Daily updates!

 

19/06/23

 

Mortgage affordability can now be an issue due to higher rates and to help borrowers more lenders are allowing longer mortgage terms to age 75 and beyond, where the client has a pension in place or intends to continue working. They are also allowing some or all of the mortgage to be taken on interest interest-only basis to keep the contractual monthly payment down.

 

16/06/23

 

Mortgage affordability can now be an issue due to higher rates and to help borrowers more lenders are allowing longer mortgage terms to age 75 and beyond, where the client has a pension in place or intends to continue working. They are also allowing some or all of the mortgage to be taken on interest interest-only basis to keep the contractual monthly payment down.

 

15/06/23

The US Federal Reserve which is their equivalent of The Bank Of England yesterday decided to hold interest rates, as US inflation has fallen to 4%.

UK inflation figures are released next week and then the rate setters meet on Thursday to decide whether to increase our base rate from 4.5%. Analysts are predicting at least a 0.25% increase with many suggesting this could be 0.5%, as inflation here is currently much higher.

 

14/06/23

 

Despite the obvious inflationary pressures there are still some positives to be taken from the current state of the UK economy. The number of people employed in the UK hit a record 33.1 million between February and April which means more people can afford to buy houses and pay mortgages. The sectors that showed the biggest gains were health and social care and hospitality.

In the BTL market Landbay has released a product range with a more relaxed stress test so that higher loans can be achieved by investors.

 

13/06/23

 

To allow more transaction to happen Nationwide has increased its lending limits on non-new build flats to 95% from 90%. This is particularly helpful in the leasehold dominated London market.

In terms of rate we have new products today from Natwest, Melton Building Society, The Mortgage Works, Clydesdale and Landbay.

 

12/06/23

 

At Start Financial Services we don’t just work with residential and BTL mortgages we also have access to specialist partner firms who can help with bridging loans, development finance and commercial mortgages. This market is going from strength to strength with commercial lenders like Glenhawk reporting their strongest ever months for new lending.

 

09/06/23

 

Despite economic headwinds towards the end of the year the size of the mortgage broker market grew by 9.6% in 2022 in terms of revenue generated and it is predicted to grow again by 2.6% this year.

The sector generated £1.8 billion in revenue last year which is also an increase of 104.5% over the last decade.

The days of getting a mortgage from your bank are over

 

08/06/23

 

There is lots of action in the mortgage market today with new products hitting the shelves from Accord, Metro, Foundation and Interbay. We also have 18 exclusive rates that are not available elsewhere.

 

06/06/23

 

UK Finance confirmed that almost a fifth of first-time buyers are prepared to take out a mortgage lasting over 35 years, with a record 19% of first-timers doing so in March. To put this into context this compares to just 2% in March 2005 when these figures were first collated and just 9% in March last year. This change in borrowing requirements is due to increased house prices, cost of living challenges and higher interest rates.

 

05/06/23

 

Broker searches for mortgage products via Twenty7tec increased by 7.9% in May when compared to April. Searches for remortgages increased by 11.1%, whilst search for first-time buyer and BTL products both increased by 7.7%. This increased activity should translate into increased mortgage lending in coming months.

Demand in the buy-to-let market remains strong with the average rent in England rising 1% in May to £1,111, up from £1,103 in April. Average void periods remained flat with London retaining the lowest figure at 12 days.

 

02/06/23

 

One of our fintech lenders M-Powered is now using Artificial Intelligence to automate and speed up the mortgage application process, which allows much quicker underwriting decision to be made, which reduces the time to mortgage offer. We also have lenders who can produce instant offers for some clients where a desktop valuation is carried out and income is verified through HMRC

 

01/06/23

 

Buy to let lenders are innovating to attract new business with Foundation Home Loans releasing new products for purchase and remortgage which are available up to 80% of the property value, so investors with a lower deposit or less equity can still buy or re-finance.

We have also seen a number of changes to stress rates on BTL products so borrowers can achieve higher loans than earlier in the year.

 

31/05/23

 

According to Zoopla house sales agreed have reached their highest point this year. Despite demand being weaker than a year ago, it is up 11% on the five-year average, which is good news for the housing market. London, Scotland and the North-East have been the highest performing regions over the last four weeks.

We have multiple rate changes in another busy day in the mortgage market, with new deals being released by Accord, Paragon, HSBC, Skipton and Nottingham and we currently have 19 exclusive products available.

 

30/05/23

The Furness Building Society is releasing interest-only products that require only a 30% deposit to allow borrowers to keep their monthly costs down, if they have a suitable repayment strategy in place for the capital balance.

With regards to rates the higher-than-expected inflation figure has fuelled expectations for a further base rate rise and the cost of funding for fixed rates has increased. As a result we have new products from Nationwide, Coventry, Leeds, M-Powered, Bank Of Ireland and Foundation

26/05/23

 

The cost of funding for fixed rates is very volatile at the moment as everyone tries to guess what the Bank Of England will do next, after the latest set of inflation data. As a result we have new products from 6 different lenders today - Platform, Leek, Nottingham, Nationwide, Furness and M-Powered. 

 

25/05/23

 

Accord and Halifax are making changes to their lending policy to allow more people to take interest-only mortgages. They are reducing the income and deposit required to qualify. This can help to keep monthly payments down with the idea that the capital is paid off by other means, such as overpayments or sale of the property.

This can really work for some people so please make sure that buyers and sellers talk to us, so that the mortgage that they take is tailored to fit their personal and financial position.

 

24/05/23

We have some good news on inflation at last with it dropping to 8.7% in April, down from 10.1% in March. This can be attributed mainly to energy costs stabilising, but food and non-alcoholic drink prices continue to soar, and the April reduction may not be significant enough to avoid a further base rate rise in June.

The International Monetary Fund has upgraded its forecast for the UK economy this year. It previously predicted a contraction of 0.3%, but now expects it to expand by 0.4% in 2023 as a result of stronger wage growth, fiscal support, the levelling off of global energy prices and supply chains returning to normal after the pandemic.

 

23/05/23

 

Rightmove has reported that the average price of a UK home jumped by 1.8% to a new record of £372,894 in May when compared to April, in a delayed response to higher than expected market activity. This is the highest monthly lift of the year so far. They also confirmed that the discount from the final asking price to an agreed sale price has steadied at an average of 3.1%, which is in line with normal market levels, and reflects home-mover confidence in the outlook for the market.

There has been plenty of activity in the mortgage market and we have new products being released today by Santander, Generation Home, West One and Platform.

