General Mortgage Club panel. Members can now access Bath’s residential and buy-to-let products, which accommodate British expats living abroad, limited companies and portfolio lending.

Kensington Mortgages launches 10-year fix and other offers
- Kensington Mortgages has launched a 10-year fixed residential mortgage and exclusive offers on its residential and buy-to-let range for a limited time only, available from today.

Accord launches into Help to Buy Market – Accord Mortgages has launched into the Help to Buy market in a bid to establish itself as a specialist new-build lender. The intermediary-only lender now offers Help to Buy equity loan mortgages at 75 per cent loan-to-value (LTV), with rates beginning at 1.8 per cent on a two-year fix.


First-time buyers oblivious to benefits of shared ownership - Lack of knowledge about Shared Ownership appears to be one of the biggest barriers to young people using the scheme to get onto the property ladder, a survey has revealed. Despite the fact 40% of first-time buyers were relying on financial support from family or friends to buy a property – even with a mortgage – only 6% had taken advantage of the scheme, according to TotallyMoney.

Buyers now linger 23% longer on viewing: Emoov – UK buyers are taking 23 per cent longer – 65 minutes – to view homes before making a purchase, according to research by Prior to January 2016, the average UK home buyer spent 53 minutes viewing properties and tended to look at two homes before deciding. Now buyers, on average, view 2.4 properties before making the decision and spend over one hour on the viewing process.

Consumer confidence in home purchase drops – Consumer confidence in home purchase dropped in September, the BSA’s Property Tracker Index has found. Currently more of the UK public are negative about this being the right time to buy a new home than positive.

Tens of thousands of first-time home buyers suffer delays caused by flaw in Help to Buy Isa  – Tens of thousands of first-time buyers have had their purchases delayed because of a flaw in the Help to Buy Isa, research has found.

Study suggests older home owners would welcome incentives to downsize – Stamp duty reform could incentivise home owners aged 65 and over in the UK to downsize, freeing up properties for families looking to move up the housing ladder, new research suggests.


The financial crisis' most significant moment – At about 8pm on 6 October 2008, I got a phone call from the news desk of the Daily Mail where I worked as a journalist. Reports were swirling that Icesave bank was about to go bust. Was it true?

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.