Catch up on Mortgage Strategy’s most popular stories this week. Signs of stability in mortgage rates and House prices jump 1.8% to £372,894 record. Read more below:
Signs of stability in mortgage rates – Rightmove
Rightmove has released the most recent average mortgage rates in the UK for the week ending on May 23rd. The average rate for 85% loan-to-value (LTV) five-year fixed loans remains unchanged at 4.56% for this week. To provide context, this is in comparison to a rate of 2.94% recorded a year ago.
Leeds BS offers new first-time buyer mortgage
Leeds Building Society has added a new 95% LTV mortgage to its first-time buyer range. This is available as a two-year fixed rate deal at 5.69% and comes with a £250 cash back and a free standard valuation. There is no completion fee.
House prices jump 1.8% to £372,894 record: Rightmove
According to data from Rightmove, the average price of a home surged by 1.8% in May, reaching a new record of £372,894 compared to the previous month. This substantial increase is the largest of the year thus far, surpassing the typical May rise of 1%. It also represents a significant uptick from the 0.2% rise observed in April. The data indicates a delayed response to the higher-than-expected level of market activity since the beginning of the year.
Accord Mortgages relaxes interest-only lending
Accord Mortgages has relaxed its interest-only mortgage criteria. Read more to find the changes the Yorkshire Building Society-owned broker-only lender has put in place.
Inflation falls but BoE rate rises may continue
The inflation rate in the UK is now below double digits – falling to 8.7% in April from 10.1% in March. A welcome drop but below market expectation. What does the industry make of the latest figure?
Fleet, Lendco and others withdraw products ahead of price fears
Fleet Mortgages, along with Lendco and other lenders, has decided to withdraw certain mortgage products as the market starts to anticipate higher mortgage rates. In a recent communication to brokers, Fleet Mortgages announced the temporary withdrawal of all its fixed-price mortgages, effective from midday on Thursday, May 25th, 2023.
NatWest buys back £1.3bn Govt stake
NatWest has reached an agreement to repurchase £1.26 billion worth of its shares from the government, which had previously provided a £45.8 billion bailout to the bank 15 years ago. As a result, the taxpayer’s ownership stake in the bank has decreased from 41.4% to 38.6%, a step forward in the bank’s journey towards full private ownership, according to the Treasury.
Nationwide launches 0% green additional loan product
Nationwide Building Society has announced a reduction in the interest rate for its green additional borrowing product, bringing it down to zero percent. Starting from June 1st, this loan will be available to approximately 5,000 households with a Nationwide mortgage. It allows borrowers to access funds ranging from £5,000 to £15,000, with a loan-to-value ratio of up to 90%. The loan terms are flexible, spanning either two or five years.
HSBC UK Intermediary Mortgages senior corporate account manager Tracie Burton offers some sage advice on staying safe ahead of events season
Homeowners could save £200 by remortgaging after just six months
The decline in mortgage rates has created an opportunity for borrowers who recently locked in their mortgage rates, following the Budget uncertainty, to potentially save money by refinancing once again. According to research conducted by Dashly, homeowners may be able to save over £200 per month, even after factoring in early repayment charges, by capitalizing on current competitive deals available in the market.