 

22/05/23

 

Another major lender has improved their affordability calculation to allow higher mortgages to be achieved. Borrowers taking a five-year fixed rate with the Halifax can now potentially borrow more when buying or re-mortgaging. We are pushing to book more grade “A” mortgage appointments with new vendors and buyers before they second view (when they first register to buy ideally), and we need to make these clients aware that by talking to a Start broker they could borrow much more than they would be offered elsewhere. We have access to over 200 lenders who all treat affordability differently and we look at them all to find them the most money. This could get them an extra bedroom, or a house as opposed to a flat.

 

19/05/23

 

The Governor of the Bank Of England Andrew Bailey expects inflation to start to drop soon stating that there are “good reasons to expect inflation to fall sharply over the coming months” The fall in energy prices will be a big factor in this – let’s hope the April inflation figures, which are released next week, start to reflect his prediction.

In the mortgage market Accord are making affordability changes to allow clients to borrow more. They are allowing households earning over £60,000 to borrow up to 5.5 times their total income with only a 10% deposit. The income previously needed to be £70,000 to qualify

 

18/05/23

 

There continues to be volatility in the mortgage market with rates moving up and down and products being withdrawn at short notice. Today we have new deals from Darlington, Marsden, Barclays, Newbury and Metro who are making moderate changes and also from fintech lender Generation Home who are slashing their rates by up to 0.65%! All group clients who are looking to buy or re-finance a property should talk to a Star broker to make sure they get the best deal because even advice they had yesterday is now out of date and if they don’t see what we have to offer, then they risk missing out on the best deal.

 

15/05/23

 

To support the push for greener homes Nationwide is offering extra borrowing of up to £15,000 at 0% for two or five years for existing residential mortgage holders, to fund non-structural, energy efficient improvements. These can include solar panels, heat pumps , window & boiler upgrades, cavity wall insulation, loft insulation and electric charging points. With the UK’s 29 million homes producing around 16% of the country’s emissions, improving the efficiency of housing can be a major factor in the commitment to hit net zero by 2050.

 

12/05/23

 

Lenders are working hard to assist buyers who are struggling with their deposit. The Skipton have their new 100% product and Platform have re-entered the market at 95% too.

 

11/05/23

 

The pound has been gathering strength, hitting its highest level against the dollar since April 2022 and is currently trading at $1.26. Investment banks including Goldman Sachs and Citigroup believe that this recovery will continue after stronger than expected gross domestic product, manufacturing and jobs data.

The mortgage market awaits the base rate decision at noon today with a 0.25% increase looking the most likely outcome. Platform, Vida, Natwest, Santander, Foundation and Accord have all made changes to their products in advance of the announcement, with the direction of travel mainly upwards.

 

10/05/23

 

There is some BIG news in the mortgage market!

100% lending is back for first-time buyers aged 21 or over courtesy of The Skipton Building Society.

THE KEY PONTS:

Clients will have to demonstrate a track record of paying household bills and rent over a period of 12 months in the last 18 months. Their new mortgage payment must be equal to or less than the average of their last 6 months rental payments.
Up to 4 people can apply together.
This is available on new-build houses but not flats.
The maximum loan is £600,000.

 

09/05/23

 

The Bank Of England meet on Thursday to decide what to do next with the base rate. The common view is that they will increase it by a further 0.25% to 4.5% to combat inflation. I will keep you posted.

I expect lenders to increase their prices in anticipation of this so if you have clients who are keen on property then they should get their mortgage application in now, to ensure they secure a deal.

 

05/05/23

 

The number of mortgage approvals rose significantly in March to 52,000 from 44,100 in February, which indicates that confidence is improving in the housing market. The value of approvals also increased from £9.6 billion in February to £11.4 billion in March. Despite net lending having declined each month over the last seven months the fact that new approvals are now on the up bodes well for future housing market activity.

 

04/05/23

 

English rents increased by 1.2% in April to hit an average of £1103. The London average saw the biggest monthly jump so far in 2023 with a rise of 2.3% to £1897, which is 11.4% higher than a year ago. The average void period in England inched up from 18 to 19 days last month but is unchanged over the last year.

In the mortgage market a number of lenders have made small price adjustments – some up and some down, but specialist residential and BTL lender Foundation Home Loans has slashed its rates by up to 0.7% in order to attract borrowers that do not fit with high street lenders.

 

03/05/23

 

Some good news coming in on house prices with Nationwide reporting a 0.5% increase in April after seven consecutive months of falls, which suggests the market is stabilising. Comparison site GetAgent.co.uk has also found that the average time taken to sell a home has fallen by 44 days in the last 12 months. In England and Wales it has taken an average of 250 days compared to 294 in the previous 12 months.

In the mortgage market lenders continue to make changes to attract more business with Kensington re-launching its 95% range and they will consider some adverse credit and also self-employed clients with only one years accounts.

 

02/05/23

 

Lenders continue to make changes to try to attract more mortgage business. Nationwide has increased its loan to income ratio for self-employed clients to 4.49 times so a client earning £100,000 can borrow £449,000. This was previously 4 times.

We also have lenders who only require one years accounts in order to lend to those people who run their own business.

 

28/04/23

 

In a time where it seems that a war is being waged on BTL landlords, lenders are offering a glimmer of hope. Birmingham Midshires, one of the largest lenders in the space, has made significant reductions to its rental calculations so that investors can now borrow what they need to allow more deals will work, particularly in the London market.

 

27/04/23

 

There continues to be a great deal of activity in the mortgage market with new rates hitting the shelves today from Landbay, Kent Reliance, Accord, and Precise. With so many changes it is key that all borrowers talk to a Start broker to ensure they receive accurate and up-to date advice. If they have already spoken to a different broker, even as recently as yesterday, then the quotes they have could be out-of-date so they should review them with a Start broker today. When they are taking on their biggest financial commitment, they need to make sure they get it right.

 

26/04/23

 

The credit outlook for Britain’s economy has been upgraded by S+P Global to ‘stable’ from ‘negative’, which reverses the rating it applied after the mini-budget last September. The ratings agency also reaffirmed its AA rating on UK debt. This vote of confidence provides further evidence that the country is turning a corner.

 

25/04/23

 

Legal & General has confirmed a spike in market activity from first-time buyers. Broker searches for mortgage products for this buyer type jumped by 22% from February to March on its SmartrFit platform. The overall number of searches was also higher in March than January and February and other popular enquiry terms were Visa, HMO and EPC. This indicates a positive trend in activity but there were also increased searches for clients with missed mortgage payments as the recent rate rises, stubborn inflation and cost-of-living struggles weigh more heavily on some mortgage holders.

New rates are hitting the shelves today from Newcastle, Skipton and Loughborough so please make sure all borrowers talk to a Start broker to make sure they receive accurate and up-to-date advice.

