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Mortgage market review - May 2018

News

Mortgage market update for May 2018

MACRO NEWS AND DRIVERS

Good news as mortgage arrears plummet to record low - The housing market may have seen some depressing figures of late but there’s good news about mortgage arrears - they’re at their lowest ever.

https://www.estateagenttoday.co.uk/breaking-news/2018/5/good-news-as-mortgage-arrears-plummet-to-record-low

House prices see biggest monthly fall since 2010, Halifax says - UK house prices saw the biggest monthly fall for nearly eight years during April, according to the Halifax, as demand for homes weakened. The lender said prices fell by 3.1% between March and April, the biggest decline since September 2010.

http://www.bbc.co.uk/news/business-44037087

Residential development land prices in England muted in first quarter of 2018 - The value of greenfield land in England increased by 0.9% in the first quarter of 2018 while urban brownfield land rose 0.4% and development land values in London were unchanged.

https://www.propertywire.com/news/uk/residential-development-land-prices-england-muted-first-quarter-2018/

Asking prices in Britain up slightly in May, latest index shows - Asking prices in Britain rose by a marginal 0.5% this month to an average of 308,807 in England and Wales, and £182,681 in Scotland, the latest index figures show.

https://www.propertywire.com/news/uk/asking-prices-britain-slightly-may-latest-index-shows/

 

REGULATION AND LEGISLATION

What fifth anniversary of Help to Buy means for borrowers - When the government launched the Help to Buy equity loan scheme in April 2013, it was mainly with the aim to give first-time buyers a leg-up.

https://www.ftadviser.com/mortgages/2018/05/10/what-fifth-anniversary-of-help-to-buy-means-for-borrowers/

Legislation change could catch out HMO landlords - New government rules mean thousands of buy-to-let investors will be forced to become licensed HMO landlords from 1 October.

https://www.mortgagestrategy.co.uk/legislation-change-catch-hmo-landlords/

FCA report calls for greater innovation in mortgage market - The FCA's interim mortgage market report has uncovered "little evidence" providers' commercial arrangements lead to poor consumer outcomes although it did identify "a significant impediment" to shopping around.

https://www.professionaladviser.com/professional-adviser/news/3031715/fca-report-calls-for-greater-innovation-in-mortgage-market

 

PRODUCT DEVELOPMENTS AND INNOVATION

New mortgage range for over-55s launched - A growing demand for mortgages for older borrowers has prompted a specialist bank to launch a new range of later-life products.

https://www.whatmortgage.co.uk/news/new-mortgage-range-55s-launched/

100% mortgages that crashed the economy are BACK: Barclays and the Post Office are among big lenders offering the loan deals to attract first time buyers without a deposit - Major high street banks are offering 100 per cent mortgages again to buyers desperate to get on the housing ladder.
http://www.thisismoney.co.uk/news/article-5719549/Remember-100-mortgages-crashed-economy-Theyre-back.html

Skipton unveils new range of broker-only mortgages - Skipton Intermediaries has launched five intermediary-only mortgages including a two-year tracker free of early repayment charges (ERCs).

https://www.ftadviser.com/mortgages/2018/05/10/skipton-unveils-new-range-of-broker-only-mortgages/

Coventry for intermediaries offers £500 cashback on residential mortgages - Coventry for intermediaries has launched 2-year and 5-year fixed rate residential mortgages, offering £500 cashback for homemovers and first-time buyers on some mortgages.

https://www.mortgageintroducer.com/coventry-intermediaries-offers-500-cashback-residential-mortgages/

Newcastle Intermediaries revamps 95% LTV deals - Newcastle Intermediaries has refreshed a number of fee assisted two-year fixed rate deals.

https://www.ftadviser.com/mortgages/2018/05/09/newcastle-intermediaries-revamps-95-ltv-deals/

NatWest increases mortgage rates - NatWest has increased rates on a number of its residential and buy-to-let mortgage deals.

https://www.mortgagestrategy.co.uk/natwest-increases-mortgage-rates/

Aldermore launches into later-life lending - Specialist lender Aldermore is entering the later-life lending market with the launch of a range of products available on loans of up to £400,000.

https://www.mortgagestrategy.co.uk/aldermore-launches-later-life-lending/

 

CONSUMER TRENDS

Will you use a broker? Over 80% of homeowners would - Brokers were given the seal of approval by 81% of people who had bought a property in the last 12 months. They told Legal & General, as part of its Mortgage Myths campaign, they were impressed by the wide range of products to which brokers provided access and for the fact they took the ‘hassle’ out of the application process.

https://www.whatmortgage.co.uk/news/first-time-buyers/will-use-broker-80-homeowners/

Slowest property market for six years as 75% of homes in the £500K to £1M bracket are sold below the asking price - Owners of expensive family homes are being forced to cut prices as they struggle to sell them, a new report from industry insiders revealed today. 

http://www.thisismoney.co.uk/money/mortgageshome/article-5708957/UK-property-prices-suffer-worst-levels-growth-seen-2012.html

Buy-to-let must be long game to make a profit - Despite rising costs, landlords could see net profits of more than £265,500 on their properties over 25 years, research has suggested.

https://www.ftadviser.com/mortgages/2018/05/14/buy-to-let-must-be-long-game-to-make-a-profit/

‘Gazundering’ and time wasting deterring homeowners from selling - Lack of funds, time wasting and ‘gazundering’ are among the reasons for more than 300,000 property transactions falling through every year.

https://www.whatmortgage.co.uk/news/gazundering-time-wasting-deterring-homeowners-selling/

 

EXPERTS CORNER

Buy-to-let Watch: Rooting for the underdog - As an industry, the buy-to-let sector could certainly be considered the underdog at present, following a few turbulent years for everyone operating in it. The media would have you think the writing is on the wall for landlords amid a raft of changes since 2015 and there are also some commentators who think buy-to-let is all but dead.

https://www.mortgagestrategy.co.uk/buy-let-watch-rooting-underdog/