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Mortgage market review September 2018

Trends, news and commentary

Publication date:

11 September 2018

Last updated:

14 November 2018


Technical Connection

Mortgage market update for September 2018


What’s the five-year forecast for buy-to-let? - Falling numbers of mortgage approvals for house purchases in the buy-to-let market experienced following the Government crackdown on the sector will continue until 2021, according to the latest analysis.

Mortgage market split one month after base rate - Following last month's decision to increase the base rate of interest to 0.75%, many borrowers will have been waiting with bated breath to see what their providers would do, especially those on variable rate mortgage deals. Now that we are a month along, let's see how right they were to be worried.

House prices see biggest monthly drop since 2012 - The latest Nationwide house price index reported August’s annual growth dropped to 2 per cent, from 2.5 per cent in July, sitting at an average house price of £214,745.

Increase in mortgages for poor-credit borrowers - Borrowers with poor credit history now have a greater choice of mortgages to help them get back on track with 118 new deals hitting the market in the last six months.

Mortgage lending drops to lowest level in two years - According to the Bank of England’s money and credit report for July 2018, households borrowed an extra £3.2bn against their homes compared with the previous month’s figure - but monthly net lending still dropped to its lowest level since April 2017.


Huge numbers of borrowers rely on Help to Buy - New data providing an insight into how the scheme, which provides loans towards the deposit on new build homes, has fared revealed 196,102 properties have been purchased under the initiative.

FCA mortgages review draws familiar response - Industry bodies have published their responses to the interim findings of the FCA’s mortgages market study, with issues including price and the role of advice among those highlighted by provider representatives.



Fluent Money launches equity release service with app - Fluent Money has launched into the equity release market with Fluent Lifetime, including a mobile app allowing live messaging between client and adviser.

Co-op intermediary brand to launch 95% LTV
- The Co-operative Bank’s intermediary mortgage brand will introduce a range of 95 per cent loan-to-value products next week. As of 3 September, Platform will launch two-, three- and five-year fixed rate mortgages at 95 per cent loan-to-value available to new customers buying a home.

Brightstar launches short-term let range - Brightstar Financial has partnered with Foundation Home Loans to launch a short-term let range. The short-term let is available to both individuals and limited companies, up to 75 per cent loan-to-value (LTV).

M&S Bank targets first-time buyers with updates – M&S Bank has added a 95 per cent loan-to-value and 35-year term products to its mortgage range, in a move to target first-time buyers.


Rise in over-55s releasing equity to fund property purchase - Retirement Advantage discovered, between April and the end of June this year, one in ten of its customers took out an equity release loan in order to fund a new property purchase compared to 6.6% in 2017.

Parents sacrifice pension to help kids onto property ladder - According to the study, which was carried out by Legal & General and the Centre for Economics and Business Research (Cebr), the problem was worse amongst those parents or grandparents between 55 and 64. In this age group the number who accepted a lower standard of living after lending money to their family increased to 27%.

Homeowners taking risks by not getting advice on equity release - Almost half of the people surveyed thought they could handle taking out the product without advice, and 29% said they would not trust a financial adviser. This is despite 69% admitting they did not have a clear understanding of equity release.


Why advisers should embrace the second charge mortgage market - It’s been a key question in the mortgage industry since the Mortgage Credit Directive (MCD) was introduced (and, by rights, should have been a topic of discussion much earlier) - are mortgage brokers as engaged with second charge products as they should be?


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.