 

24/04/23

 

Lenders continue to adjust criteria to help borrowers. Leeds Building Society has increased the maximum loan sizes it will allow as property prices increase. They will now lend up to £500,000 with a 5% deposit, £600,000 with a 10% deposit and £1,000,000 with a 15% deposit. The Furness Building Society has re-entered the 95% space to help borrowers with a lower deposit.

 

21/04/23

 

A number of lenders are making rate reductions today with Natwest shaving off up to 0.21%, Accord dropping by up to 0.25% and Zephry making cuts of up to 0.4%. We also have 8 exclusive deals on offer which are not available through other brokers.

 

20/04/23

 

Santander is working hard to help borrowers to achieve higher loans on residential and BTL products by making criteria changes. On the residential side they are now considering a higher % of secondary income like commission and bonus when calculating affordability and on the BTL side they have dropped their stress rates so higher loans can be achieved.

We also have new products coming to market today from Vida, Leeds, Newbury, Nottingham and Tipton & Coseley. Please make sure all borrowers talk to a Start broker to ensure they have access to the whole UK mortgage market.

 

19/04/23

 

nflation slowed to 10.1% in March, down from 10.4% in February. This is higher than the 9.8% that economists expected and the major contributing factors are the upwards pressure from energy and also from food and non-alcoholic beverages which were measured at 19.2%.

I am seeing a lot of sales coming out where the buyer has the mortgage in place from a fall-through. This may have had some credibility earlier in the year where clients had deals in place from before the mini-budget, but with rates coming down recently the chances of them having a better rate than they can get now is unlikely. Please educate your buyers.

 

14/04/23

 

Construction output in February rose by 2.4%, following a fall of 1.7% in January, and at £15.6 billion is at the highest recorded level since records began in 2010. The rise was driven by increases in private housing repair and maintenance (4.5%) and new work (1.1%).

In the mortgage market Nationwide has made cuts of up to 0.3% across its range and new products land today from Halifax, Coventry and Leeds. Book all borrowers in to see a broker today so that they get up-to-date and accurate advice.

 

13/04/23

The Skipton is looking to help people who are unable to raise the deposit required to buy a house due to the constraints of renting. The Times reported that the mutual is looking to launch a mortgage product which will take the borrowers historical rental record into account and remove the need for a deposit. Could this be a return to 100% lending? I will keep you posted.

In the meantime, we have access to a wide range of lenders who require only a 5% deposit. If you are talking to clients who only have this amount to put down then please book them in to see a Start broker. A number of the specialist lenders have 5% products and other broker firms will not have access to them so they need to talk to us to ensure that they get the best deal.

 

12/04/23

 

We are waiting for some very important data on the economy this week when the growth readout for February will show if it is continuing to show resilience in the face of higher inflation and the cost-of-living crisis. Experts expect growth of 0.1% after a stronger than expected expansion of 0.3% in January. I will keep you posted with developments.


In the mortgage market we have new rates hitting the shelves from Nationwide, Leeds, Skipton, Furness and Virgin, who has released a market leading five-year fixed rate at 3.79%. Please make sure that all borrowers get the opportunity to access the best deals by talking to a Start broker.

 

11/04/23

 

The International Monetary Fund have said that they think that interest rates could fall again significantly once high inflation has passed. We are hoping for some positive data on falling inflation soon.

New rates have been launched by BM Solutions, Halifax, Santander, Clydesdale, Leeds and Nottingham. Make sure all borrowers talk to one of our brokers if they want to get the best deal.

 

06/04/23

 

Some positive news coming in on the economy with Sterling hitting a ten-month high of $1.25 against the dollar and also gaining against the Euro. Sterling has gained over twenty percent since it dropped to $1.03 in the wake of the mini-budget.

In the BTL mortgage market lenders are trying hard to stimulate the market with Accord dropping their stress rates by up to 1% to help investors to borrow more. In the residential space Santander have dropped their rates and now have a market leading five-year fixed rate at 3.94%

Make sure you talk to a Start broker to ensure you get the best deal.


05/04/23

 

Silvana Tenreyro, who is a member of the Monetary Policy Committee that meet to set the base rate, this week suggested that it may need to come down earlier and faster than has been predicted, in order to avoid a significant inflation undershoot. This would be very good news for mortgage rates which would also come down further. She pointed out that global supply chain issues which were born out of Covid have started to unwind and oil and gas prices have dropped which should push down inflation, which will lead the way for the base rate to come back down.

Did you know that we have access to equity release lenders who can lend to people irrespective of their age?

 

04/03/23 

 

New mortgage rates are hitting the shelves today from Natwest, West Bromwich, Furness and Landbay.

Did you know that we deal with a number of private banks alongside the high street lenders you will be familiar with such as Halifax, Barclays and Natwest?

 

03/03/23

 

The UK economy is showing resilience and revised figures from the Office Of National Statistics show that it actually grew by 0.1% in the final quarter of 2022 as we avoided a recession. It was previously thought that the economy had failed to grow at all in this period.

 

31/03/23

 

We have a number of new products aimed at helping first-time buyers and those with lower deposits. Accord has dropped it’s 95% first-time buyer rates by up to 0.64%, Leeds Building Society has introduced two new 95% products and Metro Bank has introduced new 90% deals.

In order to give our brokers the best chance of converting your leads into sign-ups the timing of the referral is key. We need to talk to your clients as soon as they register to buy or to sell. It is very competitive out there and if you leave it any later then they could make their financial arrangements elsewhere and we could lose the income and the control of the transaction, when they move forward with their sale or purchase.


30/03/23

The Bank Of England confirmed that the number of mortgage approvals rose month-on-month from January to February for the first time since August 2022. Prior to this they had fallen five months in a row and the 43,536 approvals in February, for a total lending value of £9.7 billion, show that the mortgage market is bouncing back following the ill effects of soaring rates after the mini-budget. These increased approvals should translate into more purchase and remortgage completions as we move further into 2023.

When you are progressing a house sale if a mortgage is involved then the quicker the offer is produced then the quicker the sale can move forward. Due to the quality of our back-office team and advances in technology we have lenders who can produce offers in record times. A Start broker submitted a mortgage application on Monday this week and received the mortgage offer less than 24 hours later. The valuation was done on a desktop basis and the underwriting carried out using automated systems, which link up with live HMRC data. If you want to make sure your exchanges happen as quickly as possible then make sure that all borrowers work with a Start broker.

 

29/03/23

 

In more good news in the ‘Cladding Crisis’ the Secretary Of State For Levelling Up Michael Gove has said he will apply a “vice-like grip to…nether regions” of developers who fail to sign cladding remediation contracts for buildings over 11 metres that were built or refurbished in the last 30 years. 43 developers have already signed contracts.

