Occasionally Mortgage Shop's comments are featured in the press, here you will find some examples of news stories that we have contributed to.
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Former Brexit secretary Sir David Davis among leading voices calling for Governor Andrew Bailey to cut interest rates to help businesses and mortgage payers. A former minister has called on the Bank of England to play its part in boosting Britain by slashing interest rates today. Sir David Davis, the former Brexit Secretary, urged the Bank’s Governor Andrew Bailey to cut the current 5.25 percent base rate to "help everyone from business owners to mortgage payers". Slash interest rates NOW to give Britain a desperately needed boost, Bank of England told Former Brexit secretary Sir David Davis among leading voices calling for Governor Andrew Bailey to cut interest rates to help businesses and mortgage payers. Sir David Davis, left, has urged Andrew Bailey to cut interest rates to help people paying mortgages. A former minister has called on the Bank of England to play its part in boosting Britain by slashing interest rates today. Sir David Davis, the former Brexit Secretary, urged the Bank’s Governor Andrew Bailey to cut the current 5.25 percent base rate to "help everyone from business owners to mortgage payers". “The Bank’s imperative right now for our country must be to develop growth,” he said. “We have to have higher salaries and payments for public services. “The Bank’s part of that should be a cut in interest rates to help everyone from business owners to mortgage payers.” Experts discuss: https://www.express.co.uk/news/uk/1861844/bank-of-england-slash-interest-rates-david-davis
The Bank of England has raised interest rates to 5% which is the highest in 15-years which will make borrowing more expensive. The banks monetary policy committee raised the base rate by half a percentage point on Thursday morning which will push many over the cliff. Following the Bank of England’s decision to increase the base rate to 5%, UK newswire, Newspage, sought the views property experts. https://londonlovesproperty.com/property-investors-ponder-whether-to-tango-or-tiptoe-out-of-the-market-amid-the-5-interest-rate-hike/
Brokers have welcomed the support on offer in meeting the new Consumer Duty requirements, though have warned that advisers need to be proactive in making the most of the resources on offer. It’s just the latest example of mortgage firms developing support measures for brokers on Consumer Duty, amid concerns that some brokers see the new rules as simply a ‘rebrand’ of TCF. Mortgage brokers told Mortgage Solutions that while there is plenty of support available, directly authorised advisers have to hunt it out for themselves and be proactive. They also emphasised that Consumer Duty should be seen as an encouragement to embrace a fresh approach. Read their comments. https://www.mortgagesolutions.co.uk/news/2023/05/12/consumer-duty-help-is-there-if-you-look-for-it-%e2%80%92-analysis/
It is surprising how many savers have forgotten about the effects of inflation as more clients look to put money in cash, advisers have said. https://www.ftadviser.com/investments/2023/08/09/number-of-clients-forgetting-inflation-surprising-say-advisers/?page=1
High street lender Santander has announced further rate reductions on selected residential remortgage fixed rates by 0.04% to 0.11%, with lowered rates available from tomorrow, September 7. However, brokers were apparently disappointed by the small rate cuts made by Santander. https://www.mpamag.com/uk/mortgage-types/residential/santander-cuts-rates-by-up-to-011/458762?hsmemberId=627862&tu=dfdc9428-69d3-4fa0-bb8c-cbbfb4c802a1&utm_campaign=&utm_medium=20230906&_hsmi=273188599&_hsenc=p2ANqtz-8o5mFfCXzBSf2NufKDGj_Hig2BccSMjy9xlOmlybqqmP8LP7JtiepSi-A12vkD9wKQ_641LXUiHcjz84BjnfE6B3ZW8Q&utm_content=dfdc9428-69d3-4fa0-bb8c-cbbfb4c802a1&utm_source=
Brokers have suggested that schemes like the shared ownership programme can prove effective in helping more first-time buyers onto the ladder, and prevent homeownership becoming an 'elite privilege'. A study last week from Yorkshire Building Society revealed a downbeat attitude among prospective first-time buyers about their purchasing prospects, with the majority believing homeownership is rapidly becoming a privilege reserved only for the wealthiest. Brokers were divided on how true this really is in practice, though some were keen to highlight that support programmes like shared ownership offer a route through the difficulties faced by many would-be homeowners. https://www.mortgagesolutions.co.uk/news/2023/11/03/how-to-stop-homeownership-becoming-an-elite-privilege%e2%80%92-broker-analysis/
Average UK private rents have increased by 9% in the 12 months to February 2024, confirmed the ONS latest price index of private rents published today (20th March). This represents the highest annual percentage change since this UK data series began in January 2015. Regionally, average month rents have increased to £1,276 in England, £723 in Wales and £944 in Scotland. In England, private rent inflation was highest in London (10.6%) and lowest in the North East (5.7%). The highest average private rent throughout Great Britain was registered in Kensington and Chelsea, London — reaching £3,248 — while the lowest was seen in Dumfries and Galloway, Scotland (£472). Commenting on the latest ONS private rents data many industry experts have blamed landlords’ rising costs and higher BTL mortgage rates, which is forcing them to increase rents. See Comments: https://btlinsider.co.uk/article/19706/the-rental-market-is-broken-average-uk-private-rents-rise-by-9-per-cent-as-landlords-pass-on-higher-costs-onto-tenants?actId=ebwp0YMB8s3pAUWMQu2_9NUcvuQDVN7aqMHi_sC2WSq2JFACWgpR8NkBPOq6bN2o&actCampaignType=CAMPAIGN_MAIL&actSource=516923
Mortgage lenders and brokers have rarely had a higher profile than right now, when they are seen as key to the taste of the housing market’s future - whether that’s a crash or a soft landing. Here are the views of eight in the industry. Put simply…do they think there will be a housing crash? Read their opinions: https://www.introducertoday.co.uk/breaking-news/2023/6/will-there-be-a-housing-crash
With inflation rising by 0.7% on a monthly basis, according to the latest consumer price inflation (CPI) figures from the Office for National Statistics, Mortgage Introducer sought the views of several brokers to understand what this means for the housing market. Brokers react to the latest inflation data: https://www.mpamag.com/uk/mortgage-industry/market-trends/inflation-rise-is-a-disaster-for-the-market/450294?tu=dfdc9428-69d3-4fa0-bb8c-cbbfb4c802a1&utm_campaign=&utm_medium=20230623&_hsmi=263669015&_hsenc=p2ANqtz-8SWXcZVdNlcwgCM50DDLXhFn54NSFdyVqZxUlOflSooJWxI_gqIZCeCPnFboYm8z772S2xSYCF-3y0Q0ATNcl2QCQKdw&utm_content=dfdc9428-69d3-4fa0-bb8c-cbbfb4c802a1&utm_source=
Halifax has just announced selected fixed rate cuts, which will go live from tomorrow. Halifax has delivered a "a massive mortgage curveball" as it cuts fixed rates. Halifax has just announced selected fixed rate cuts, which will go live from tomorrow. With a number of other major lenders announcing rate increases today and this week, we asked brokers what's going on: https://www.birminghammail.co.uk/news/cost-of-living/halifax-issues-24-hour-warning-28686818?utm_source=linkedin.com&utm_medium=social&utm_campaign=sharebar
Today’s announcement from the Bank of England that UK base rates are to increase by 0.25% from the previous rate of 4.25% to a new rate of 4.5%, must hardly come as a surprise. Today’s move signals the twelfth consecutive time since December 2021 that the Bank’s Monetary Policy Committee (MPC) has hiked bank rate to the highest level since 2008. It focuses on the Bank’s aim of reducing inflation back towards it’s 2% target, however the impact on house owners and mortgages is set to add to the pain that the cost of living crisis is already delivering for millions of Brits. Mortgage, property and other finance experts have been sharing their views on what the latest hike means for property markets and borrowers with IFA Magazine as follows: https://ifamagazine.com/article/mortgage-and-property-experts-comment-as-bank-of-england-hikes-base-rate-to-4-5/
The impact of rising interest rates is felt further as policymakers at the Bank of England prepare to make their next determination on borrowing costs. Gary of www.MortgageShop.com gives his qualified opinion. https://news.sky.com/story/mortgage-approvals-at-lowest-level-since-january-12996413
Homeowners remortgaging their properties are coming off cheap fixes onto standard variable rates of 7%+ because of big delays - of up to two years - at HM Land Registry (HMLRJ. We ask financial and property experts for their opinions and they don't hold back. https://www.yourmoney.com/mortgages/borrowers-stuck-on-7-default-rates-as-land-registry-backlog-beyond-a-joke/
The Bank of England has made the decision to leave rates unchanged, with financial services experts, estate agents and other small business owners based around the UK saying it's a "sigh of relief". The Chair invited the Committee to vote on the proposition that Bank Rate should be maintained at 5.25 per cent. After the Bank of England decision, some experts said it would be "music to the ears" of mortgage holders with the UK's biggest lenders like Lloyds, Barclays, HSBC, Natwest and Santander. Experts Opinion Follows: https://www.birminghammail.co.uk/news/midlands-news/music-ears-warning-issued-anbody-28032037
The number of residential mortgage products available in the UK market has risen above 5,000, according to recent research from Moneyfacts. And with the average mortgage rates not rising as sharply, some may be forgiven for looking upon the market more optimistically as of late. But with Prime Minister Rishi Sunak today warning that rates may once again hit 6% – and many lenders being forced to pull products from market in order to reprice, Newspage asked brokers what they really think of the market at the moment. Read industry comments: https://theintermediary.co.uk/2023/06/number-of-residential-products-rises-above-5000/
HSBC has announced rate cuts on its residential fixed rate products, becoming the first high street lender to do so, as swap rates continue to head on a downward trajectory. From tomorrow, July 26, certain two-, three-, and five-year fixed fee saver, fixed standard, premier exclusive, and tracker standard products at up to 90% loan-to-values (LTV) on the lender’s residential first-time buyer and home mover products, residential remortgage, and international residential purchase ranges will have their rates decreased. Meanwhile, Accord Mortgages has also announced reductions of as much as 0.45% on its residential fixed rates, also taking effect from tomorrow. Financial Advisers React: https://www.mpamag.com/uk/news/general/hsbc-becomes-first-high-street-lender-to-slash-mortgage-rates/453884
On an obvious slow financial news day leading financial advice magazine IFA asked financial adviser and mortgage firms "where did you get the handle" - the response in some cases came as a surprise, NOT! https://ifamagazine.com/category/mortgage-and-property/
he launch by Skipton Building Society of a deposit-free mortgage, specifically aimed at renters has taken the headlines by storm. Although there are some 100 per cent mortgages in the market, they are few and the difference is they all require a guarantor. So on the face of it, Skipton’s offering looks like a game changer. The experts give their comments: https://www.ftadviser.com/mortgages/2023/05/16/brokers-call-for-more-lender-innovation-after-skipton-100-mortgage-launch/
