Catch up on Mortgage Strategy’s most popular stories this week. The effects of the collapse of SVB are not all negative and fallout from the Spring Budget 2023. Read more below:
Collapse of Silicon Valley Bank sees swap rates fall by 0.4%
The collapse of Silicon Valley Bank (SVB) has led to a fall in swap rates, which could be good news for borrowers. Mortgage rates had been decreasing gradually since October, but this slowed down in the last couple of weeks, and some lenders have increased rates for new borrowers.
Budget 2023: What the industry wants from the Chancellor
Ahead of the Spring Budget Mortgage Strategy analysed what the property industry expected from Chancellor Jeremy Hunt to address the chronic shortage of homes across the country.
Budget 2023 reaction: Chancellor ‘cold shoulders’ housing sector
With all the anticipation leading into the Spring Budget, the property industry was sorely disappointed as it argues it has been given the “cold shoulder” by the Chancellor.
UK house prices to drop by 10%: OBR
UK house prices are expected to drop by 10% from Q4 2022, according to the Office of Budgetary Responsibility (OBR). This is an increase of one percentage point from their previous forecast in November.
NatWest increases overpayment allowance to 20%
NatWest now permits new and current mortgage customers to overpay by up to 20% without facing an early repayment charge (ERC). The bank has raised the overpayment allowance from 10%, and it will automatically renew on the product draw down’s yearly anniversary.
Budget 2023: OBR rules out threat of UK recession this year
The Office for Budget Responsibility (OBR) stated that the UK “did not enter a technical recession” in the past year. Chancellor Jeremy Hunt had announced on March 15th that various measures taken by the government and changing international factors helped to prevent a recession.
Knowledge Bank launches Consumer Duty tool
Knowledge Bank launched software to assist lenders and brokers in complying with the upcoming Consumer Duty regulations. The tool identifies vulnerable borrowers early and highlights underserved areas in lending policy and the broader market, according to the criteria platform.
Landlords switch to cash buys amid high rates: Hamptons
High mortgage rates have led landlords to switch to cash, meaning that 59% of UK buy-to-let purchases are mortgage-free so far this year, the highest share in six years and up from 53% in 2022, data from Hamptons shows.
Owning a home still cheaper than renting: Halifax
According to the latest Halifax Owning vs Renting Review, homeowners are better off by nearly £500 per year compared to renters. The analysis compared the housing costs of first-time buyers (FTB) with a mortgage on a three-bed home to the average monthly rent for a similar property.
Gen H combines mortgage and legal services for FTBs in new product range
Gen H launched a product range aimed at first-time buyers (FTBs) on March 15. The bundle combined the lender’s mortgage and legal services to provide FTBs access to a conveyancing service, exclusive mortgage rates on fixed-rate products for LTVs up to 95%, and free valuations. The Gen H Legal team provided the conveyancing service, while customers could access reduced mortgage rates on two-, three-, and five-year fixed rate products.