Meanwhile some lenders are also now supporting applications on properties with cladding over 11 metres even where remediation works have not yet started, or are part-way through, as Governmental legislation should protect leaseholders from bearing the cost.

If you have clients looking to buy or sell properties with cladding, please make sure they are referred to a Start broker so we can advise them on the best course of action.

 

28/03/23

 

There are lots of new rates being launched today with HSBC making cuts across its entire residential and BTL ranges and new products from Foundation Home Loans, Landbay and Newbury.

Did you know that we have access to software which is updated constantly and makes sure the brokers can always quote up-to-date rates to clients?

“I highly recommend that you talk to one of our brokers. They work with over 200 lenders who are constantly revising their rates. They have access to a system which is updated real-time and links all these products together. This means they can give you accurate and up-to-date advice to ensure that you always end up with the most suitable mortgage.”

 

27/03/23

 

The rental market continues to perform well with The Office For National Statistics confirming that UK private rents increased by 4.7% in the 12 months to February. This figure is a 0.3% increase from January and represents the largest annual percentage change since this set of statistics began in 2016. All areas in the UK showed increases with London coming in at 4.6%.

Did you know that we have BTL mortgage products that are available for first-time landlords and also first-time buyers? If you are talking to potential investors who have not yet bought their first BTL property, then please refer them to a Start broker and we can show them how they can create and build their portfolio.

 

24/03/23

 

The base rate increased by 0.25% yesterday and there has been lots of lender activity since. Some are re-pricing upwards but the bigger lenders, who rely less on the cost of funding, are holding firm and even cutting rates. Nationwide is one and has reduced it's rates by up to 0.45% and launched a five-year fixed rate at just 3.94%.

In these times of rate volatility did you know we can reserve a product with a lender for 90 days? If your clients are just starting their search today we can lock them in to a rate so they know exactly what they will pay when they find a property. This will also give them an extra incentive to find a property before their rate expires.

 

23/02/23

The US Federal Reserve pushed up their base rate by 0.25% yesterday which will put further pressure on the Bank Of England to raise our base rate when they meet today. I will keep you posted as to any developments and I think a 0.25% increase is on the cards.
 
The cost of funding has started to increase in anticipation of this move so fixed rate prices will follow suite. It is key that agency staff close down any sales offers ASAP ensuring all buyers and sellers are working with our broker team. We will make sure mortgage applications are submitted before rates increase. If there is a surprise and the base rate is held and mortgage rates fall again then we can switch them onto a cheaper deal.
 

22/03/23

 

The UK inflation rate has made a surprising jump to 10.4% in February after a three month stretch of declines. This is an increase from 10.1% in January. The Bank Of England meet tomorrow to decide what to do next with the base rate and this could influence them to increase it further.

Did you know that we have access to lenders who can still lend to clients even if they have adverse credit? The recent cost of living crisis has meant that more people have missed payments on mortgages, loans and credit cards. If you have clients who find themselves in this position, then please book them in with a Start broker and we will look to find them a suitable mortgage.

 

21/03/23 

 

After the recent fluctuations in the cost of funding we have new products today from Santander, Newbury, Skipton, Monmouthshire, Paragon and Virgin. One of the highlights is a five-year fixed rate that is being offered by Santander at 3.99%.

 

20/03/23

 

We have a very big week ahead with the Federal Reserve meeting on Wednesday and the Bank Of England on Thursday to determine the next move for their respective base rates in the US and the UK. Inflation data comes out on Wednesday, and this could influence the Bank Of England decision as could the action that the FED decide to take. They will also be looking at the issues that have faced Silicon Valley Bank and Credit Suisse which some have attributed to higher interest-rates. I will keep you fully updated on what happens as this could have a large influence on current and future mortgage rates.


17/03/23

 

There are lots of new mortgage products being launched today by Foundation, Hinckley & Rugby, Nottingham, M-Powered, TSB and Hodge. With the recent cuts to the cost of funding the direction of travel on the new rates is mainly downwards.

Did you know that alongside providing expert whole of market advice we also have the best back-office team in the business, supporting us and making sure we get mortgage offers out as quickly as possible?

“I highly recommend you work with Start Financial Services. They will find you the best mortgage product and they have a fantastic admin team. You will give a dedicated point of contact following the submission of your application and they will chase all the parties involved to ensure you get a mortgage offer in record time. Other brokers do not have this level of support and if you go direct to a lender you could spend hours trying to navigate call-centres to get through to your adviser.”

 

16/02/23

 

The Chancellor delivered a relatively upbeat budget yesterday and is confident that we will avoid recession in 2023 and that the inflation rate will fall to 2.9% by the final quarter of the year. His statement was delivered against a back-drop of improving market sentiment and as a result the cost of funding for fixed rates has dropped by around half a percent for two-year and five-year money over the last week. Some lenders had started to increase their fixed rates, but I expect this trend now to reverse and the cost of fixed products to come down again.


15/03/23

 

Research from Coventry Building Society suggests that England faces a housing shortage of at least 600,000 homes due to population growth vastly outpacing housebuilding. The area with the biggest deficit is London with a shortfall of 147,352. It will be interesting to see if the chancellor lays out any plans to address this issue in the budget today. Whilst these numbers are bad news for those lookin​g to buy or rent a new home this lack of supply will help to underpin sale and rental prices.

 

14/03/23

 

Lenders continue to relax criteria to attract new business. Vida Homeloans, one of our specialist providers, has increased its maximum income multiples to six times salary and relaxed its property criteria so it now has no restriction on the number of floors in a block of flats it will lend on. It will also consider flats above or near to pubs, bars and petrol stations.

UK economic data coming in from S&P Global shows that construction work rose at its fastest rate in nine months in February, ending the previous two months of decline. It also confirmed that overall business expectations for the year ahead have improved from the thirty-one month low in December with 46% of the panel anticipating a rise in construction this year, whilst only 13% expect a decline. 

In other news the BTL lending market is now offering more options to investors with product choice at its highest level since July 2022.

 

The BTL market is recovering and lenders continue to innovate. Clydesdale has removed its minimum income and minimum rental cover requirements to help borrowers achieve higher loans based on overall affordability. Precise has also re-launched a refurbishment product which allows you to buy a property which is not suitable for letting on a short-term rate, carry out the work and then switch to a traditional long term mortgage product and let the property out.

 

13/03/23

 

There has been plenty of movement in the mortgage market with new rates hitting the shelves from Clydesdale, Barclays, Accord and Suffolk. With so many changes every day we really need to talk to all group borrowers to ensure they have had accurate and up-to-date advice.

“I highly recommend you have a conversation with one of our brokers. I appreciate you have had advice from a broker already, but with rates changing on an almost hourly basis the best product for you could have changed and when you are taking out your largest financial commitment, you really need to make sure you get it right.”