Advice firms are under significant strain at the moment as a result of rising costs, heavier work loads and increasingly stringent regulations, Embark has said. The results of Embarks latest investor confidence barometer, published today (May 16), showed that on top of these general concerns, many advisers are still not ready for the consumer duty. Experts give their comment: https://www.ftadviser.com/fca/2023/05/16/third-of-advisers-unprepared-for-consumer-duty/
Barclays has just announced reductions to its Fixed Rate purchase deals, with some rates up to 0.39 per cent cheaper at the higher Loan to Value pricing. These rate changes are effective from tomorrow, Wednesday 8 May. Newspage asked mortgage brokers for their thoughts on this announcement from Barclays, and whether other lenders will follow suit. This was a common strategy early in January as lenders moved purchase and remortgage rates in different directions. Financial Experts Discuss: https://www.msn.com/en-gb/news/newsbirmingham/barclays-announces-change-to-accounts-from-tomorrow-in-refreshing-departure/ar-BB1lXTRA
Today’s news from the Office for National Statistics (ONS) has revealed the latest UK inflation data for the year to June 2023. For once it is good news, but how good is it really? The data show a fall in CPI inflation to 7.9% in June, down from 8.7% in the year to May, to the lowest level in over a year. Importantly, core inflation has also fallen by more than was expected, down to 6.9% from 7.1% last month. Experts React: https://ifamagazine.com/latest-uk-inflation-data-better-than-expected-but-what-does-it-mean-for-mortgages-and-property-experts-react/
Over the past two days, challenger lenders like MPowered and Gen H have turned the tables with a fresh wave of rate reductions. Citing the recent dip in swap rates, MPowered said they are “taking the opportunity to pass the savings to you and your customers by lowering all of our 2-year fixed rates”. UK newswire, Newspage, asked brokers for their views and whether the high street will soon follow suit. https://ifamagazine.com/specialist-lenders-spearhead-rate-cuts-but-will-high-street-follow-brokers-give-their-views/
Britain's mortgage woe deepened today as HSBC revealed it would withdraw more deals from the market and financial experts warned further pain is on the way. The bank said it was pulling deals for the second time in less than a week, with all new business residential mortgages being removed their broker services at 5pm today 'in order to maintain our service levels', before its rates rise again tomorrow. It comes after HSBC temporarily withdrew all residential and buy-to-let new business mortgage deals via brokers last Friday to stay 'within our operational capacity'. Mortgage holders are facing ever-higher repayment costs amid concerns the Bank of England will raise interest rates again on June 22 to help keep inflation under control. See the experts view: https://www.thisismoney.co.uk/money/article-12193577/Mortgage-rates-fall-experts-predict-period-calm.html
From tomorrow (Tuesday 1st of August), Halifax will increase the maximum working age, using earned income to age 75. Mortgage professionals shared their thoughts on how this move may affect the market going forward. https://theintermediary.co.uk/2023/07/halifax-increases-maximum-working-age-for-mortgages-to-75/
TSB has announced reductions across a range of its financial products, including significant cuts in rates for residential, product transfer and additional borrowing. The rate cuts go up to 0.35% and start from a baseline of 4.89%. Financial Advice firms react: https://theintermediary.co.uk/2023/10/tsb-cuts-rates-on-residential-mortgages-and-additional-borrowing-products/
Barclays has just announced reductions to its Fixed Rate purchase deals, with some rates up to 0.39 per cent cheaper at the higher Loan to Value pricing. These rate changes are effective from tomorrow, Wednesday 8 May. We asked mortgage brokers for their thoughts on this announcement from Barclays, and whether other lenders will follow suit. This was a common strategy early in January as lenders moved purchase and remortgage rates in different directions. https://www.birminghammail.co.uk/news/cost-of-living/barclays-announces-change-accounts-from-29125184
A number of mortgage lenders are raising their costs again in a move which will “bring further tears to the eyes of the general public”. HSBC and Virgin Money are all increasing the cost of new deals this month. It follows a similar announcement by Santander and TSB and Coventry earlier in the week. Just yesterday Natwest also announced further increases to most of its fixed rate mortgage deals. https://www.cityam.com/mortgage-rates-are-going-back-up-but-where-will-they-end-up/
House prices have declined for the fourth consecutive month in December with the rate of annual house price dropping to 2.8%, according to Nationwide Building Societies' latest house price index. Property and financial experts give their opinion on the potential of a minor blip or a major fall in property prices in 2023. https://theintermediary.co.uk/2022/12/house-prices-dip-again-in-december-nationwide/
Nationwide will reduce selected mortgage rates by up to 0.43 per cent, it has announced. This includes rates across their New Business, Switcher, Additional Borrowing, Existing Customers Moving Home and Tracker product ranges, the UK's largest building society said. Experts Comment: https://www.birminghammail.co.uk/news/midlands-news/nationwide-announces-new-rules-mortgage-28153811
As a remortgage and property legal conveyancing company looks to integrate with the AI tool ChatGPT we ask a panel of financial advisers for their opinions on such progress. https://www.financialreporter.co.uk/should-the-mortgage-industry-make-use-of-ai-tools-brokers-react.html
The deal that has seen banking powerhouse Barclay's swoop for specialist lender Kensington Mortgages has met with mixed feelings from financial advisers and mortgage broker firms. https://theintermediary.co.uk/2023/03/barclays-acquisition-of-kensington-gets-mixed-reaction-from-brokers/
Newspage asked brokers for their thoughts on this interesting re-price from Santander, and what effect this might have on the rest of the market in the coming days. Read their comments: https://www.birminghammail.co.uk/news/cost-of-living/santander-announces-change-accounts-brilliant-28615225
PR platform asked mortgage brokers and financial services tech experts how fintech lenders compare to traditional high street lenders, e.g. what their strengths and potential weaknesses are, if they are stronger in any particular areas, and how much business they place with fintech lenders versus the high street. Some were very skeptical, saying “fintech is the biggest con going” and that the term is used to “establish eye-watering valuations”, while others said fintech lenders “bring a lot to the table” and that “most standard mortgages can go through fintech lenders quite well”. https://www.financialreporter.co.uk/what-are-the-pros-and-cons-of-fintech-vs-high-street-lenders-brokers-react.html
Mortgage brokers have reported a rise in popularity of product transfers as borrowers opt for the low-stress option and lenders prioritise customer retention. With the volume of new mortgage lending down so far this year, mortgage lenders are focusing on keeping customers, with brokers reporting a noticeable improvement in product transfer options. The FT's Jane Matthews investigates. https://www.ftadviser.com/mortgages/2023/04/17/homeowners-opt-for-product-transfers-over-remortgaging/
The Bank’s Money and Credit report said mortgage approvals for house purchases “rose significantly”, to 52,000 in March from 44,100 in February. However, it said the latest total remains below the monthly average for 2022 of 62,700. Lucian Cook, head of residential research at estate agent Savills, said: “Today’s bounce in mortgage approvals reflects an increasingly stable and competitive mortgage market. Read the experts opinions: https://www.theargus.co.uk/news/national/23500237.spring-bounce-home-buyer-mortgage-approvals-rise-march/
An early election and more support on affordability would be on the wishlist for brokers, were they able to make a request from Santa. With just three days until Christmas, thoughts are no doubt turning towards what Santa might have in his sack for the world’s little children. But what are brokers’ Christmas wishes? What do hard-working intermediaries want from Father Christmas? And Will their dreams come true on Christmas morning (or next year)? Please Santa, may I have a new government? A host of brokers said they would look for Santa’s help in tackling the political situation, both in the UK and overseas. https://www.mortgagesolutions.co.uk/news/2023/12/22/brokers-christmas-wishes-an-election-affordability-help-and-a-cure-for-gout/?utm_source=Mortgage+Solutions+subscribed&utm_campaign=a0c9b0e714-EMAIL_CAMPAIGN_7_4_2023_11_57_COPY_124&utm_medium=email&utm_term=0_747b260d73-a0c9b0e714-276721806
How to survive UK mortgage turmoil as rates go up and deals are pulled Homebuyers have to try to navigate their way to an affordable deal with no help in the budget to ease the pain. The average mortgage rate that UK homeowners are paying is set to rise steadily over the next three years, and peak at 4.2% in 2027, according to an official prediction last week. The Office for Budget Responsibility (OBR), the Treasury’s tax and spending watchdog, says this is significantly higher than the 2% figure just over two years ago. It is the latest frustrating news for homeowners, and would-be first-time buyers, following chancellor Jeremy Hunt’s budget, which offered no relief for most – there was not a single mention of the word “mortgage” in either his speech or the main budget document.was not a single mention of the word “mortgage” in either his speech or the main budget document. The OBR forecast coincided with a string of lenders, including Barclays and HSBC, increasing rates on many new products or pulling deals. Experts Discuss: https://www.theguardian.com/money/2024/mar/11/how-to-survive-mortgage-turmoil-as-rates-go-up-and-deals-are-pulled
Rachel Maclean, the Minister of State for the Department for Levelling Up, Housing and Communities (DLUHC), has been asked to step down from her role — which is predicted to dampen the already severe housing crisis. She commented on X: “I’ve been asked to step down from my role as Housing Minister. “Disappointed and was looking forward to introducing the Renters Reform Bill to committee tomorrow and later the Leasehold and Freehold Bill. “It has been a privilege to hold the position and I wish my successor well.” The industry is therefore concerned about the lack of stability in this role and the impact this could have on the already struggling housing market. https://developmentfinancetoday.co.uk/article-desc-9789_
Some lenders are giving advisers too short of a notice period before pulling mortgage products off the market to be repriced, which is causing renewed frustration, brokers have said. Read their reactions: https://www.mortgagesolutions.co.uk/news/2023/05/17/the-return-of-short-notice-mortgage-withdrawals-is-creating-panic-among-brokers-analysis/
Brokers need to be creative in finding the right protection solutions for clients with reduced budgets, intermediaries have suggested. Household budgets continue to be under pressure as a result of a prolonged period of higher outgoings, not least on mortgages, meaning many have less money to devote towards insurance policies. Indeed, many are considering cutting protection policies just to make ends meet ? particularly the younger demographic. And while brokers reported that in the main borrowers understand the need for protection, they suggested that working around the reduced budgets to find the right policies can be a challenge. Follow the discussion: https://www.mortgagesolutions.co.uk/news/2024/01/18/brokers-bemoan-borrower-budgets-for-protection-%E2%80%92-analysis/
