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Mortgage market review July 2017

Mortgage market update for July 2017

MACRO NEWS AND DRIVERS

Landlord confidence dips as tax burdens rise
According to Kent Reliance's Buy to Let Britain report, just 41% of landlords are confident about the prospects for their portfolios following the recent taxation and regulatory changes - a fall from 44% in the previous quarter.
http://www.kentrelianceforintermediaries.co.uk/docs/default-source/news/buy-to-let-britain-6---press-release-3-1-(clean)-(1).pdf

CML revises buy-to-let growth forecast as tax regulations bite
The Council of Mortgage Lenders has revised it buy-to-let growth forecast downwards to reflect tax and prudential burdens in the housing and mortgage markets.
https://www.cml.org.uk/news/press-releases/gross-lending-up-12-in-may-and-new-cml-buy-to-let-forecast/

May mortgage sales rocket by 25.4%
UK monthly mortgage sales increased by 25.4% in May to £17 billion, according to Equifax Touchstone. Buy-to-let figures jumped 26.1% to £2.7 billion, with residential up 25.2% (£2.88 billion) to £14.3 billion.
http://www.financialreporter.co.uk/mortgages/may-mortgage-sales-soar-by-25-to-34bn.html

UK houses sales have fallen by a third in the last decade
According to Lloyds Bank, property sales across England fell 7% in 2016 to 848,857, with levels a third lower than those of the last housing boom.
https://www.theguardian.com/business/2017/jun/21/house-sales-uk-lloyds-housing-market-crash

UK house prices have shot up £60,000 since interest rates were cut in 2009
According to online estate agents HouseSimple.com, average UK property prices have risen 41.2% over the past eight years since interest rates came crashing down.
http://www.propertywire.com/news/uk/average-prices-uk-40-since-low-interest-rates-introduced-2009/

REGULATION AND LEGISLATION

Help to Buy has helped over one million people
Over 285,000 homeowners have used one or more of the Help to Buy schemes, while 960,000 people have opened a Help to Buy ISA.
http://www.whatmortgage.co.uk/news/help-buy-helped-one-million-people/

Brexit fails to deter UK home buyers
According to estate agent haart, three out of four homeowners say the vote to leave the EU has not influenced their decision to buy or sell their property.
http://www.propertyreporter.co.uk/property/brexit-fears-fail-to-deter-buyers-and-sellers-according-to-new-survey.html

Government brings forward ban on letting agent fees
The government has announced plans to bring forward a ban on unfair letting agent fees. The Draft Tenants' Fees Bill outlined in the Queen's speech will ban letting agents from charging tenants fees.
http://www.whatmortgage.co.uk/news/government-brings-forward-ban-letting-agent-fees/

PFS and AMI call for fair mortgage regulation
Regulation must be fair and levies on the mortgage industry must be fair, a senior figure at the Personal Finance Society has stated.
https://www.ftadviser.com/mortgages/2017/06/16/pfs-and-ami-call-for-fair-mortgage-regulation/

PRODUCT DEVELOPMENTS AND INNOVATION

Aldermore launches new website to boost broker service
The site, intermediaries.aldermore.co.uk, allows brokers across residential, buy-to-let, commercial mortgages and property development finance to access all of the specialist lender's offerings in one place.
https://www.ftadviser.com/mortgages/2017/06/23/aldermore-launches-new-website-to-boost-broker-service/

Santander launches mortgage video service
Santander customers can now apply for a mortgage via an in-branch video link that connects them to a UK-based adviser. The service, which is available in 63 of the bank's branches, has been designed to help as many customers as possible with their mortgage needs.
http://www.thisismoney.co.uk/money/mortgageshome/article-4632354/Buyers-apply-mortgage-video-Santander.html

Skipton offers a new range of interest-only mortgages
Skipton Building Society has introduced a range of interest-only mortgages to help people on the property ladder. The new range provides 60 per cent, 70 per cent and 80 per cent loan-to-value products, which are available to purchase and remortgage customers.
https://www.trustedmortgagebrokers.co.uk/skipton-offers-a-new-range-of-interest-only-mortgages/

Keystone introduces online case tracking
Keystone Property Finance has launched MyKeystone, an online case tracking facility for brokers using its classic range of buy-to-let mortgages.
https://www.ftadviser.com/mortgages/2017/06/21/keystone-introduces-online-case-tracking/

Metro bank drops fees for mortgage switchers
Metro Bank has dropped product fees for existing residential borrowers looking to switch rates or secure a further advance on loans up to £2m.
https://www.trustedmortgagebrokers.co.uk/metro-bank-drops-fees-for-mortgage-switchers/

Virgin money mortgage refresh includes broker exclusive
Virgin Money has unveiled a range of new residential and buy-to-let mortgages - including a product exclusive to intermediaries. The lender's product revamp means two-year fixed rate deals for residential borrowers are now available at 1.28 per cent up to 65 per cent LTV, 1.44 per cent up to 80 per cent LTV and 1.52 per cent up to 85 per cent LTV.
https://www.ftadviser.com/mortgages/2017/06/15/virgin-money-mortgage-refresh-includes-broker-exclusive/

CONSUMER TRENDS

Second steppers also need help from the bank of Mum and Dad
According to Lloyds Bank, almost a third (32%) of second steppers think they will still rely on financial help from family and friends to move up the property ladder.
http://www.lloydsbankinggroup.com/Media/Press-Releases/press-releases-2017/lloyds-bank/240617_Second_Steppers_2/

Bank of Mum and Dad could fund nearly 450,000 onto the property ladder in 2017
According to new research from Legal & General and economics consultancy Cebr, using equity release to free up capital from the family home could help as many as 442,900 individuals to buy a house this year.
http://www.whatmortgage.co.uk/news/bank-mum-dad-fund-nearly-450000-onto-property-ladder-2017/

Bank of Mum and Dad risks inheritance tax gift trap
The Bank of Mum and Dad risks falling foul of rules on gifting and inheritance tax, according to Key Retirement. Its study shows almost half (47%) of parents and grandparents do not understand the tax rules on gifting, and nearly three out of four (73%) say the rules are very complicated.
https://www.pressreader.com/uk/daily-express/20170614/282114931558690

First-time buyers that fail to haggle over price
More than half of first-time buyers regret not negotiating the price before buying their home, new research shows. In fact, some first-time buyers are so desperate to get on the housing ladder that one in five are prepared to fork out on average an additional £7,758 to secure their chosen property.
http://www.mortgageintroducer.com/first-time-buyers-negotiate-get-better-deal/#.WVDopevyuUk

EXPERTS CORNER

How technology is reshaping the way you buy a home
The UK property market has been relatively slow to adjust to the digital age, but as Bob Dylan so aptly pointed out: "The times, they are a-changin'." Stephen Little takes a look at some of the companies trying to shake up the industry.
http://www.whatmortgage.co.uk/feature/technology-reshaping-way-buy-home/

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