10/03/23

 

The UK economy rebounded in January with GDP ( which is a measure of a countries commercial size and health) increasing by 0.3%, which is higher than the 0.1% expected by analysts. The chancellor Jeremy Hunt said the UK economy had proved “more resilient than many expected”. This positive news sets the scene for a vital few weeks with the budget, the release of the latest set of inflation data and the next Bank Of England meeting all coming soon.

 

09/03/23

 

Lots of movement in the mortgage market with new rates being launched today by Kent Reliance, Foundation, Leeds Building Society and Nottingham Building Society.

Did you know that we can work with any UK lender that will accept business from brokers and there are over 200 that we can go to?

I highly recommend you talk to one of our brokers. They have access to the whole UK mortgage market. They don’t just work with the high street lenders like Halifax, Nationwide and Natwest they also have access to private bank such as Handlesbanken, Coutts and Investec. These lenders will tailor the mortgage product to fit your personal and financial needs. Everybody should have access to this bespoke financial advice.

 

08/03/23

 

UK economic data coming in from S&P Global shows that construction work rose at its fastest rate in nine months in February, ending the previous two months of decline. It also confirmed that overall business expectations for the year ahead have improved from the thirty-one month low in December with 46% of the panel anticipating a rise in construction this year, whilst only 13% expect a decline.


07/03/23

 

 Lenders continue to relax criteria to attract new business. Vida Homeloans, one of our specialist providers, has increased its maximum income multiples to six times salary and relaxed its property criteria so it now has no restriction on the number of floors in a block of flats it will lend on. It will also consider flats above or near to pubs, bars and petrol stations.

In other news the BTL lending market is now offering more options to investors with product choice at its highest level since July 2022.

 

06/03/23

 

We have had lots of movement in the mortgage market with new products from Hodge, Generation Home, Accord, TSB, Nationwide, Nottingham, Marsden and Clydesdale. Today is a great time to talk to one of our brokers as they will guide your clients through all these changes and make sure they end up with the best product.

To support borrowers and help them to buy in the face of increasing house prices, Market Harborough is offering a multi-generation mortgage range which allow groups of families and friends to jointly buy a property. Up to four applicants are accepted, with all their incomes being considered and they can borrow up to the age of 85. Borrowers can also choose whether they want to be on the deeds of the property or not.

 


03/03/23

 

The volume of mortgage applications from first-time buyers rose 18% month-on-month in January, resulting in the most noticeable rise since September 2022. £4 billion worth of mortgage applications were made by those looking to buy their first home in the month up from £3.5 billion in December.

We currently have an exclusive 95% LTV product with Leek Building Society which is also available on new-build properties. The lender also allows the builder to offer a 5% incentive, which should help some of our buyers.

 

02/03/23

 

M-Powered mortgages has changed its affordability model which now allows client to borrow up to 20% more than they could previously, which can help to increase their buying power!

With regards to rates The Mortgage Lender has made cuts to its BTL products of up to 0.4%, but HSBC has made some increases to its fixed rate ranges. It seems rates will remain at around the level they are now in the short-term until we see what the next set of inflation data brings.

 

01/03/23

An action packed 24 hours in the mortgage market. Barclays are making reductions across their entire residential and BTL product ranges and TSB are also making cuts to their residential and BTL deals of up to 1%!

We also now have an exclusive 90% LTV residential three-year fixed rate with Nottingham Building Society at 4.95%. If group clients are looking to buy or re-finance a property and do not talk to a Start broker then they could miss out on the best deal.

 

28/02/23

 

We have new residential and BTL products from Skipton with cuts of up to 0.23%, with specialist BTL lender Zephyr also making reductions of up to 0.3% to their rates.

To help borrowers to achieve higher loans Santander has changed its affordability calculation for BTL properties that are to be retained in the background. This makes it easier for them to be considered self-financing and, therefore, not factored in to what the client can borrow for their residential purchase or remortgage.


27/02/23

 

New and reduced mortgage rates are being released today by Clydesdale, Darlington and Nottingham.

In the wider UK economy consumer confidence hit its highest level in February since April 2022. Economists are pointing to the fact that we have so far avoided a recession as a factor and also the sentiment that inflation seems to have peaked.

 

24/02/23

 

Natwest is making cuts of up to 0.31% across its residential and BTL ranges and Aldermore is reducing its fixed rates by up to 1.34%, again for both residential and BTL borrowers.

The cost of funding for fixed rates has stabilised after being on a downward trajectory and it looks like mortgage products could stay around the level they are at now in the short-term. We should see further drops when there is more clarity on exactly when inflation will come down more sharply, which in turn should motivate the Bank Of England to stop increasing the base rate and even look to bring it down.

 

23/02/23

 

Lots of action again yesterday with 7 lenders releasing new rates – TMW, HSBC, Metro, Leek, Vernon, Newcastle and Newbury. With so many changes any group clients looking to buy or re-finance a property need to talk to a Start broker, because any advice they have had elsewhere will already be out of date. 

 

22/02/23

 

Lots of movement yesterday with Coventry dropping the rates on its entire product range and Virgin making a number of changes, including reductions of up to 1.5% on some of its BTL product transfer deals.

In other news the number of BTL loans offered to landlords has bounced back since the calamitous mini-budget. Increased BTL rates, tougher stress tests and more restrictive criteria as a result in November meant that 19% of BTL borrowers were unable to find a lender. In the last month, however, due to lower rates, stress tests and relaxed criteria only 10% of enquiries were deemed unaffordable, so more borrowers can now find the BTL mortgage that they need.

 

21/02/23

 

Another busy 24 hours in the mortgage market with Santander making cuts of up to 0.5% across its residential and BTL ranges and it is also now offering a residential five-year fixed rate below 4% at 3.99%!

Suffolk Building Society has made some changes to make it easier for landlords and ex-pats to borrow. They will now lend to first-time buyer ex-pats who are working and living abroad and want to buy a rental property in the UK, without having owned a property before. For expats returning to the UK and looking for a residential mortgage they will now lend to them from day one as opposed to them having to be back in the country for two years, which was their previous requirement.


20/02/23

 

There have been more rate reductions with Foundation Home Loans dropping the cost of its residential and BTL deals by up to 1.8% and Leeds launching more keenly priced two-year fixed deals. We also have new mortgage products from Coutts, Zephyr, Nottingham and Paragon.

Data just in from Paragon suggests that the proportion of landlords experiencing tenants in rental arrears has fallen to its lowest level since 2017. This is encouraging given the cost of living demands that tenants are experiencing and when you combine this with the fact that rents are also increasing, it should make BTL more attractive to potential investors.