Brokers today said the country’s largest building society Nationwide now appears to be an outlier in the mortgage rate price war as a number of its rivals cut rates again. Nationwide has reduced the prices of its mortgages eleven times in the last fourth months, but has held firm in recent weeks as rivals began the year with what many commentators called a “price war”. All five of the other “big six” lenders - HSBC, Santander, NatWest, Barclays and Halifax owner Lloyds Banking Group - have cut rates this year. Read experts opinions: https://www.standard.co.uk/business/nationwide-mortgage-prices-interest-rates-houses-homes-property-loan-bank-of-england-borrowing-b1132707.html
Earlier this week, Skipton Building Society announced their new 100% mortgage scheme that will allow renters who are struggling to save a deposit the chance to get onto the property ladder. It’s the first no-deposit deal that doesn’t require a guarantor’s backing to launch in the UK since 2008 and the reaction to the scheme has split opinion across the financial services sector. We ask Financial Advisers for their opinion. https://ifamagazine.com/article/advisers-and-brokers-react-to-skiptons-100-mortgage/
Barclays has just announced the first sub-5% 2-year fixed remortgage product for months, which will go live on Friday. Brokers said it would fire up the rest of the High Street and take the rate war up a notch. Experts Discuss: https://londonlovesproperty.com/barclays-to-fire-up-rest-of-high-street-with-first-sub-5-2-year-fixed-remortgage-product-for-some-time/
Britain's homeowners are now spending more income on their mortgage than at any time since 2008, it was revealed today as average rates closed in on 6 per cent. Repayments on new loans accounted for an average of 20 per cent of borrowers' gross incomes between January and April, according to trade body UK Finance. This is up from 17 per cent in 2020 and is now at the highest level since it hit 23 per cent during the financial crisis. Furthermore, the latest data covered a period that came before the huge rise in mortgage rates which only began three weeks ago. The rates increase has continued this week, with the average two-year fixed mortgage jumping again to 5.98 per cent today from 5.92 per cent yesterday. Read expert comments: https://www.thisismoney.co.uk/money/article-12202145/Britons-spending-income-mortgage-time-2008.html
On the surface of it, the inflation data published this morning by the ONS might appear to be good news as the headline number dipped back to single figures. However there are signs that inflation is becoming rather embedded in the UK economy which is not such good news. But what does this latest data mean for the mortgage and property markets in the UK? Mortgage brokers and other property experts have been sharing their reaction to the news as follows: https://ifamagazine.com/article/what-do-todays-inflation-data-mean-for-mortgage-and-property-markets-experts-react/
TSB was this morning the latest lender to announce rate cuts. With 2- and 5-year swap rates also coming down over the past 24 hours, brokers welcomed the move by the TSB, albeit with caveats. On Friday 25th August TSB is reducing rates on 2-year fixed house purchase and remortgage, 0-75% loan-to-value (LTV), by 0.10% and lowering its 3-year fixed remortgage, 0-75% LTV, by 0.10%. Brokers were quick to react to the news when canvassed. https://theintermediary.co.uk/2023/08/tsb-latest-lender-to-announce-rate-cuts-as-swaps-edge-down/
Following Robert Gardner of Nationwide Building Society outlining the challenges faced by First Time Buyers, in the lenders HPI update, we asked leading mortgage brokers which lenders are the most innovative when it comes to first-time-buyers, in relation to underwriting, criteria, and product creation. https://ifamagazine.com/category/mortgage-and-property/
Industry experts agreed that whether a buyer or a seller has the upper hand can differ by location, property type, and more. We asked estate agents, conveyancers, mortgage brokers and other property experts if it's currently a buyers' or a sellers' market. Here are their responses: https://www.financialreporter.co.uk/is-it-currently-a-buyers-or-sellers-market-brokers-react.html
Barclay's Bank UK has today (1st March) completed the acquisition of Kensington Mortgages Company Limited (KMC) including a portfolio of mortgages consisting primarily of deals originated by the lender from October 2021. Mortgage brokers and financial advisers give their opinion of this market shrinkage of providers. https://bridgingandcommercial.co.uk/article/19117/barclays-acquires-kensington-mortgages
We asked mortgage brokers and financial services tech experts how fintech lenders compare to traditional high street lenders. The views of brokers from around the UK can be seen in this piece. https://ifamagazine.com/article/fintech-versus-high-street-lenders-brokers-deliver-their-verdict-and-identify-pros-and-cons/
The number of mortgage approvals being made to home-buyers bounced upwards in March, according to Bank of England figures. The Bank’s Money and Credit report said mortgage approvals for house purchases “rose significantly”, to 52,000 in March from 44,100 in February. Read what the experts say. https://www.standard.co.uk/business/money/spring-bounce-as-homebuyer-mortgage-approvals-rise-in-march-b1078755.html
BoE interest rate hold marks new chapter for UK mortgage lending. Advisers give their comments: https://www.ftadviser.com/mortgages/2023/09/22/boe-interest-rate-hold-marks-new-chapter-for-uk-mortgage-lending/
Households across Britain are continuing to struggle with rampant inflation which is impacting almost every aspect of life, from food prices to mortgage costs. The latest figures from the Office for National Statistics (ONS) showed inflation was still as high as 10.1 per cent in March after a surprise acceleration in February. The figure has rocketed over the past year on the back of spiking energy prices after the Russian invasion of Ukraine and more recent jumps in food costs. We ask a variety of people across skillsets for comments. https://www.dailymail.co.uk/news/article-12071739/How-UK-inflation-affects-mortgage-rates-fuel-costs-heres-means.html
Publishing its financial results for 2023, NatWest has revealed that it recorded an operating profit of £6.2bn, up 20% on 2022. The bank’s return on tangible equity was 17.8%, compared with 12.3% at the end of 2022, while income, excluding notable items, was up 10% on 2022 at £14.3bn, with total expenses up 5%. In 2023, the bank increased its lending to customers by £9bn and helped over 379,000 retail banking customers to buy or remortgage their home. In addition, NatWest also confirmed the appointed of Paul Thwaite as its group chief executive officer and executive director with immediate effect. https://theintermediary.co.uk/2024/02/natwest-confirms-ceo-and-sees-20-annual-profit-increase-in-2023/?utm_medium=email&utm_source=rasa_io&utm_campaign=newsletter
Mortgage rates have been on the rise but lenders such as Santander are continuing to help property owners during a trying time. Earlier today (November 28), the bank confirmed it was making reductions to interest rates across its selected residential and buy-to-let fixed rates in the new business and product transfer ranges. Mortgage brokers welcomed the news with many suggesting it could lead to similar actions by other lenders, read their comments: https://www.express.co.uk/finance/personalfinance/1840116/santander-mortgage-interest-rates-reduction-cut
Santander has revealed that, on Wednesday 29 November, it is reducing selected residential and buy-to-let fixed rates in the new business and product transfer ranges. In terms of new business, selected standard residential fixed rates will be reduced by between 0.03% and 0.27%, and selected New Build exclusive fixed rates will be reduced by between 0.05% and 0.29%. Financial Experts give their opinions: https://www.birminghammail.co.uk/news/midlands-news/santander-announces-new-rules-mortgage-28189029
A series of mortgage rate increases among the biggest lenders, including NatWest, Santander, and Halifax, have been announced. Experts Discuss: https://www.ftadviser.com/mortgages/2024/03/12/blow-to-borrowers-as-major-lenders-hike-mortgage-rates/?xnpe_tifc=bIzlhIYXx.VXbIHD4DbXxypsafeWaeiWhFWAhoB9bMP8b9UDRG8.adJShFzpOk4uxF1JbfYjxfeL4nTT&utm_source=exponea&utm_campaign=FTA%20-%20Morning%20Bulletin%20-%20Newsletter%20-%2012.03.24&utm_medium=email
Residential and buy-to-let rates are reducing by up to .29%. Santander is reducing selected residential and buy-to-let fixed rates in its new business and product transfer ranges. Available from tomorrow, selected residential new business rates will be reduced by between 0.03% and 0.27%, and selected new build exclusive fixed rates will decrease by between 0.05% and 0.29%. Additionally, selected buy-to-let fixed rates are reducing by between 0.05% and 0.17%. In terms of product transfers, selected residential fixed rates will be reduced by between 0.03% and 0.10% and selected buy-to-let fixed rates by up to 0.17%. Speaking out qualified brokers welcomed the news and said the fact that a lender the size of Santander has cut should trigger other lenders to follow suit. https://www.financialreporter.co.uk/santander-reduces-new-business-and-product-transfer-rates.html#:~:text=Residential%20and%20buy%2Dto%2Dlet,reducing%20by%20up%20to%2029bps.&text=%22Hot%20off%20the%20heels%20of,to%20keep%20the%20market%20alive.%22
The Innovation and Tech issue of the B&C Magazine delves into the fascinating world of fintech and proptech, bringing you in-depth features about the latest technology developments. With ChatGPT taking over the world (or at least everyone’s attention), it seems only fitting to focus our cover story on whether this type of innovation and other generative AI technology poses a threat, or opportunity for the specialist finance market. Several industry experts weigh in on this, read their comments: https://issuu.com/bandcmagazine/docs/issue_27/46
Mortgage brokers have said borrowers should remain calm and look beyond average rate figures as Moneyfacts revealed the average two-year fixed rate was now 6.01 per cent. This is the highest the average two-year fix has been since December, when they started to steadily fall as the impact of the mini Budget eased. The average five-year fixed rate is currently 5.67 per cent. Rates started to rise again in April when it was revealed that inflation was not falling as quickly as initially thought and swap rates began to increase. At the time, the average two-year fixed rate was 5.44 per cent. Read the experts comments: https://www.mortgagesolutions.co.uk/news/2023/06/19/brokers-urge-borrowers-to-keep-calm-as-average-two-year-fix-breaches-six-per-cent/
Barclays has just announced it is “making a number of changes across our residential purchase and remortgage range and our Buy to Let range. These changes consist of increases and decreases,” meanwhile, NatWest has also announced rate changes this afternoon. Barclays said that “we’re making changed to our Existing Customer product range, details of which are as follows: Existing Customer Rate Changes: Switcher: Rate increase of 5bps and up to 10 bps on selected 2 and 5 year deals. Financial Advisers Discuss: https://londonlovesproperty.com/lenders-getting-nervous-ahead-of-hunts-budget-as-barclays-and-natwest-announce-rate-changes/
