More borrowers take advantage of lower rates
The number of new remortgages with equity withdrawn rose by 8.3 per cent in June compared to the same month a year prior, according to data collected by UK Finance. In total there were 16,880 remortgages with extra borrowing completed and 15,230 without extra borrowing in June, the latter coming in 24 per cent lower than in June last year, however.
The number of mortgages for first-time buyers fell by 1.5 per cent in the same time frame, dropping to 32,760, with the total borrowed by this group coming to £5.6bn. Looking at homemovers, borrowers took out 31,000 mortgages in June, equating to £7bn of borrowing. Furthermore, there were 5,300 new buy-to-let purchases completed, 3.6 per cent fewer than in June 2018 and there were 12,500 BTL remortgages in the same time frame, representing a drop of 0.8 per cent.
Anderson Harris director Adrian Anderson says: “Many borrowers are taking on extra borrowing when they come to remortgage, with the average increase being just shy of £60,000. “This is a clear sign that homeowners are staying put and improving or extending, rather than paying the hefty cost of moving home.
15/08/2019 | source: https://www.mortgagestrategy.co.uk/more-borrowers-take-advantage-of-lower-rates/
'Mortgage prisoners' trapped on expensive home loans to be freed under new proposals
Thousands of "Mortgage prisoners" who have been trapped in expensive deals for years could soon be able to find a cheaper loan following proposals from the City watchdog. Affordability checks which have meant borrowers were unable to switch deals could be transformed under proposals from the Financial Conduct Authority (FCA). After the financial crisis lenders tightened up their criteria, meaning that some borrowers no longer passed. As interest rates have fallen to near-record lows, these borrowers have been forced to stay on expensive repayments.
The FCA estimates that, in 2016, there were around 30,000 of these so-called mortgage prisoners. A further 120,000 consumers who have mortgages with lenders that are not authorised by the FCA could also benefit from switching.
26/03/2019 | source: https://www.independent.co.uk/news/business/news/mortgage-prisoners-trapped-expensive-home-loans-freed-fca-a8841006.html
Lenders cut mortgage rates to give a kick-start to 2019
As Brexit takes its toll on the property market, there is some good news for borrowers.
First-time buyers and homeowners remortgaging their properties have been given some good news at the start of the year as a number of lenders have cut their rates in an increasingly competitive market. Last week HSBC dropped rates on 31 different mortgages while the market-leading product for a 10-year fixed-rate loan also went down. The cuts come at a time when the outlook for property sales is at the lowest level for two decades. A report from the Royal Institution of Chartered Surveyors (Rics) said that the looming threat of Brexit had dragged down the UK property market further, with prices falling at the fastest rate in six years.
HSBC said it was reducing fixed and tracker rates. A two-year fixed rate for a loan 95% of the value of the home was cut by 0.1% to 2.99%. A five-year fixed rate was also down 0.1% to 2.29% on a home with 90% loan to value. Both of these moves will help first-time buyers.
20/01/2019 | source: https://www.theguardian.com/money/2019/jan/20/brexit-gloom-property-mortgage-rates-cut
First-time buyers with small deposits get the pick of the deals
There’s good news for first-time buyers with small deposits as mortgage interest rates in this market have plummeted to a record low while choices have widened.
Data released today has revealed two-year fixed-rate deals for borrowers with 5% deposits who therefore need a 95% loan-to-value (LTV) mortgage are averaging at 3.54% – a sharp decline on the 6.52% typical rate 10 years ago. Meanwhile, homebuyers with a 10% deposit, who require a loan of 90% of their property’s value, are benefiting from having the pick of the fixed-rate bunch. According to Moneyfacts.co.uk, which has compiled the data, the number of fixed-rate deals for these borrowers is at its highest on record with more than 650 deals available, compared to just over 100 in December 2008. Interest rates on 90% LTV mortgages have also plunged from 6.5% in 2008 to 2.7% today.
10/12/2018 | source: https://www.whatmortgage.co.uk/news/first-time-buyers/first-time-buyers-small-deposits-get-pick-deals/
No-deal Brexit: why it could create the perfect buying opportunity for property. Britain crashing out of the European Union without a deal could keep mortgages cheap and create a “buying opportunity”, according to industry experts. With less than six months to go until we leave the EU, the Government is yet to negotiate an agreement with the other 27 member states, leaving the financial industry sounding warning sirens over what a no-deal Brexit could mean. The property market has already slowed dramatically as the country edges closer to the brink and this could get worse. But those with property overseas could actually find themselves with more money in their pockets.
19/10/2018 | source: https://www.telegraph.co.uk/personal-banking/mortgages/no-deal-brexit-could-create-perfect-buying-opportunity-property/
There's been a lot of negative news circulating about Britain's property market, with the governor of the Bank of England himself suggesting that no deal on Brexit could cause a radical drop in the value of homes. While this warning is unlikely to be welcomed by those already on the property ladder, the prospect of prices coming down might be a relief to the thousands of would-be first-time buyers who still aspire to own their own homes. Whether this property armageddon materialises we will have to wait and see - but in the meantime, there was some good news for those buying with smaller deposits. Research from Moneyfacts suggests that despite the 0.25 per cent increase to the base rate in August, average two and five-year fixed rates for those with a 5 per cent deposit are now at their lowest ever.
24/09/2018 | source: https://www.thisismoney.co.uk/money/mortgageshome/article-1687576/What-mortgage-rates
Increase in mortgages granted for borrowers with small deposits! - The number of borrowers with small deposits who are being approved for mortgages is slowly creeping up, according to the latest data from e.surv. Statistics from the chartered surveyor’s Mortgage Monitor for June revealed first-time buyers were among the ‘main beneficiaries’ of the 66,435 loans approved during the month. “Mortgage approval rates are up both compared to last month and the same point a year ago, suggesting that lenders are offering deals which are tempting more borrowers to the market.”
17/07/2018 | source: https://www.whatmortgage.co.uk/news/increase-mortgages-granted-borrowers-small-deposits/
Today (16 April 2018) is Mortgage Freedom Day – the day on which the average UK homeowner will have earned enough to cover their mortgage payments for the whole year. But some homeowners are freer than others – are you among them? However, one of the most significant factors in mortgage freedom isn’t due to location, salary or mortgage size, but to the kind of deal you happen to be on. Broadly, the higher your interest repayments, the more you’ll end up paying (and even worse, the more of your money disappears into the ether rather than actually being invested in your home). So how easy is it to remortgage?
The proportion of homeowners’ income being swallowed up by mortgage payments is now one of the smallest since the mid-1990s, according to the Halifax. It said typical mortgage payments accounted for less than a third (29%) of homeowners’ disposable income in the last three months of 2017 – down from almost half (47%) during the same period in 2007. This figure is also “comfortably below” the long-term average of 35% for the period between 1983 and 2017.
17/03/2018 | source: https://www.theguardian.com/money/2018/mar/17/mortgage-payments-most-affordable-home-loans-halifax
While the Bank of England kept the base rate on hold at 0.5% earlier this month, it warned that interest rates were likely to rise more quickly than originally expected. This could lead to some nervousness among those looking for a mortgage later this year.
Traditional wisdom has been that you have to wait until you are near the end of your current deal before securing another. But some lenders will give borrowers who are remortgaging as much as six months to take up a rate they have been offered in principle. This means that if you are coming out of a deal in September, you can start searching for a new one as soon as March.
27/02/2012 | source: https://www.theguardian.com/money/2018/feb/27/interest-rate-rise-new-mortgage-deal-lenders