 

17/02/23

 

Some positive news on rates with Platform set to launch a five-year fixed deal at just 3.75% on Monday! I expect the larger lenders to follow suit and drop their rates further. Natwest has already made cuts of up to 0.2% on its range of products.

In other news the FTSE 100 smashed through the 8,000 level for the first time this week due to record profits and improved investor sentiment as it seems that inflation may have peaked. The FTSE 100 is an index consisting of the shares of the 100 biggest companies by market capitalisation on the London Stock Exchange, so this data is really encouraging.

 

16/02/23

 

 Nationwide has now joined the rate war by reducing its deals by up to 0.70% and launching a sub-4% five-year fixed product at 3.99%!

Santander has increased its maximum income multiple to 5.5 times for sole or joint incomes of over £100,000, for clients who are borrowing 85% of the property value or less. This will allow some clients to borrow more.

 

15/02/23

 

UK inflation fell to 10.1% in January down from 10.5% in December. Economists expected the January number to be 10.3% so prices across the economy did not rise as quickly as expected. Does this mean the Bank Of England will now hold off on further base rate increases?

In the mortgage market Barclays has made cuts to its residential and BTL deals of up to 0.44%, Accord has reduced its BTL rates by up to 0.24% and Halifax has introduced a ten-year fixed rate at 3.99%.

14/02//23

 

The recently launched fintech lender M-Powered has joined the rate war by dropping its three and ten-year fixed rates by up to 0.7%.

Recent data from Hamptons also confirms that rents show no sign of cooling with prices in January up 8.3% on a year ago. This was the sixth strongest month for rental growth since the agent began its monthly lettings index in 2014. BTL lenders have also started to lower their stress tests and increase the amount they will lend and this, when combined with increasing rents, can allow investors to buy new BTL properties and re-finance their existing portfolios.

 

13/02/23

 

There has been plenty of action in the mortgage market. Clydesdale has re-launched it’s 95% product range aimed at newly qualified professionals and The Mortgage Lender has dropped its residential and BTL rates by up to 0.66%. TSB and Coventry have also re-priced downwards.

With regards to the Bank Of England Base rate, one of the members of the Monetary Policy Committee, Silvana Tenreyro, thinks that the current rate of 4% is too high. She also thinks that inflation will drop quickly over the coming months stating that “the fall in inflation is pretty much guaranteed”. Can this sentiment spread throughout the committee members and now lead to the base rate coming down?

 

10/02/23

 

Lenders continue to look to reward borrowers with energy efficient homes with Halifax confirming that it will pay £250 cash-back to clients who purchase or remortgage a property with an A or B rating on the EPC. They have also improved their affordability model by allowing those borrowing less than 75%, taking a five year fixed rate or remortgaging without taking extra funds to borrow up to 9% more than they could previously.

In terms of rates M-Powered has made cuts of up to 0.31% on its residential range and Bluestone has also reduced its residential deals by up to 0.70%.

 

09/02/23

 

There has been more good news on rates with Hampshire Trust making reductions on its BTL products of up to 1.3%, Newcastle dropping its residential large loan deals by up to 0.62% and Virgin Money joining HSBC by pricing its 5 year fixed offers under 4% and they now start at 3.99%!

In other news we have a new housing minister Rachel Maclean - our sixth within the space of a year! She takes her place in the department of Levelling Up, Housing and Communities after Rishi Sunak's latest cabinet re-shuffle. Hopefully she can add some stability and innovative thinking to the role to support the housing sector.

 

08/02/23

 

After the raft of positivity surrounding HSBC's launch of a 5 year-fix under 4% yesterday, the rare war continues to gathers pace, with Nationwide cutting first-time buyer and remortgage rates by up to 0.75% and Foundation reducing residential and BTL deals by up to 0.95%.

We also have access to a new lender called Tandem from today. They focus on specialist, residential mortgages and are committed to rewarding clients with greener homes. More details will follow soon.

 

07/02/23

 

I am pleased to report that we now have a 5-year fixed rate starting with a 3!

HSBC are the first mainstream lender to dip below this level with a 5-year fixed rate since the mini-budget and offer a rate of 3.99% which is available up to 60% of the property value for remortgage customers.

This is a very positive move and should open the floodgates for more sub 4% fixed rates.

 

06/02/23

 

There has been a flurry of activity in the mortgage market with new reduced 90% rates from Leeds Building Society and new products from Platform, West Bromwich Building Society ad Keystone.

 

03/02/23

 

The Bank Of England raised the base rate by 0.5% to 4% yesterday. This was the 10th consecutive rise and it is now at its highest level for 15 years. The cost of variable products linked to the base rate will increase. There was, however, some good news with regards to SWAP rates which fund fixed rates. They dropped significantly with 2 year money now available at 3.74% and 5 year money at 3.25%. This suggests that the markets feel we are at or are approaching the top of the base rate cycle and paves the way for lower fixed rates.

 

02/02/23

 

The mortgage price war continues to hot up with Virgin Money releasing a residential ten-year fixed rate at 3.99%, Aldermore bringing out limited edition reduced residential and BTL rates and Teachers Building Society launching a one-year variable mortgage at 3.99%! There are products to suit every type of appetite, whether you are looking for long term stability or a riskier short-term option which gives you the chance to take advantage of potentially lower fixed rates in a years time.

In the US the Federal Reserve raised the base rate by 0.25% yesterday. Is this a sign of what is going to come today from the Bank Of England?

 

01/02/23

 

New rates have been released today by HSBC with reductions across the entire range which includes both fixed and tracker rates available up to 90% LTV.

The Bank Of England meet tomorrow to decide what to do with the UK base rate next.

 

31/01/23

 

The mortgage price war continues as lenders fight for new business! In the residential arena Natwest have come down by up to 0.24% and in the BTL space Landbay have slashed their deals by up 0.6%. The top ten lenders in the residential markets average two-year rates have fallen from a peak of 5.90% in November to 4.67% today, while five-year rates have dipped even further, to 4.32% from 5.67%.

Good news is also coming in from Knight Frank regarding the Prime Central London market with increased buyer activity. The number of prospective buyers registering in the first three weeks this year was 6% higher than in 2020, during the so called ‘Boris Bounce’, that followed thew 2019 general election result. This shows that the market has started the year much more strongly than expected.

 

30/01/23

 

There have been more rate cuts over the weekend with The Coventry reducing its 90-95% LTV three and five-year fixed rates and Generation Home slashing its products by up to 0.23% and releasing some exclusive broker-only deals!

Figures just in confirm that the second charge lending space thrived in 2022 with total lending of £1.71 billion, which is a 45% increase when compared to 2021. Second charges are typically used for home improvements, debt consolidation and to raise money to buy further properties.

