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Mortgage market review September 2017

Mortgage market update for September 2017

MACRO NEWS AND DRIVERS

House price growth will slow to 1.5% this year
UK house price growth is expected to fall in 2017 as weakening economic conditions and rising inflation start to hit household incomes. According to estate agent Countrywide, house price growth is predicted to fall to 1.5% in 2017 compared with 5% last year.
http://uk.businessinsider.com/countrywides-housing-market-prediction-2017-15-growth-2017-8

Number of mortgage deals jumps by 61% in five years
The number of mortgage deals on the market has increased by 61% in the last five years, new research shows. According to Moneyfacts, following 15 months of increases there are now 4,657 deals on the market.
http://www.yourmortgage.co.uk/editors-pick/borrowers-can-now-choose-4500-products/

"Unrealistic" sellers looking to downsize are struggling to find homes
Estate agents are reporting a surge in inquiries from homeowners looking to downsize to raise cash but warn that unrealistic sellers are struggling to find homes, according to a new study. Independent research for equity release referral service Key Partnerships shows that 44% of estate agents have seen a rise in inquiries from older homeowners looking to downsize in the past year.
http://www.mortgagesolutions.co.uk/news/2017/08/11/demand-downsizing-sellers-unrealistic-price/

UK inflation holds steady, easing fears of a rate rise
UK inflation remained steady in July following a drop in fuel prices, easing fears that the Bank of England could hike interest rates for the first time in 10 years.
http://www.ey.com/uk/en/newsroom/news-releases/17-08-03-boe-sits-tight-at-august-mpc-meeting

REGULATION AND LEGISLATION

Buy-to-let mortgage costs fall ahead of regulation changes
Buy-to-let mortgage costs continue fall in value, suggesting the outlook for investors is "favourable" despite incoming regulation changes, according to Mortgage Brain.
https://www.mortgage-brain.co.uk/pdf/Press-Release/News-Boost-for-investors-as-BTL-mortgage-costs-fall-again.pdf

Action on future ground rent clauses leaves existing leaseholders stranded
The Government recently unveiled plans to ban the sale of new-build leasehold homes under proposals to prevent homeowners paying unfair fees - but existing leasehold owners have been left out in the cold.
https://www.whatmortgage.co.uk/news/action-future-ground-rent-clauses-leaves-existing-leaseholders-stranded/

Stamp duty increase drives up rents
New research has revealed that rents are going up as a direct result of the 3% stamp duty increase introduced in April last year. The annual rate of rental growth in Britain doubled between June and July to 2.2%, driven by a turnaround in the London market.
http://news.sky.com/story/falling-supply-pushing-up-rents-says-countrywide-10988130

PRODUCT DEVELOPMENTS AND INNOVATION

Accord unveils new remortgage options with a £495 fee
Accord Mortgages has unveiled a host of new remortgage options with a £495 fee, including a two-year fix at 1.42% with a 65% loan-to-value (LTV). There is also a two-year fix at 1.46% with a 75% LTV and a rate of 1.55% for those with a 20% deposit.
https://www.whatmortgage.co.uk/news/accord-unveils-new-remortgage-options-495-fee/

Teachers Building Society unveils help to buy remortgage
Teachers Building Society has launched a new fee-free Help to Buy remortgage which offers £400 cash back to cover legal and admin fees. The three-year fixed rate remortgage at has a rate of 2.99%. It comes with no arrangement fee and an application fee of £99.
https://www.teachersbs.co.uk/news/press-releases/details/2017/08/04/new-help-to-buy-remortgage-with-cash-back-from-teachers-building-society

HSBC to launch mortgage broker platform with Capita
HSBC is developing a platform for mortgage brokers as part of a partnership with Capita. The new software completely replaces the current system and HSBC said the platform will provide "greater automation".
https://www.ftadviser.com/mortgages/2017/08/17/hsbc-to-launch-mortgage-broker-platform-with-capita/

Tesco Bank launches five-year fixed rate remortgages below 2%
Tesco Bank has introduced two new five-year fixed rate remortgage products at 1.94% and 1.99%. The Bank has also reduced the rates across a selection of its two, three and five-year fixed rate house purchase and remortgage products.
http://www.financialreporter.co.uk/mortgages/tesco-bank-launches-five-year-fixed-remortgage-range-from-194.html?DT=2

Scottish Widows revamps remortgage range
Scottish Widows Bank has trimmed rates on its remortgage deals and widened its product range.
http://www.mortgageintroducer.com/scottish-widows-refreshes-flexible-remortgage-range/#.WZqogj6GOUk

CONSUMER TRENDS

Number of first-time buyers using gifted deposits falls
The number of first-time buyers and buyers of investment properties using gifted deposits - typically money from a family member to help buy a property - has fallen in the last two years, according to new research from My Home Move.
http://www.myhomemove.com/news/gifted-deposits-fall-for-both-first-time-buyers-and-investors

One in four landlords plan to sell up following buy-to-let crackdown
New data from the Residential Landlords Association suggests things are going to get even worse for tenants already seeing rent hikes, with nearly one in four landlords planning to sell up over the next year.
http://www.yourmoney.com/mortgages/landlords-expect-sell-properties-increase-rents/?ac=10&as=128&ag=168

Parents warned over Bank of Mum and Dad risks
Parents need to be aware of a wide range of unexpected costs and risks when helping their children with a house deposit, according to new research from mutual insurer Royal London. The new guide, The Bank of Mum and Dad - Five things to consider before opening a branch, highlights a range of issues which parents need to consider and some of the pitfalls that they need to be aware of.
https://www.royallondon.com/Global/documents/GoodWithYourMoney/Good%20with%20your%20money%20guide%20-%20Hidden%20costs%20of%20opening%20the%20Bank%20of%20Mum%20and%20Dad.pdf/

EXPERTS CORNER

UK financial services set for slowdown
UK financial services should brace itself for a less than buoyant near-term future, according to a closely watched barometer, as lending activity falters due to a combination of stagnant wages and higher inflation.
http://www.ey.com/uk/en/issues/business-environment/financial-markets-and-economy/item---forecast-headlines-and-projections

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