The mortgage market saw a sudden shift in outlook last week as higher than predicted inflation figures left the door open to further interest rate rises. Following the recent mini-Budget, many believed the mortgage landscape was improving steadily. However, the Chancellor’s indication that he is comfortable with the possibility of higher rates, despite the risk of recession, has caused significant worry amongst professionals. Read the experts opinions: https://theintermediary.co.uk/2023/05/brokers-react-to-curveball-week-for-mortgage-market/
Three-year fixed mortgages could be a good product for borrowers who feel alternatives are too long or short, but a lack of options and inconsistent pricing means they are often not chosen. Speaking to brokers about whether there had been an increased take-up in three-year fixes to appease and attract people who feel there could be a marked improvement in rates and the economy in less than five years, many pointed out that not enough lenders offered them. https://www.mortgagesolutions.co.uk/news/2023/04/06/three-year-fixes-are-the-goldilocks-option-but-the-cupboard-is-bare-analysis/
Nationwide Building Society is increasing support for mortgage members improving the energy efficiency of their homes by reducing the interest rate on Green Additional Borrowing to 0%. The new 0% Green Additional Borrowing products, which will be available from Thursday 1 June, will enable up to 5,000 households with a Nationwide mortgage to borrow £5,000-£15,000 up to a maximum of 90% loan-to-value (LTV) across the 2- or 5-year product term. Experts React: https://theintermediary.co.uk/2023/05/nationwide-supports-mortgage-members-making-green-home-improvements-with-0-borrowing/
EXCLUSIVE: A finance expert has said you only have to look at the US to see how 'woefully behind the curve' the Bank of England is in its battle with inflation. The scathing criticism comes as Consumer Prices Index (CPI) inflation was 6.7 percent in August, down from 6.8 percent in July, despite widespread expectations it could increase as rising oil prices fed into higher costs at forecourts. Advisers give their opinions: https://www.express.co.uk/finance/personalfinance/1814672/andrew-bailey-shambolic-performance
As we edge closer to March, the patterns of 2024 are firmly in place in the mortgage market, and principal among these is rising demand amongst first-time buyers. So, how is this area of the market performing in 2024? Mortgage Introducer reached out to several brokers operating within the space to find out: https://www.mpamag.com/uk/mortgage-types/first-time-buyer/first-time-buyer-market-how-is-it-performing-in-2024/478605?utm_campaign=Editorial-MI-NS&utm_content=283680139&utm_medium=social&utm_source=linkedin&hss_channel=lcp-10642925
With a number of major lenders introducing fixed rate reductions this week, many commentators have speculated that the mortgage market is finally on a slow road to recovery following months of turmoil and 14 consecutive base rate rises. https://theintermediary.co.uk/2023/09/a-period-of-adjustment-brokers-react-to-current-fixed-rates/
Santander has become the first major lender to announce an increase in mortgage rates after a surprise rise in inflation last week. A selection of the bank’s standard residential fixed rates will increase by up to 0.20 percentage points for purchase and remortgage clients from Wednesday. The changes were announced as the UK’s biggest building society, Nationwide, said it was cutting its prices, bringing it closer in line with competitors. The other five “big six” lenders, including Santander, reduced their prices in the first weeks of 2024, following data in December which showed that inflation was falling faster than expected. But global uncertainties have prompted some experts to suggest that higher interest rates may be around for a while yet. Last week, the consumer prices index (CPI) measure of inflation increased for the first time since February 2023 – from 3.9 to 4 per cent. Experts give their opinions: https://inews.co.uk/news/santander-fixed-rate-mortgage-deals-increase-2868827
Do mortgage comparison sites have a role in financial advice? Broker firms and Financial Advisers share their views with the mortgage, property and investment publication IFA magazine. https://ifamagazine.com/category/mortgage-and-property/
Reliance on the Bank of Mum and Dad will persist until house prices drop. While the entire housing market has endured a raft of challenges in recent times, first-time buyers have felt the brunt of these. As a result, many first-time buyers’ reliance on the Bank of Mum and Dad has only grown. So, what have brokers seen on the ground? https://www.mpamag.com/uk/mortgage-industry/market-trends/how-important-is-the-bank-of-mum-and-dad/468742?hsmemberId=627862&tu=dfdc9428-69d3-4fa0-bb8c-cbbfb4c802a1&utm_campaign=&utm_medium=20231204&_hsmi=285070640&_hsenc=p2ANqtz-_ZGgXZXi_7_4oJ4BVjT6SDEQ_Id8lvvgWcaX-Rizp0UcLWViIsGomsdHdlSSOkf9Vns4tbgS2JkITvbL8M9CW3noRxTg&utm_content=dfdc9428-69d3-4fa0-bb8c-cbbfb4c802a1&utm_source=
Virgin Money has announced the launch of its new Fix and Switch Mortgage and boasts: "You won’t find a five-year fixed, with a two-year ERC, from any other provider." Virgin's Fix and Switch is a five-year fixed rate mortgage with a difference – its ERC only lasts until the end of year two. After that, there’s no ERC. This means customers get five-year protection against rates going up, but if they go down, they can switch to another deal after two years. Newspage asked mortgage brokers for their comments on this newly announced mortgage deal: https://www.birminghammail.co.uk/news/cost-of-living/virgin-media-issues-message-customers-28517365?utm_source=whatsapp&utm_medium=social&utm_campaign=sharebar
Gen H will launch a product range for first-time buyers (FTBs) that combines its mortgage and legal services under one roof, effective tomorrow. The lender's FTB bundle includes access to a conveyancing service provided by Gen H Legal, exclusive reduced mortgage rates on two-, three- and five-year fixed rate products at loan-to-values (LTVs) up to 95%, and free valuations. Gen H Legal says it will pass all its profits back to the customer in the form of lower interest rates. The UK's top advisers give their opinions. https://www.mortgagestrategy.co.uk/news/gen-h-combines-mortgage-and-legal-services-for-ftbs-in-new-product-range/
In a market beset by challenges for first-time buyers, the increasing importance of family assistance is clear to see. Parents are expected to provide £17 billion in gifts and informal loans this year, with most transfers from the over-50s to children in their late 20s and early 30s, according to the Institute for Fiscal Studies. Mortgage Introducer spoke to Gary Bush (pictured), financial adviser at MortgageShop https://www.mpamag.com/uk/mortgage-types/residential/how-important-is-the-bank-of-mum-and-dad-for-first-time-buyers/466399
UK mortgage approvals slumped in September amid mounting signs of stress in the property market, according to official figures before the Bank of England’s next decision on interest rates on Thursday. Figures from the central bank showed net borrowing of mortgage debt decreased from £1.1bn in August to a net repayment of £900m in September – the lowest since April this year. Reflecting the impact of the sharpest rise in borrowing costs in decades, net remortgaging approvals collapsed to 20,600 – the lowest level since January 1999 – as more people stayed with their existing lender, or paid off their debts where they were able to do so. Experts give their opinions: https://www.theguardian.com/business/2023/oct/30/uk-mortgage-approvals-interest-rates-property-market
The London property market is bouncing back as fewer people in the capital search for countryside homes and others who have left consider moving back, experts say. More Londoners are now deciding to stay in the capital as staff are encouraged back into the office and the city's property market appears to regain its appeal to buyers. Others who have moved out from London to the countryside say they have been unimpressed by the lack of things to do, poor local transport and nosy neighbours. Experts give their feelings: https://www.dailymail.co.uk/news/article-13390965/London-property-market-countryside-Rightmove-Foxtons-Hamptons.html
Inflation figures have hit their lowest level in several months, following highs of 11.1% in October 2022, according to latest figures. In an announcement released this morning, the Office for National Statistics (ONS) confirmed that UK inflation fell to 7.9% for the month of June. This marks a substantial decline of 0.8%, which saw figures remain steady at 8.7% in May. In light of these figures, industry experts have been sharing their reactions to the news, and have been speculating as to what this may mean for the market going forward. Reaction: https://theintermediary.co.uk/2023/07/this-news-will-be-a-great-relief-to-all-industry-reaction-to-ons-inflation-figures/
Following the Nationwide Building Societies release of the latest House Price Index data this story shares the views of financial advisers, estate agents and mortgage brokers with us. https://ifamagazine.com/category/mortgage-and-property/
Mortgage brokers have said borrowers should remain calm and look beyond average rate figures as a financial comparison site revealed the average two-year fixed rate was now 6.01%. Read theie comments: https://www.yourmoney.com/mortgages/borrower-blues-average-two-year-fixed-rate-mortgage-breaches-6-but-brokers-urge-calm/
EXCLUSIVE: Zero-deposit mortgages could prove invaluable to people trapped in extortionately-priced rental cycles, but are they as good as they sound? Express.co.uk spoke to mortgage experts to find out the positives as well as the potential fallbacks. https://www.express.co.uk/finance/personalfinance/1761261/zero-deposit-mortgage-pros-cons
Nationwide Building Society has reduced the interest rate on its green additional borrowing products to 0%. The new 0% green additional borrowing products, which will be available from Thursday 1st June, will enable up to 5,000 households with a Nationwide mortgage to borrow £5,000-£15,000 up to a maximum of 90% LTV across the two or five-year product term. The experts give their opinions: https://www.financialreporter.co.uk/nationwide-launches-0-green-mortgage-product.html
Gary Bush confirms his position with regard to the UK financial regulators upcoming planned changes on targeted support and simplified advice, as proposed by the Financial Conduct Authority, must not allow providers to walk away from their liabilities if anything goes wrong. We tend to like simplified processes, but we still count them as within the full advice remit – it's good to attempt to streamline transactions for the benefit of the consumer and advice firm, however we feel full responsibility should be taken regardless. Some financial products do lean towards a need for simplified advice or guidance due to not being complicated or featuring a low potential for risk, but these decisions should be enforced by the regulator and not left down to providers to potentially push the boundaries too far. https://www.ftadviser.com/opinion/2024/02/13/fca-review-must-not-allow-firms-to-walk-away-from-responsibility/
Following today's report from Halifax on H Pl - mortgage brokers and property experts have shared their reactions with Mortgage and Property Investment Magazine via a leading newswire service. https://ifamagazine.com/article/halifax-hpi-reaction-from-brokers-and-property-experts/
Effective 12 March, the lender says it's making the following changes to its Existing Customer product range and switcher rate has been hiked up to 10bps on selected 2 and 5 year deals. NatWest has increased rates for existing borrowers. Effective 12 March, the lender says it's making the following changes to its Existing Customer product range and switcher rate has been hiked up to 10bps on selected 2 and 5 year deals. Experts give opinion: https://www.birminghammail.co.uk/news/cost-of-living/natwest-under-fire-over-new-28794035