 

27/01/23

 

I am pleased to report we have two new exclusive deals with The Skipton to help residential remortgage customers and Santander has launched new residential and BTL products, which are only available via brokers. If your clients don’t talk to Start then they could miss out on the best deal.

There has also been some positive news regarding rental property. Despite reports of a mass exodus of landlords, Landbay have confirmed via a recent survey that almost half of them (42%) intend to purchase additional property in the next 12 months and, despite increasing pressure on the sector, 79% said they do not plan to sell any of their existing properties. This is hugely encouraging for the private rental sector.

 

26/01/23

 

The mortgage price war is starting as lenders slash rates to attract new business. In the residential market TSB has reduced its rates by up to 1.8% and the lowest headline rate currently available is a discounted variable at 3.47% from the Cumberland Building Society.

In the BTL market TMW has released new deals, cutting its rates by up to 0.5% and one of the highlights of the range is a two-year fixed rate at 3.99%! The lowest rate in the BTL space is a 3.84% tracker, again with TMW.

 

23/01/23

 

There have been some positive movements in the markets as swap rates, which provide the funding for fixed rates, continue to drop. Two-year swaps which have an impact on two-year fixed rate mortgages yesterday dropped below 4% for the first time since September last year and now sit at 3.99%, with five-year swaps at 3.53%. It should now only be a matter of time before fixed rates drop even further.

In an ever-changing marketplace The Clydesdale has dropped its rates by up to 0.45% and Accord has released new deals aimed at first-time buyers and borrowers with lower deposits. The number of products available for buy-to-let holiday let properties has seen a resurgence since a substantial drop at the end of last year and there are now over 400 offers on the market.

 

22/01/23

 

There has been plenty of action in the mortgage market with new products being released by Barclays, Teachers Building Society, Coventry Building Society, Skipton and Landbay.

A number of lenders have re-entered the ex-pat BTL market after pulling out after the mini-budget fiasco last year and the rates start from just 1% over the current base rate of 3.5%. There seems to be a large appetite to support these BTL buyers based overseas, which should help to underpin demand for investment properties.

 

21/01/23

 

There are new mortgage rates hitting the shelves from Coventry and The Mortgage Lender today.

The Financial Conduct Authority will also launch a review on the retirement lending space. Currently there are a number of options such as equity release and retirement interest-only products, but the regulator will review if these are being sold correctly and if there is any room for any further innovation.

 

20/01/23

 

he mortgage rate cutting continues with Nationwide making reductions of up to 0.2% for new and existing borrowers. Accord has dropped its BTL rates further and Landbay has released a new range of discounted BTL trackers.

Energy efficiency is a hot topic at the moment and Halifax has created a Home Energy Savings Tool for brokers to use with clients. When a few questions are answered the system estimates the current EPC rating of the property and puts an action plan together to show what needs to be done to improve it. It also shows how much this work would cost to do and how it would affect the energy bills and CO2 emissions.

 

19/01/23

 

December inflation eased slightly to 10.5%, down from 10.7% in November. This is a positive step with the largest downward contribution coming from transport, clothing and footwear, and recreation in culture, with rising prices in food, restaurants, hotels and non-alcoholic beverages increasing the upward pressure. It is hoped that inflation has definitely peaked and will now drop more sharply.

In the mortgage market M-Powered, Keystone and HTB have all reduced their rates to attract new borrowers.

 

18/01/23

 

There have been some positive changes on rate and criteria in the mortgage market. With regards to rates – Skipton has made cuts up to 0.42%, Bluestone up to 0.5% and HSBC up to 0.15%. Natwest and Molo have also made reductions. Any advice given to clients by another broker is now out of date and they need to talk to us to make sure they lock in the best deal.

With regards to criteria Cambridge has re-entered the ex-pat BTL market and Santander has improved its affordability with regards to credit card debt, which means more borrowers can get the mortgage that they need.

 

17/01/23

 

Some positive news coming in on the sales market from Rightmove who reported a 0.9% rise in asking prices in January, after two consequence monthly drops. The number of people looking to buy also increased 55% at the start of January compared to the two weeks before Christmas which is the biggest 'New Year bounce' since 2016.

Hamptons have also confirmed that in 2022 private rents jumped by a total of 12% to a record £71.5 billion. They also commented that the number of households renting privately has grown by 1.12 million over the last decade. They expect continued growth of around 5% in 2023 which is good news for BTL investors.

 

16/01/23

 

Some green shoots of recovery are being reported with regards to the UK economy. Energy prices, although still high, are down 80% since the peak last August with gas prices predicted to fall further throughout the year. This will hopefully contribute to a drop in UK inflation, which can help to reduce the cost of mortgage products. Alongside this there has been no increase in house repossessions and the employment market is still very strong. As a result the steep fall in house prices that was being suggested now looks unlikely.

To further support borrowers new mortgage products have been released by Newcastle, Landbay and Aldermore.

 

13/01/23

 

The year has started off with lots of activity in the mortgage market with leading industry search engine Tenty7Tec registering its busiest ever first working week of the year. 375,120 mortgage searches were carried out by brokers in the week compared to 326,914 in 2022, which represents an increase of 14.8%. The 9th January was the busiest day they have ever had with 83,877 searches.

Inflation in the US was yesterday reported to have fallen to 7.1% in December, down from 6.5% in November. I hope this trend is continued in the UK when the figures are released in the next few days. The drop in the US will put less pressure on the Federal Reserve to raise US interest rates much further which should in turn put less pressure on the Bank Of England to increase the base rate here.

The UK economy also defied expectations and grew 0.1% in November. The services sector, which includes a wide-range of industries from hospitality to shopping and also estate agency and financial services, was the biggest driver of growth in the month.

 

12/01/23

 

More good news is coming in with regards to lending criteria and rates. On criteria Halifax has become the latest lender to increase its income multiples. For applications which include self-employed income where the client is borrowing less than 75% of the property value and is earning over £75,000, they will now lend up to 5.5 times their income, which has increased from 4.49 times. This gives the self-employed much better borrowing capacity.

With regards to rates Coventry has made some aggressive cuts on residential and BTL products with reductions of up to 0.9%. Highlights include a 5 year fixed rate at 4.35% and new tracker rates at just 0.28% over base (current rate payable of 3.78%). M-Powered, Saffron, Hodge and YBS Commercial have also dropped their rates.

 

11/01/23

 

Natwest has reduced its rates and updated its cladding policy saying that they will now look to lend, especially when looking at A3 or B2 cladding systems. This rule will be applied to new and pipeline applications. The property will be valued as if the repair works have been carried out and the leaseholders of qualifying buildings will need to complete and submit a leaseholder deed of certificate to the building freeholder, to show that they are not liable for the costs of remediation.

