Catch up on Mortgage Strategy’s most popular stories this week. UK homeowners are being warned about an impending remortgage nightmare and Ami calls for more notice on product withdrawals. Read more below:
Remortgage nightmare looms for UK homeowners – Hargreaves
According to research conducted by Hargreaves Lansdown, millions of UK homeowners may face a remortgage nightmare. A survey of 2,000 individuals conducted by Opinium for Hargreaves Lansdown in May 2023 revealed that two out of five mortgage holders state that their payments have not increased despite rising interest rates. This situation arises because a significant number of homeowners are currently on fixed-rate deals.
Ami calls for more notice on product withdrawals
The IMLA and AMI have responded to the sudden withdrawal of mortgage products. AMI’s CEO, Robert Sinclair, acknowledges market volatility but raises concerns about insufficient pipeline monitoring.
Market Watch: Cool heads required
Mortgage mayhem continues, reflecting the fact that the Bank of England came to the party too late, yet again states Andrew Montlake.
UK housing policy is ‘bonkers’: Family Building Society
Family Building Society’s CEO, Mark Bogard, has criticized the continuous turnover of UK housing ministers over the past 13 years, describing it as a “bonkers” situation that has contributed to a failed housing policy. Bogard highlights that years of inconsistent initiatives have hindered the development of a cohesive and integrated housing policy in the country.
Halifax data shows first annual house price fall for 11 years
According to Halifax’s latest house price index, house prices in the UK have experienced a 1% decline over the past year, marking the first annual decrease in 11 years. The data from the country’s largest mortgage lender reveals that the average house price remained unchanged in May compared to April, resulting in an overall annual decline of 1%, following a slight 0.1% increase the previous month.
Mortgage broker market will increase in 2023
Specialist property lender Octane Capital has released new research indicating that despite a challenging end to 2022, the UK mortgage broker market has grown by 9.6% compared to the previous year. Furthermore, a projected increase of 2.6% is expected for 2023. Octane analyzed the market’s size based on revenue and assessed its performance over the past decade, while also providing a forecast for the market’s potential growth by the end of this year.
Coventry’s new fixed-rate options reflect market conditions
Coventry for Intermediaries is extending its selection of new business products for residential and buy-to-let mortgages. The expanded range includes two, three, and five-year fixed-rate options, as well as tracker products. Notably, existing customers can benefit from preferential rates on product transfers and further advances, which are lower compared to the rates offered in the new business range.
House sales to remain ‘price sensitive’ over 2023 into 2024: Savills
Savills has highlighted that recent mortgage rate increases will put added pressure on buyers, with house sales expected to remain price-sensitive in 2023 and into 2024. In their June residential research update, the estate agent states that the combination of higher-than-anticipated inflation, the possibility of increased Bank of England interest rates, and lenders adjusting home loan prices will lead to a tightening of house prices.
House building falling at steepest rate since May 2020
According to the latest UK Construction PMI data, there has been a modest improvement in overall construction output in the UK. This growth is primarily attributed to increased activity in commercial building and civil engineering sectors. However, the report highlights that house building continues to be the poorest-performing category, with output declining at the sharpest rate seen in the past three years.
Fleet returns with two and five-year fixes up to 75% LTV
Following the withdrawal of fixed-rate products in the previous month, Fleet Mortgages has introduced a selection of two- and five-year fixed-rate mortgages across its three main ranges: standard, limited company, and HMO/MUB (House in Multiple Occupation/Multi-Unit Block). For borrowers with up to 75% loan-to-value (LTV), the specialist buy-to-let lender offers a two-year fixed-rate mortgage at a rate of 5.69% for standard and limited company borrowers, and 5.79% for HMO/MUB borrowers. These two-year fixes include a 2% fee.