Moneyfacts reports that the average rate on a 2-year fixed mortgage in the UK has risen to over 6%, reaching 6.01%, an increase from 5.98% on Friday and 5.26% at the start of May. This increase brings average 2-year fixed mortgage rates back towards the levels witnessed in the turmoil following the mini-Budget last autumn when rates reached 14-year highs. Longer-term fixed-rate mortgages are also becoming more expensive, with the average 5-year fixed rate climbing to 5.67%, up from 5.62% on Friday. These figures mirror financial market expectations that the Bank of England will implement several interest rate hikes this year. Markets predict that rates could reach 5.75% by the end of the year. Read Expert Reaction: https://theintermediary.co.uk/2023/06/average-2-year-fix-rate-mortgage-hits-6/
Mortgage rates are continuing to fall despite some concern that upheaval in the Red Sea could hit the UK economy. The average rate on a two-year fixed deal has dropped to 5.62% compared with 5.93% at the start of the year, according to financial information service Moneyfacts. HSBC and NatWest cut some rates on Tuesday, with Metro Bank and TSB also announcing reductions. Analysts expect the benchmark interest rate to be cut during this year. https://www.bbc.co.uk/news/business-67992415
The message from the broker community is loud and clear when it comes to lenders’ last-minute product pulls. Although 11th hour withdrawals are nothing new, the current swap rate volatility has seen the frequency and intensity of such occurrences increase. Brokers’ frustration has reached a crescendo these past few months, exacerbated by longer working hours and the uncertainty for clients that late-notice withdrawals are causing. See market comments: https://www.mortgagestrategy.co.uk/cover-feature/cover-feature-brokers-call-for-fair-warning/
The mortgage guarantee scheme has been extended by 18 months to June 2025 from December 2023, following an announcement by Jeremy Hunt in the Autumn Statement today (November 22). Launched in April 2021, the scheme offers lenders the financial guarantees they need to cover the other 95 per cent of the mortgage on a house worth up to £600,000. The scheme was due to close to new accounts on 31 December 2023. Chancellor Hunt announced its extension, alongside expanding the affordable homes guarantee scheme, in his 120-page Autumn Statement document. But while the government said the scheme would continue helping prospective borrowers with smaller deposits buy a home, it has been met with little enthusiasm by mortgage brokers, read their comments here: https://www.ftadviser.com/mortgages/2023/11/22/autumn-statement-mortgage-guarantee-scheme-extended/
The UK’s biggest mutually owned mortgage provider has become the latest lender to charge more for home loans. Nationwide warned mortgage brokers today that the interest rates on much of its products would rise tomorrow. The move will take the cost of a five-year fixed rate mortgage on 95% of the value of a home to 5.24%. For first-time buyers also looking to borrow 95% of their home’s value, rates will hit 5.1%. https://www.standard.co.uk/business/nationwide-mortgage-rate-hike-budget-jeremy-hunt-chancellor-bank-of-england-b1141825.html
Purchasing a dream house could turn into a nightmare – go in with your eyes wide open. Once you’ve found a property you want to buy, you need to make sure you ask all the right questions – to the seller, their estate agent, and even neighbours or people in the local area who don’t have a vested interest in your buying decisions. Failure to do so could mean you’ll end up paying over the odds, or find that your dream home is actually a nightmare. Experts give their shortlist: https://www.telegraph.co.uk/money/property/buying-selling/28-questions-must-ask-buying-first-home-property/
A number of mortgage lenders are raising their costs again in a move which will “bring further tears to the eyes of the general public”. HSBC and Virgin Money are all increasing the cost of new deals this month. It follows a similar announcement by Santander and TSB and Coventry earlier in the week. Just yesterday Natwest also announced further increases to most of its fixed rate mortgage deals. https://uk.finance.yahoo.com/news/mortgage-rates-going-back-where-103744155.html?guccounter=1
Around 64% of advisers say they have seen a rise in customers choosing interest-only mortgages in the last year, a Mortgage Solutions poll has found. According to a Mortgage Solutions poll, approximately 46% of advisers surveyed said that they had seen a rise in customers opting for interest-only mortgages to some extent, with a further 18% saying they had seen an increase to a large extent. Almost 36% of advisers said that they had not seen an increase in customers going for interest-only mortgages. Interest-only mortgages allow borrowers to pay off just the interest on borrowing each month, as opposed to the capital, with the full amount paid back at the end of the term. This means monthly payments can be lower. UK Finance figures show that there were 702,000 pure interest-only homeowner mortgages outstanding at the end of 2022, which is 6.9% lower than 2021. However, with the introduction of the Mortgage Charter measures, which allows a customer to temporarily switch to interest-only payments for six months could lead to heightened interest. The cost of living crisis has also meant there have been more enquiries for this kind of product and the product is especially popular with buy-to-let landlords. https://www.mortgagesolutions.co.uk/news/2024/01/23/two-thirds-of-advisers-see-rise-in-interest-only-mortgages-poll-results/?utm_source=Mortgage+Solutions+subscribed&utm_campaign=8c5eff7f71-EMAIL_CAMPAIGN_8_9_2023_12_39_COPY_01&utm_medium=email&utm_term=0_747b260d73-8c5eff7f71-276721806
Over the past two days, challenger lenders like MPowered Mortgages and Gen H have introduced a fresh wave of rate reductions. Citing the recent dip in swap rates, MPowered said it is “taking the opportunity to pass the savings to you and your customers by lowering all of our 2-year fixed rates.” In light of this, along with Wednesday’s widely welcomed inflation announcement that saw inflation dip to 7.9%, brokers have been sharing their predictions as to where the market is headed, and if more rate reductions, particularly from the ‘big’ high street lenders, could be on the horizon. Read Expert Opinion: https://theintermediary.co.uk/2023/07/specialist-lenders-spearhead-rate-cuts-but-will-high-street-follow/
Mortgage borrowers are potentially missing out on better deals by choosing a product transfer without advice, brokers have said. Commenting on people going directly to their lender because of uncertainty in the market, Laura Bairstow, founder at The Mortgage Masters, said borrowers could be losing out on lower rates from alternative lenders. She added: “I have seen clients fix a rate when they are already struggling to meet their current repayments, leaving them financially vulnerable when they switch to the higher rate. Had they been given proper advice, those clients would have been made aware of alternative options open to them such as extending the term of their mortgage to keep repayments down. Advisers give their opinions: https://www.mortgagesolutions.co.uk/news/2023/07/24/brokers-warn-of-potential-problems-with-self-selected-product-transfers/?utm_source=Mortgage+Solutions+subscribed&utm_campaign=2d44ed93ca-EMAIL_CAMPAIGN_7_4_2023_11_57_COPY_24&utm_medium=email&utm_term=0_747b260d73-2d44ed93ca-276721806
Annual inflation rate in the UK remained at 6.7% in September, dividing expert opinion on whether the Bank of England will raise or maintain interest rates again in November. The latest consumer price inflation (CPI) data published by the Office for National Statistics (ONS) on Wednesday also showed a 6.1% rise in core inflation in the 12 months to September, down from 6.2% in August. “After last month’s fall, annual inflation was unchanged in September,” reported Grant Fitzner, chief economist at the Office for National Statistics. “Food and non-alcoholic drinks prices eased again across a range of items with the cost of household appliances and airfares also falling this month. These were offset by rising prices for motor fuels and the cost of hotel stays. Experts give their opinions: https://www.mpamag.com/uk/news/general/uk-inflation-stays-at-67/463493
A 99 per cent mortgage product for first time buyers has been launched by Yorkshire Building Society and Accord mortgages. The building society said its fee-free deal will enable first-time buyers across England, Scotland or Wales with a £5,000 deposit to purchase a property valued at up to £500,000. Under the deal, which is available to first-time buyers only, borrowers could take out a five-year fixed-rate mortgage at 5.99 per cent. Yorkshire Building Society director of mortgages, Ben Merritt, said research by the society found £5,000 is the amount that could shorten the time needed for first-time buyers to get mortgage-ready. He added that it could help to encourage a “level playing field for those who don’t have financial support from their families to fall back on”. We take the finance industries reactions: https://www.ftadviser.com/mortgages/2024/03/27/first-time-buyers-99-mortgage-with-5k-deposit-launched/?xnpe_tifc=4DENbIYpbIQuOfHj4uP_b9psafeWaeiWhFWAhoB9bMP8b9UDRG8.adJSbfh_4Io74knDOfoXxdbl4nTT&utm_source=exponea&utm_campaign=FTA%20-%20Lunchtime%20Bulletin%20-%20Newsletter%20-%2027.03.24&utm_medium=email
The popularity of long-term fixed rates will be dependent on pricing, early repayment charges and attitudes to affordability changes in light of Perenna securing its banking licence today, brokers have said. Perenna was launched in 2018 and looks to bring long-term fixed rates of 20 years or more to the UK mortgage market. It also has a different funding structure to most lenders as it uses covered bonds, which is a portfolio of loans issued by a bank then sold to a financial institution for resale. The lender secured its full banking licence today from the Prudential Regulation Authority and Financial Conduct Authority, noting that it would offer mortgages to those on its 5,000-strong waitlist first and then open to the public later this year. Long-term fixed rates are popular in the US and Europe but have not had the same read-across to the UK as short-term and variable rates are more common. Early repayment charges (ERC) and pricing have also been dissuasive factors to take-up. Mortgage Experts give their opinions: https://www.mortgagesolutions.co.uk/news/2023/09/07/brokers-mixed-on-long-term-fixed-rate-popularity-following-perenna-launch/
Hot on the heels of HSBC, Halifax has announced it is reducing its mortgage rates again on Wednesday 15 November. Following the news, one broker said some rates, based on the current direction of travel, could even start with a three before the year is out in December. https://www.birminghammail.co.uk/news/midlands-news/six-week-warning-anybody-mortgage-28103472
With the latest UK inflation data published showing an unexpected jump to 10.4% in Feb 2023 it gives the Bank Of Englands Monetary Committee food for thought in their looming meeting. Financial and Mortgage Advisers share their response to this unwelcomed news. https://ifamagazine.com/category/mortgage-and-property/
