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Mortgage market review November 2017

Mortgage market review November 2017 

MACRO NEWS AND DRIVERS

Bank of england hikes interest rates for first time in a decade
The Bank of England has raised interest rates for the first time in more than decade, reversing last year’s cut. Members of the Bank’s Monetary Policy Committee voted by a majority of 7-2 to raise interest rates from 0.25% to 0.50%
https://www.whatmortgage.co.uk/news/bank-england-hikes-interest-rates-first-time-decade/

Confidence in UK housing market at its lowest since 2012
According to the latest Halifax Housing Market Confidence Tracker, one in five people think house prices will fall, the lowest since December 2012. Consumer optimism on house dropped from 44 points in April to 30 points in October, matching the record fall seen following the EU referendum result. 
http://www.lloydsbankinggroup.com/globalassets/documents/media/press-releases/halifax/2017/confidence-in-uk-housing-market-slips-to-lowest-level-in-five-years.pdf

UK house prices rise at fastest rate since February
House prices rose last month at their fastest rate since February, despite confidence in the market at its lowest level in five years. According to the latest  Halifax House Price Index, annual house prices went up 4.5% in the three months to October – up from 4% in September.
http://www.financialreporter.co.uk/finance-news/annual-house-price-growth-rises-to-45-halifax.html

Housing market slows
The UK housing market stalled last month, with most regions seeing a drop in sales as demand from new buyers continues to decline, according to surveyors.
http://www.rics.org/us/news/news-insight/press-releases/most-uk-regions-now-showing-drop-in-sales-as-buyer-demand-continues-to-fall/l 

REGULATION AND LEGISLATION

Chancellor urged to scrap stamp duty to solve housing crisis
Philip Hammond is being urged by a leading think-tank to scrap stamp duty to boost the economy and help solve the housing crisis.
http://www.telegraph.co.uk/news/2017/10/30/philip-hammond-urged-scrap-stamp-duty-budget-give-uk-economy/

HMRC forced to refund over £160 million in overpaid stamp duty
HM Revenue and Customs has refunded over £160 million to ordinary homebuyers hit with unexpected tax bills following last year’s 3% stamp duty hike, according to mutual insurer Royal London.
https://www.whatmortgage.co.uk/news/hmrc-forced-refund-160-million-overpaid-stamp-duty/

PRODUCT DEVELOPMENTS AND INNOVATION

Sesame launches portfolio landlords referral service
Sesame Network and PMS Mortgage Club have launched a referral service to help advisers deal with buy-to-let mortgage enquiries from portfolio landlords.
http://www.sesame.co.uk/news/Pages/Sesame-and-PMS-launch-specialist-referral-service-for-portfolio-landlords.aspx

Mortgage works launches limited company product
The Mortgage Works (TMW) has announced plans to pilot a limited company buy-to-let mortgage product range for professional landlords. Nationwide’s buy-to-let arm will trial five products through brokers Mortgage Intelligence and The Buy to Let Business, with plans for a wider roll-out if the pilot phase proves successful.
https://www.trustedmortgagebrokers.co.uk/mortgage-works-launches-limited-company-product/

Scottish Widows unveils five-year fixes
Scottish Widows Bank has unveiled limited edition five-year fixed rate products for remortgagers looking to secure longer-term deals. The lender is offering an interest rate of 1.74 per cent up to 50 per cent loan-to-value (LTV) and 1.84 per cent to 60 per cent LTV, both with a £749 fee.
https://www.ftadviser.com/mortgages/2017/11/07/scottish-widows-unveils-five-year-fixes/

Bank of Ireland provides online mortgage offers 
Bank of Ireland (BoI) has launched an online service allowing brokers to view and download mortgage offers online.
https://www.trustedmortgagebrokers.co.uk/bank-of-ireland-provides-online-mortgage-offers/

Teachers launches broker exclusive remortgage
Teachers Building Society has launched a two-year fixed rate mortgage for remortgagers exclusively via intermediaries. The product has an interest rate of 1.79 per cent and is available up to 80 per cent loan-to-value, with no arrangement, application or valuation fees.
https://www.ftadviser.com/mortgages/2017/11/07/teachers-launches-broker-exclusive-remortgage/

CONSUMER TRENDS

First-time buyers underestimate the costs of buying a home
New research from Aldermore has revealed the lack of understanding around the house buying process and the associated costs amongst those looking to buy their first home.
https://www.aldermore.co.uk/about-us/newsroom/2017/11/first-time-buyers-underestimate-the-financial-burden-of-home-buying/

Middle class 50-55 year-olds most likely to be hit by interest rate hike 
Middle class homeowners in their 50s are most likely to be hit the hardest by last week’s interest rate rise, new research shows. According to Experian, middle class 50-55 year-olds are most impacted by the rise in interest rates to 0.50%.
https://www.whatmortgage.co.uk/news/middle-class-50-55-year-olds-likely-hit-interest-rate-hike/

Increase in repossessions raises concerns about interest rate hike
The number of repossessions rose in the third quarter, raising concerns about the impact of last week’s interest rate rise on borrowers struggling to make ends meet.
https://www.aldermore.co.uk/about-us/newsroom/2017/11/first-time-buyers-underestimate-the-financial-burden-of-home-buying/

Third of property sellers forced to cut asking price
More than a third of sellers have dropped their asking price in the biggest spate of reductions for five years, according to Rightmove.
https://www.ftadviser.com/mortgages/2017/11/13/third-of-property-sellers-forced-to-cut-asking-price/

EXPERTS CORNER

What does the interest rate rise mean for your mortgage?
Millions of borrowers will see their interest rate go up immediately, whilst those signing up for new mortgages will also have to pay more. So what do those in the industry think about it all?
https://www.whatmortgage.co.uk/news/interest-rate-rise-mean-mortgage/

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