Mortgage market update for January 2017
Macro news and
Government confirms thousands of new starter
Thousands of starter homes to help first-time buyers get on the
property ladder will be built this year, ministers have announced.
The government has confirmed that 2017 will see the first starter
homes being built on brownfield sites in 30 local authorities
across the country.
Mortgage approvals hit 8-month high in
UK mortgage approvals rose to an eight-month high in November,
according to the latest Bank of England lending statistics.
Estate agents worried mortgage lending restrictions are
damaging the housing market
New research has revealed that two out of five estate agents
believe that mortgage lending restrictions on over-55 customers are
causing problems in the housing market..
UK house prices rise but growth expected to slow in
Despite house prices rising for the fourth successive month in
December, growth is expected to slow in 2017 as a decline in the
economy and a squeeze on spending power start to bite.
Property prospects post-Brexit
The short-term effects of the Brexit vote were probably
over-estimated, but the long-term impact may have been
underestimated. The Bank of England showed its determination to
reduce the risk of recession by cutting already rock-bottom
interest rates, although the fall in sterling and almost certain
rise in inflation means a further reduction is unlikely before the
Govt opens £7bn affordable housing
Communities Secretary Sajid Javid has opened the Government's £7
billion expanded affordable housing programme. Previously announced
by the Chancellor in November's Autumn Statement, housing providers
can now apply for a share of the fund, which was allocated an
additional £1.4 billion to deliver 40,000 new affordable housing
starts across the country.
Product developments and
Aldermore revamps residential mortgage
Aldermore has lowered rates on many of its products and launched a
replacement for the Help to Buy mortgage guarantee scheme. Its new
range for buyers with a 5% deposit includes a two-year fix with an
interest rate of 4.98%.
Mansfield launches 75% LTV buy-to-let range
Mansfield Building Society has launched a buy-to-let range up to
75% LTV and updated its rental income criteria in response to the
Prudential Regulation Authority's (PRA) new underwriting
Accord offers customers £1,000 boost
Accord Mortgages is giving borrowers who opt for an offset
mortgage a £1,000 boost when their home loan completes. The
incentive is designed to help borrowers to reduce the amount of
interest they have to pay on their mortgage, and is available for a
Scottish Widows launches re-mortgage range
Scottish Widows Bank has launched a new range of re-mortgage
products, including the option to offset. The range includes both
two and five-year fixed products with rates starting from 1.29 per
Coventry offers lowest ever fixed rate
Coventry for Intermediaries has launched is lowest ever two-year
fixed rate mortgage at 1.29 per cent. For a loan-to-value (LTV) of
50 per cent it will offer a 1.29 per cent rate for residential
mortgages for two years with a £999 fee.
Luton tops the table for house price growth in
Luton is rapidly becoming one of the most desirable places to live
in the UK, with house prices soaring more than anywhere in the UK
over the past year. This is more double the 7.5% increase in the UK
as a whole.
Landlords expect to be hit by tax relief changes and
More than half of landlords believe they will be hit by the
forthcoming changes to both income tax relief and stricter mortgage
affordability checks, according to new research.
Shared ownership properties out of reach for most
Shared ownership schemes are failing to help first-time buyers get
on the property ladder because they are too expensive, according to
new research by Which? Mortgage Advisers.
Market watch: new year, new insight?
Welcome to the bright and shiny New Year. Like the opening day of
the football season, the first couple of weeks bring a fresh dose
of optimism that we must all hang on to, no matter what. It is set
to be an interesting year, with the usual twists and turns along