UK mortgage approvals slumped in September amid mounting signs of stress in the property market, according to official figures before the Bank of England’s next decision on interest rates on Thursday. Figures from the central bank showed net borrowing of mortgage debt decreased from £1.1bn in August to a net repayment of £900m in September – the lowest since April this year. Reflecting the impact of the sharpest rise in borrowing costs in decades, net remortgaging approvals collapsed to 20,600 – the lowest level since January 1999 – as more people stayed with their existing lender, or paid off their debts where they were able to do so. Experts give their opinions: https://www.theguardian.com/business/2023/oct/30/uk-mortgage-approvals-interest-rates-property-market
The latest move by Metro Bank will delight first-time buyers and homeowners looking to move as well as those looking to refinance. The current mortgage price war shows little sign of abating after Metro Bank became the latest lender to offer new deals yesterday with a headline rate of 4.99% for a 2-year fixed rate switch product up to 80% LTV. The move will delight prospective first-time buyers and homeowners looking to move as well as those looking to refinance and came hot on the heels of high street lenders NatWest and HSBC which had both announced rate cuts earlier in the week. Experts discuss: https://thenegotiator.co.uk/mortgage-price-wars-continue-as-more-lenders-slash-rates/
Coventry for Intermediaries has this morning announced new fixed mortgage rate rises across its product offering. For new borrowers, the society will be increasing fixed rates at 65% to 85% loan-to-value (LTV) throughout its residential range, along with 5-year fixes at 90% to 95% LTV with fee. 2- and 3-year fixed purchase rates at 90% LTV will also see an increase, along with a number of remortgage options. For existing borrowers, all residential fixed rates (excluding offset deals) from 65% to 85% LTV will see increases, along with 2-year deals from 90% to 95% LTV and 5-year deals at 95% LTV. In addition, for new borrowers looking to avail of the society’s buy-to-let range, there will be additional increases across the lender’s 2-year fixed remortgages, its 2-year fixed purchase rates with no fee, as well as its 5-year fixed rates. We asked brokers for their thoughts: https://theintermediary.co.uk/2024/02/coventry-introduces-fixed-rate-mortgage-rises/
Brokers have said they are skeptical of fintech lender Gen H's new in-house conveyancing service that promises to pass profits back to the customer. The more long in the tooth advice firms have read, and seen it all before it seems https://www.ftadviser.com/mortgages/2023/03/14/brokers-sceptial-of-lender-gen-h-s-conveyance-proposition/
Around 72 per cent of brokers said they have seen no change when it comes to lender innovation on housing energy efficiency, such as green mortgages, an exclusive Mortgage Solutions poll has revealed. According to a Mortgage Solutions poll, around 17 per cent said that they had seen some innovation from a few lenders and only 11 per cent said that had seen lots of innovation from a range of lenders. Energy efficiency has risen up the agenda partially due to rising energy bills’ impact on the cost of living as well as upcoming energy efficiency legislation that could mandate that rental properties have an EPC of C or higher by 2028. https://www.mortgagesolutions.co.uk/news/2023/08/04/nearly-three-quarters-of-brokers-have-not-seen-significant-green-product-innovation-in-last-year-poll-results/?utm_source=Mortgage+Solutions+subscribed&utm_campaign=66faf38d7d-EMAIL_CAMPAIGN_7_4_2023_11_57_COPY_26&utm_medium=email&utm_term=0_747b260d73-66faf38d7d-276721806
Barclays latest rate reductions will fire up the high street and is exciting stuff - experts give their opinions: https://www.ftadviser.com/mortgages/2023/11/20/barclays-rate-reduction-will-fire-up-the-high-street/
Expert views: Could less competition strip support from customers that fall outside of the "computer says no" model? In the last six months, the individual protection market has lost Canada Life, Aegon, and now AIG Life UK, leaving advisers concerned about the future of innovation. Advisers discuss: https://protectionreporter.co.uk/your-views-could-less-competition-strip-support-from-customers-that-fall-outside-of-the-computer-says-no-model.html
Homeowners can now have a mortgage up to the age of 75 with the country's biggest lender, Halifax. Halifax has increased its maximum working age from 70 to 75, for applicants wanting to pay off a home loan with their wages. The lender said it was upping its age limit to help older workers who needed a mortgage later in life. Financial experts give their opinions: https://www.thisismoney.co.uk/money/mortgageshome/article-12369193/Whats-age-limit-mortgage-Biggest-lender-increases-cap.html
With average mortgage rates not rising as sharply and the number of residential products rising above 5,000 again this week, PR platform Newspage asked brokers if there is a glimmer of light in the mortgage market. https://www.financialreporter.co.uk/is-there-a-glimmer-of-light-in-the-mortgage-market-brokers-react.html
Tomorrow’s King’s Speech, setting out the legislative agenda for the coming year, looks certain to include leasehold reform - and the mortgage industry appears to be unanimously in support. The housing minister, Rachel Maclean, has confirmed that a Bill to phase out some leaseholds in England and Wales will be covered in the King's Speech . She’s tweeted: “Plans to phase out leasehold and restore true home ownership confirmed today as part of the King’s Speech. We will restore true home ownership to millions of people and end the reign of rip-off freeholders and incompetent profiteering management companies.” https://www.introducertoday.co.uk/breaking-news/2023/11/kings-speech-this-week--leasehold-reform-backed-by-mortgage-bosses?source=newsticker
The Nationwide Building Society house price index showed that the monthly decrease was steeper than the 0.3% drop recorded in December. Annually, property prices were 1.1% higher than a year ago - top mortgage firms were asked for their opinions on this latest saga. https://www.mortgagesolutions.co.uk/news/2023/02/01/house-price-growth-slips-further-in-january-nationwide/
Mortgage brokers have expressed frustration at continued conditional selling in the housing market, with some reporting unfair practices by housing associations responsible for shared ownership schemes. Brokers have argued new rules are needed in relation to conditional selling to help better protect home buyers, read their views: https://www.ftadviser.com/mortgages/2023/05/03/brokers-call-for-new-rules-on-rampant-conditional-selling/
Lenders have been urged to focus their efforts on building relationships with brokers, ensuring that intermediaries do not spend interminable periods on hold, if they want to offer better support. This week Santander announced it was “simplifying” its broker support system by introducing a single number for intermediaries to call, a change it said was being made following feedback from brokers. However, brokers argued that rather than trimming back contact numbers, lenders should focus on speedy responses and building relationships with intermediaries, allowing issues to be resolved swiftly. https://www.mortgagesolutions.co.uk/news/2023/04/25/the-abcs-of-brokers-lender-communication-answer-the-phone-build-relationships-cancel-live-chat-%e2%80%92-analysis/
Michael Gove has hinted at a rethink over Government plans to ban gas boiler installations from 2035, saying the move will impose costs on households. The Housing Secretary has warned costly plans to tackle the climate crisis could spark a "backlash" as ministers come under pressure from the Tory right to relax existing pledges. Check the comments: https://www.express.co.uk/news/politics/1795271/michael-gove-gas-boiler-ban
Following the Halifax reporting earlier this week that house prices registered the first annual contraction in more than a decade in May, UK newswire, Newspage, asked property experts if a property market crash is on the cards. The views of 10 can be seen below. https://ifamagazine.com/article/are-we-heading-for-a-property-market-crash-experts-deliver-their-views/
After Christmas, Nationwide - the UK's biggest building society - has announced rate cuts on selected mortgages including some fixed-rate mortgages. Nationwide has finally taken the opportunity to cut most of its fixed rates from TOMORROW. After Christmas, Nationwide - the UK's biggest building society - has announced rate cuts on selected mortgages including some fixed-rate mortgages. Experts discuss: https://www.birminghammail.co.uk/news/cost-of-living/nationwide-announces-new-rules-account-28498630
From tomorrow, 1st August, Halifax is increasing the maximum working age using earned income to age 75. Newspage asked brokers what impact will this have on the mortgage market, whether the industry will see a surge in people remortgaging due to the rise in interest, and what the risks are of taking a mortgage to the age of 75. View expert's comments: https://www.financialreporter.co.uk/halifax-ups-maximum-age-to-75-for-mortgage-lending.html
April 2023 data from the HM Land Registry (HMLR) indicates that average UK house prices increased by 3.5% in the year to April 2023, down from 4.1% in the previous 12 months, and significantly below the recent peak annual inflation of 14.2% in July 2022. The average house price in the UK now stands at £286,000, a £9,000 increase from a year ago, but £7,000 lower than the peak recorded in September 2022. Experts comment: https://theintermediary.co.uk/2023/06/uk-house-price-growth-slowed-in-april-average-price-at-286000/
Interest in new-build is on the rise at the moment, brokers have suggested, with lenders needing to be more innovative in order to support new-build buyers. Prospects for new-build buyers appear to be improving, with both Halifax and Virgin Money announcing partnerships with Own New, aimed at helping purchasers with only a five per cent deposit. Brokers told Mortgage Solutions that further options to support new-build buyers were welcome, given the conclusion of the Help to Buy scheme, with many suggesting that interest in newly built homes is actually increasing currently. https://www.mortgagesolutions.co.uk/news/2024/02/27/more-options-needed-to-support-growing-new-build-interest-%E2%80%92-analysis/
Former Brexit secretary Sir David Davis among leading voices calling for Governor Andrew Bailey to cut interest rates to help businesses and mortgage payers. A former minister has called on the Bank of England to play its part in boosting Britain by slashing interest rates today. Sir David Davis, the former Brexit Secretary, urged the Bank’s Governor Andrew Bailey to cut the current 5.25 percent base rate to "help everyone from business owners to mortgage payers". https://www.express.co.uk/news/uk/1861844/bank-of-england-slash-interest-rates-david-davis
The housing market has slowed amid the mortgage crisis, with experts warning it is like a “ticking time bomb” before it crashes. This morning’s House Price Index from the Office for National Statistics (ONS) show average UK house prices increased 3.5 per cent in the 12 months to April 2023, but this was down from 4.1 per cent in March 2023. Experts give their opinions: https://www.cityam.com/housing-market-a-ticking-time-bomb-as-prices-slow-amid-mortgage-mayhem/
Housing Associations have come under fire from financial advisers who accuse them of alleged "conditional selling" on new properties and "potentially" lining their pockets with referral fees by insisting buyers use certain solicitors and mortgage brokers. Read their comments. https://theintermediary.co.uk/2023/05/brokers-slam-housing-associations-for-conditional-selling/#:~:text=Housing%20associations%20have%20come%20under,certain%20solicitors%20and%20mortgage%20brokers.
We reached out to property professionals via PR platform News Page to gauge the industry's reaction to the reintroduction of 100% mortgage products - will we see a surge of activity like during the stamp duty holiday, or thousands plunged into negative equity as house prices cool further? Read the opinions: https://www.propertyreporter.co.uk/what-effect-will-relaunching-zero-deposit-mortgages-have-on-the-housing-market.html
Annual house price growth returned to positive territory for first time in over a year in February, rising by 0.7% month on month, the latest Nationwide House Price Index has revealed. The annual rate of change returned to positive territory for first time since January 2023, with prices up 1.2% year on year. The average house price was £260,420, compared to a slightly lower figure of £257,656 in January. Robert Gardner, Nationwide’s chief economist, said: “UK house prices rose by 0.7% in February, after taking account of seasonal effects. Experts Give Their Opinions: https://theintermediary.co.uk/2024/03/house-prices-see-0-7-rise-in-february-nationwide/
According to Rightmove, the average asking price rose by £6,647 or 1.8% month-on-month, in May – the biggest rise of the year so far. Tim Bannister, Rightmove’s director of property science, said: “This month’s strong jump in new seller asking prices looks like a belated reaction and a sign of increasing confidence from sellers, as we’d usually see such a big monthly increase earlier in the spring season.” UK newswire, Newspage, asked property experts if it’s a buyers’ or sellers’ market. The experts views can be seen: https://ifamagazine.com/article/latest-rightmove-figures-show-the-average-asking-price-rose-by-1-8-in-may-views-from-property-experts/
A number of specialist mortgage lenders have pulled products as a result of market uncertainty, with experts warning that high street lenders may follow suit next week if swap rates continue to rise. The reaction by lenders is a result of the inflation data released yesterday for the month of April. See what the experts say: https://www.ftadviser.com/mortgages/2023/05/25/tidal-wave-of-uncertainty-as-lenders-pull-products/
The government’s ban on financial cold calling has been welcomed by financial advisers who say the move will help build trust in the financial industry. Prime minister Rishi Sunak announced today (May 3) an outright ban on all financial cold-calling in a bid to tackle fraud. We ask the advisers. https://www.ftadviser.com/your-industry/2023/05/03/govt-cold-calling-ban-will-build-trust-in-the-industry-say-advisers/#:~:text=The%20government's%20ban%20on%20financial,a%20bid%20to%20tackle%20fraud.
There are growing fears of yet another Bank of England base rate rise next month following the surprise inflation figure released by the government. The annual rate of inflation stayed stubbornly at 6.7 per cent according to official figures yesterday - the same rate as a month ago. There had been a prediction of a small fall. A significant drop in the inflation rate is tipped for next month when shifts in the energy price cap will be reflected in the data - however, this will be confirmed some days after the Bank of England’s next monetary policy committee decides on base rate. Experts Discuss: https://www.lettingagenttoday.co.uk/breaking-news/2023/10/rate-rise-fears-return-after-bad-news-inflation-figure?source=othernews
Newspage, asked brokers if they are seeing growing demand for longer-term mortgages due to affordability reasons and as people seek to mitigate higher mortgage rates. One said “30-40 year mortgage terms are becoming commonplace”, while another added that “35 has become the new 25”. See their full responses: https://www.financialreporter.co.uk/longer-mortgage-terms-becoming-commonplace-brokers-say.html
Rarely a day goes by at the moment without lenders announcing mortgage rate changes. Just this week, we have already seen new rates introduced across both residential and buy-to-let. Brokers admitted to Mortgage Solutions that the current speed of mortgage rate changes can be overwhelming, though this only serves to highlight the importance of independent advice. There were also splits on whether technology currently does a good enough job in helping brokers keep on top of rate developments. https://www.mortgagesolutions.co.uk/news/2024/01/11/brokers-admit-speed-of-mortgage-rate-changes-is-overwhelming-%e2%80%92-analysis/?utm_source=Mortgage+Solutions+subscribed&utm_campaign=4aa3248d6a-EMAIL_CAMPAIGN_9_14_2023_12_50_COPY_16&utm_medium=email&utm_term=0_747b260d73-4aa3248d6a-276721806
Barclays’s announcement of the first sub-5 per cent 2-year fixed remortgage product in months will “fire up the rest of the high street” say some mortgage advice experts. https://www.ftadviser.com/mortgages/2023/11/20/barclays-rate-reduction-will-fire-up-the-high-street/
Rates will be up to 0.25% more from Tuesday 30 April as the Cost of Living crisis continues to impact UK households nationwide. Santander has just announced a suite of rate increases for both fixed and tracker deals across their residential and Buy to Let products. Rates will be up to 0.25% more from Tuesday 30 April as the Cost of Living crisis continues to impact UK households nationwide. Experts react: https://www.birminghammail.co.uk/news/cost-of-living/santander-announces-sad-change-accounts-29077792?int_source=mantis_rec&int_medium=web&int_campaign=more_like_this
The high street bank has confirmed cuts from 0.04% to 0.11% and the launch of a new remortgage product up to 60% LTV from Thursday September 7. Experts react as follows: https://www.birminghammail.co.uk/news/midlands-news/santander-issues-24-hour-warning-27666005
Barclays will cut mortgage rates by up to 0.43% across its residential, buy-to-let purchase and remortgage ranges, with experts suggesting the move could spark a flurry of reductions from competitors as we head into 2024. The lending giant confirmed it had reviewed its offering against “market funding conditions” with changes to its mortgage rates set to come into effect tomorrow – Wednesday 20 December. Experts Discuss: https://www.yourmoney.com/mortgages/remortgage/barclays-back-with-a-bang-as-it-slashes-suite-of-mortgage-rates/
After more than a decade or low and steady rates there is a lot more at stake, we ask 12 mortgage brokers to go out on a limb and reveal what they'd do. Anyone taking out a mortgage at the moment will likely be pondering the same questions - how long to fix for? Should they fix at all? It is a decision that could save them - or cost them - thousands of pounds, depending on what they choose. Back in the days of predictable rock-bottom interest rates, it was a relatively easy decision to make - after all, every option was cheap. More than a decade of steady interest rates also lulled many into believing that mortgage rates were unlikely to change dramatically in the future. We asked 12 top financial advisers in the UK for their feelings: https://www.thisismoney.co.uk/money/mortgageshome/article-13126707/Should-fix-mortgage-tracker-ask-dozen-brokers-theyd-do.html
The media, the government and the Bank of England (BoE) have all come under fire by mortgage brokers for their role in contributing to the ongoing difficulties in the mortgage market. Recent weeks have seen stark jumps in the interest rates on offer from new products, with lenders regularly pulling their ranges and repricing as a result of rising swap rates. And while the media came in for criticism from advisers, there was far harsher judgements of the decisions made by both the government and the BoE. https://www.mortgagesolutions.co.uk/news/2023/06/30/press-government-bank-of-england-who-do-brokers-blame-for-mortgage-crisis-%E2%80%92-analysis/
Many advisers choose to offer their services for free and some do not even realise it. As Keith Richards, the former chief executive of the Personal Finance Society, who now heads up the Consumer Duty Alliance pro bono, has recently told FT Adviser, advisers give "millions of hours of free guidance every year, sometimes they just don't realise it". He had done some research into the topic after launching pro bono initiatives with advisers at the PFS himself. We spoke to five advisers and business consultants about why they provide pro bono work, what they get out of it and why they think every adviser should consider it. https://www.ftadviser.com/ftadviser-focus/2023/12/12/i-did-not-need-to-do-this-but-felt-it-was-the-right-thing-to-do/?page=1
Nationwide has reduced selected mortgage rates by up to 0.43 per cent across its New Business, Switcher, Additional Borrowing, Existing Customers Moving Home and Tracker product ranges. Advisers provide comment: https://www.introducertoday.co.uk/breaking-news/2023/11/nationwides-slashed-rates-means-price-war-goes-on-to-end-of-year
The ability for consumers to self-service their mortgage after taking initial advice is “baffling” and “flies in the face of regulatory rules”, according to Hudson Rose managing director, Graham Taylor. Following a reported increase in people undertaking products transfers directly, often with just a few clicks of an app, brokers have given their views on what the potential pitfalls of products transfers are. Experts give their opinions: https://www.ftadviser.com/mortgages/2023/07/25/ability-for-homeowners-to-self-service-mortgage-is-baffling-says-broker/
The number of mortgage deals available has surpassed 4,000 for the first time in six months according to a financial information website. Money Facts, which counts the number of mortgage products at the start of each month, said 4,341 deals were available on 1 February compared with 3,643 products at the start of January. Many mortgage deals vanished from the market last autumn, amid market turmoil in the days following the mini-budget. Mortgage Advice firm advisers give their opinions. https://www.cityam.com/mortgage-chaos-of-last-few-months-eases-as-available-deals-surpass-4000/?utm_source=dlvr.it&utm_medium=twitter
EXCLUSIVE: A finance expert has said you only have to look at the US to see how woefully behind the curve the Bank of England is in its battle with inflation. The scathing criticism comes as Consumer Prices Index (CPI) inflation was 6.7 percent in August, down from 6.8 percent in July, despite widespread expectations it could increase as rising oil prices fed into higher costs at forecourts. https://www.express.co.uk/finance/personalfinance/1814672/andrew-bailey-shambolic-performance
Ahead of this week’s Monetary Policy Committee meeting, UK newswire, Newspage, asked a selection of financial services experts whether they think the Bank of England should increase rates this week and how they believe it has handled the inflation crisis to date. See their views: https://londonlovesproperty.com/property-experts-warn-if-the-bank-of-england-raises-interest-rates-further-the-future-is-bleak/
New Bank of England figures have revealed an alarming surge in mortgage arrears which has triggered fears of a rise in repossessions. The value of outstanding mortgage balances with arrears is over 50 percent higher than it was a year ago. At the same time, the proportion of mortgages that are in arrears is at the highest level for more than seven years. The figures have triggered pleas to the Bank of England for an immediate cut in the base rate to help those struggling to keep a roof over their head. Financial experts Discuss: https://www.express.co.uk/finance/personalfinance/1876606/Mortgage-arrears-rise-home-repossessions
NatWest has followed Santander this morning with similar increases across the full range of residential and buy-let fixed rate deals, up to 0.22 per cent higher from Tuesday 30 April as the Cost of Living crisis continues across the country. They are also extending the range of High-Value mortgage options, especially for those with £2m or more borrowing requirements. Experts give their feelings: https://www.birminghammail.co.uk/news/cost-of-living/natwest-rolling-out-change-accounts-29077763
Barclays has just announced reductions to its Fixed Rate purchase deals, with some rates up to 0.39 per cent cheaper at the higher Loan to Value pricing. These rate changes are effective from tomorrow, Wednesday 8 May. Newspage asked mortgage brokers for their thoughts on this announcement from Barclays, and whether other lenders will follow suit. This was a common strategy early in January as lenders moved purchase and remortgage rates in different directions. https://uk.news.yahoo.com/barclays-announces-change-accounts-tomorrow-114431667.html?guccounter=1
Barclays has completed the acquisition of Kensington Mortgages, subject to regulatory approval. As part of the agreement, all of the specialist lender's employees will become part of the wider Barclays group, though Kensington will continue its day-to-day operations as usual. Reaction from brokers has been mixed, including one from our very own catwalk model. https://www.mpamag.com/uk/mortgage-types/residential/kensington-sells-to-barclays-to-build-on-expansion-plans/439524
House hunters relying on a mortgage will potentially have less purchasing power and less confidence as a result of Thursday’s base rate increase, according to property experts. As the Bank of England pushed up the base rate to 5%, the highest rate in nearly 15 years, in a bid to ease stubbornly high inflation, experts said that the housing market was seeing a shift towards more “realistic” prices. Experts give their opinions: https://www.independent.co.uk/money/what-does-the-bank-of-england-rate-hike-mean-for-the-housing-market-b2362374.html
Retirement is a time to sit back and take things easy, but life won't be so relaxing if you still have unpaid debts. The Daily Express interviews financial advisers from the UK's top firms to get their take on should you or shouldn't you consolidate your unsecured debts into your mortgage. https://www.express.co.uk/finance/personalfinance/279675/Repay-debts-for-a-relaxing-retirement
Mortgage brokers were baffled today by a series of price moves in both directions, including two of the UK’s ‘big six’ lenders raising some rates at the same time they lowered others. Santander and Coventry Building Society cut the interest rates on a number of fixed-rate products, while Accord increased its own rates. That may be a sign that lenders may have differing views of the future outlook for the Bank of England’s own interest rates. Experts Discuss: https://www.standard.co.uk/business/mortgage-lenders-interest-rates-borrowing-home-loan-property-house-bank-of-england-prices-b1147810.html
NatWest is increasing rates for existing borrowers from tomorrow: Switcher: Rate increase of up to 10bps on selected two and five-year deals; Buy to Let - switcher: Rate increase of 5bps on 75% LTV two-year deal with £995 product fee. We've got some reaction from experts via industry news agency Newspage... https://news.sky.com/story/mortgages-interest-rates-inflation-latest-money-blog-sky-news-live-13040934
Barclays' acquisition of Kensington Mortgages could reinforce its existing proposition and signal the start of High Street lenders diversifying into new markets. Financial Advisers and Property Experts give their opinion on this latest shrinkage of lender choice for the UK. https://www.mortgagesolutions.co.uk/news/2023/03/02/barclays-buyout-will-make-kensington-a-lender-to-be-reckoned-with-broker-reaction/
Lenders “throwing borrowers under the bus” despite reporting bumper profits, say brokers. Despite posting bumper profits, a recent trend that has seen lenders remove products and reprice at short notice, has led some brokers to criticise institutions for “throwing borrowers under the bus.” Newspage asked brokers if the practice of lenders pulling products with minimal notice was aligned with the principles of Consumer Duty. Reaction: https://theintermediary.co.uk/2024/02/lenders-throwing-borrowers-under-the-bus-despite-reporting-bumper-profits-say-brokers/#:~:text=Lenders%20%E2%80%9Cthrowing%20borrowers%20under%20the,reporting%20bumper%20profits%2C%20say%20brokers&text=Despite%20posting%20bumper%20profits%2C%20a,throwing%20borrowers%20under%20the%20bus.%E2%80%9D
Santander has announced it is upping mortgage rates for the second time this week, as lenders continue to increase interest on their home loans. From tomorrow, the bank is increasing a number of its fixed rate deals aimed at home buyers and those remortgaging by up to 26 basis points. Homeowners have until the end of today to secure Santander's 4.4 per cent five-year fixed rate deal aimed at those remortgaging with at least 40 per cent equity. It is currently the second lowest five-year fixed rate on the market, but from tomorrow this could rise by up to 26 basis points. https://www.thisismoney.co.uk/money/mortgageshome/article-13375077/amp/Major-mortgage-lender-ups-rates-second-time-week-big-rivals-hike-too.html
Inflation stood at 8.7% in April 2023, down from 10.1% in March and a recent peak of 11.1% in October 2022, the latest Office for National Statistics (ONS) figures show. Read the industries reaction: https://theintermediary.co.uk/2023/05/inflation-slowed-to-8-7-in-april-2023/
Counter to market expectations, the Consumer Prices Index (CPI) measure of inflation rose slightly in December. However, industry experts don’t see this as a portent of doom just yet. Although, if swap rates start to rise, that could change. Inflation rose to four per cent in the year to December 2023, a surprise increase from 3.9 per cent in November, according to the Office for National Statistics. This is the first rise since February 2023, and comes above market forecasts of 3.8 per cent. Experts give their opinion: https://www.mortgagesolutions.co.uk/news/2024/01/17/inflation-rise-blip-that-wont-reverse-rate-drops-but-beware-swap-rises-analysis/?utm_source=Mortgage+Solutions+subscribed&utm_campaign=e92cab34e0-EMAIL_CAMPAIGN_9_14_2023_12_50_COPY_29&utm_medium=email&utm_term=0_747b260d73-e92cab34e0-276721806
Al technology is, without doubt, the future we are heading towards. However, what that future looks like is still unclear. How will Al be used? Will it replace human labour? When will Al be ready for mainstream use? These are all questions that have come to the forefront of people's minds in recent weeks as news of Chat GPT dominates headlines and swarms social media. The UK's top advisers are asked for their opinions. https://ifamagazine.com/article/supplement-or-substitute-how-do-advisers-view-chatgpt-potential-impact-on-financial-services/
Property experts have warned that prospective home buyers relying on a mortgage could face diminished purchasing power and confidence after Thursday's base rate increase. The Bank of England's decision to elevate the base rate to 5%, the highest in almost 15 years, aimed at reducing persistent high inflation, has prompted experts to predict a shift towards more "realistic" property prices. Experts give their opinions: https://www.manchestereveningnews.co.uk/news/cost-of-living/what-bank-england-interest-rate-27179675
HSBC among the lenders lifting the cost of home loans the day after it reported record annual profit. House hunters and mortgage brokers have reacted angrily to news that a string of big-name lenders are hiking the cost of home loans, even with Bank of England base rates expected to fall later this year. The moves from the likes of HSBC, Santander and TSB have been described as a “handbrake turn” and “March madness” for hard-hit consumers, already struggling with the cost-of-living crisis and an economy that has tipped into recession. Experts discuss: https://www.standard.co.uk/business/mortgage-rate-rises-branded-march-madness-by-brokers-as-banks-hike-home-loan-costs-b1140877.html
Bank rates up to 0.22 per cent higher from Tuesday 30 April as the Cost of Living crisis continues across the country. NatWest has followed Santander this morning with similar increases across the full range of residential and buy-let fixed rate deals, up to 0.22 per cent higher from Tuesday 30 April as the Cost of Living crisis continues across the country. They are also extending the range of High-Value mortgage options, especially for those with £2m or more borrowing requirements. Experts Discuss: https://www.birminghammail.co.uk/news/cost-of-living/natwest-rolling-out-change-accounts-29077763
NatWest says the changes - announced on Monday - are for new and existing customers, taking its best deals below 4% in line with its competitors. Mortgage Experts give their opinions: https://www.birminghammail.co.uk/news/cost-of-living/natwest-announces-new-rules-mortgage-28452544
Chancellor Jeremy Hunt has reportedly scrapped the idea of a 99 per cent mortgage scheme after lenders raised concerns. First reported in The Telegraph, it has been suggested that lenders warned the Treasury this would lead to a rise in defaults. Speculation of a 99 per cent mortgage for first-time buyers has been circulating since January, when it was rumoured that Hunt would introduce the scheme at the Spring Budget on 6 March. This would require buyers to put down a one per cent deposit and have the 99 per cent mortgage loan guaranteed by the government. https://www.mortgagesolutions.co.uk/news/2024/03/01/hunt-drops-99-per-cent-mortgage-idea-just-days-before-budget-reports/?utm_source=Mortgage+Solutions+subscribed&utm_campaign=df4b36e98f-EMAIL_CAMPAIGN_9_5_2023_14_28_COPY_15&utm_medium=email&utm_term=0_747b260d73-df4b36e98f-276721806
The latest GDP data shows that the economy is estimated to have grown by 0.3% in January 2023 after falling by 0.5% in December 2022 - financial and property analysts give their feedback on how this could play out in the next Monetary Committee Meeting of the Bank of England. https://www.financialreporter.co.uk/will-the-latest-gdp-data-influence-next-weeks-rate-rise-decision.html
Skipton Building Society has introduced a range of low rate two-year fixes aimed at helping existing borrowers with payment difficulties, in a move one broker has called "unprecedented". Mortgage Experts comment on this: https://www.ftadviser.com/mortgages/2023/10/10/skipton-launches-3-35-mortgage-to-support-borrowers/#:~:text=Skipton%20Building%20Society%20has%20introduced,broker%20has%20called%20%22unprecedented%22.
The UK's monthly gross domestic product (GDP) showed no movement in February, missing the 0.1% month-on-month growth expected by analysts following a 0.4% progress recorded in January. The Office for National Statistics (ONS). however, noted that, looking at the broader picture, the UK's GDP grew by 0 .1% in the three months to February 2023. Top Mortgage Brokers React to this Story. https://www.mpamag.com/uk/news/general/uk-economy-flatlines-in-february/442670
Technology has become an increasingly prevalent subject within the mortgage market, spurred on by the restrictions of the pandemic, which made many of us more reliant on innovative communication tools. With the gradual expansion of fintech lenders into the mortgage market, some brokers have heralded this alternative option, while others are dismissive. View top firms' comments. https://www.mpamag.com/uk/mortgage-industry/technology/how-do-high-street-and-fintech-lenders-compare/443902
The intermediary market has been a ‘cottage industry’ for too long, with consolidation among advice firms inevitable and necessary, brokers have argued. Recent months have seen a host of consolidation deals taking place across the mortgage industry. In August for example the Tenet Group agreed to sell off aspects of its business to Openwork and LSL Property Group, while in recent weeks Fintel snapped up VouchedFor and AKG in a package worth £9m. There have also been forecasts that consolidation among networks is likely to continue from high profile figures within the industry. And brokers told Mortgage Solutions that the challenges of operating in the current market have not only pushed more firms towards selling up of late, but also are likely to result in further deals taking place in the months and years ahead. https://www.mortgagesolutions.co.uk/news/2023/11/17/consolidation-inevitable-for-cottage-industry-mortgage-brokers-%e2%80%92-analysis/?utm_source=Mortgage+Solutions+subscribed&utm_campaign=dd39476a40-EMAIL_CAMPAIGN_8_9_2023_12_39_COPY_03&utm_medium=email&utm_term=0_747b260d73-dd39476a40-276721806
The ‘big six’ lenders joined the ongoing rate war, following a number of others such as Halifax and HSBC in reducing mortgage prices this year. Financial Advisers discuss this UK mortage lender battle: https://www.standard.co.uk/business/mortgage-interest-rates-prices-bank-of-england-house-property-home-loan-borrowing-barclays-santander-lenders-b1131165.html