Elsewhere Clydesdale and Accord have dropped their rates, Kent Reliance has released new residential products and Cambridge Building Society has released new interest-only products that are available up to 70% of a properties value, with no minimum income requirements to qualify.

 

09/01/23

 

In further good news with regards to the cladding crisis Santander have today joined Lloyd's Banking Group and said they will consider applications on properties that are 11 metres ot higher, without automatically requesting an EWS1 form. The conveyancer is to confirm that there will be no cladding costs to pay.

With regards to mortgage rates Virgin has made cuts of up to 0.93% across its residential and BTL products, Precise has reduced its BTL rates and The Darlington has released new residential, holiday let and BTL schemes.

 

06/01/23

 

Natwest has now officially launched its 'Track and Switch' facility which allows customers to take a tracker rate now, but then switch to a fixed rate with them without having to pay an early repayment charge. This gives customers flexibility now with the option to lock-in later when fixed rates look more attractive.

Nationwide has made some aggressive cuts to its rates by up to 0.60% and one of the highlights is a 5 year fixed rate at 4.44%. Barclays and TSB are also refreshing their product ranges and reducing their rates.

 

05/01/23

 

Lenders are making positive criteria changes to allow a wider range of borrowers to qualify for a mortgage and also to allow them to borrow more money.

The Mansfield Building Society has launched a new Versatility range which aims to help people who will not be accepted by High Street Banks. They can lend on non-standard property construction types and offer mortgages to clients on zero hour or short term employed contracts with limited income history, those with credit blips and they will also allow capital raising on remortgages to raise funds for business purposes, which has previously been difficult to achieve.

The Clydesdale has increased the maximum income multiples that it will offer to purchase and remortgage clients borrowing up to 85% of a properties value, to 5.5 times. A couple earning £100,000 jointly could now qualify for up to £550,000.

 

04/01/23

 

There have been some movements on mortgage rates. In the residential market The Halifax have released a new range which includes tracker rates and Accord have reduced their products by up to 0.28%.

In the BTL space Paragon have released new 5 year fixed rates.

 

03/01/23

Some positive news has been circulating regarding the FTSE 100. As 2022 drew to a close this index of the UK's biggest listed companies ended the year up by 1%, compared to its US and European rivals which both fell. The US's Dow Jones and European S&P 500 are down 9% and 19% respectively and the American Nasdaq is down 34% as tech stocks have encountered some serious turbulence.

We are still waiting for UK mortgage lenders to re-price for 2023, but will make sure you are kept fully up-to-date with any developments and I am expecting a price war to emerge in January, which will be great news for borrowers. Please make sure that all buyers, sellers and clients that are looking to re-finance are booked in to speak with us now, to make sure they have up-to-date and accurate advice.

 

23/12/22

 

What a crazy year! The base rate has increased nine times from 0.25% to 3.5% which is the highest level since 2008 as inflation soared past 10%. Truss and Kwarteng’s calamitous mini-budget sent the cost of borrowing racing past 6% at the end of September and helped to make the final quarter of the year very challenging indeed! As we look forward to 2023, however, there are lots of reasons to be optimistic – I think the base rate will still go higher to around 4%, but inflation, which seems to have peaked, will continue to drop and then the Bank Of England will be able to look at bringing it down again. The mortgage market has stabilised and borrowing costs have already come down significantly with fixed rates now starting with a 4. I am confident that they will continue to drop as lenders price more aggressively to win new business in the new year. Lender affordability tests have recently been scrapped, which allows people to borrow more than they previously could, as long as they can demonstrate the mortgage can be serviced.

There have been numerous predictions regarding the property market and what is expected with regards to house prices, with the more recent reports suggesting a relatively small decrease – Nationwide think around a 5% drop which seems sensible to me, but the market is very resilient – just look what happened through the pandemic when it defied all expectations! The fact remains that there are not enough homes to satisfy demand which will underpin values. Lenders have a big appetite to lend with a large number still operating in the 95% space and there are numerous schemes in the pipeline to support new-build property purchases at this level too. This liquidity alongside low-deposit product availability should also hold up prices.

 

22/12/22

 

Despite a tough final quarter UK mortgage lending is still set to hit £310 billion this year which tops last years total of £304 billion, according to The Intermediary Mortgage Lenders Association (IMLA). This has been mainly driven by increases in remortgages and BTL loans. They think this could drop to circa £265 billion in 2023, but this is dependent on what happens with regards to inflation and the Bank Of England’s base rate policy. If inflation comes under control more quickly than expected then the base rate could come down sooner than currently thought, which would stimulate more lending.

 

21/12/22

 

With help-to-buy ending there is a gap in the market for low deposit schemes for new build properties and flats in particular. One new scheme Own New, which was developed by Market Mortgage, who are backed by Capita, now has its first lender signed-up – The Darlington Building Society. The scheme helps to reduce the risk of high LTV lending by partnering lenders with private investors and is funded by housebuilders, who pay a fee on completion of the sale. It is available for new-build flats and houses and there are no regional price caps on a property’s value. The product will be launched early next year and will initially be available in the North-East and Yorkshire before being rolled out nationally. This is good news as it plugs the space left by Help-To-Buy without relying on taxpayer funding. I will keep you updated with developments.

To further support low deposit borrowers and as discussed on Monday the Government-backed mortgage guarantee scheme has now been formally extended for a year so there will also be a good supply of 95% mortgages for the wider market in 2023.

In other news mortgage rates continue on their downward trend with HSBC making cuts of up to 0.55%

 

20/12/22

 

Despite recent changes in lenders stances with regards to cladding there is still some uncertainty and an EWS1 has still been required if RICS guidance had mandated one, if there was no evidence of the developer agreeing to pay for the remediation works or if the cladding status was unknown. Lloyds Banking Group (Lloyds Bank, Halifax, Scottish Widows and Birmingham Midshires), however, has updated its guidance so it will no longer require an EWS1 form to progress applications for properties in England that are five stories or higher or above eleven metres high. The Building Safety Act 2022 means that the route to funding for remediation for these properties is locked in legislation, which means that most leaseholders are protected from cladding remediation costs.

 

19/12/22

 

Over the weekend news has emerged that suggests the Government will be extending their mortgage guarantee scheme to help first-time buyers, which was due to end on the 31st December this year. Under the scheme, banks buy an insurance policy form the Government for loans with a deposit of less than 10% and the scheme covers up to 95% of the losses if the borrower fails to keep up the repayments. The scheme was set up during COVID due the withdrawal of 95% products and it will ensure that borrowers with a low deposit can still get on the ladder.

 

16/12/22 

 

As the base rate increases to 3.5%, which will affect the cost of variable mortgages such as trackers, a number of lenders continue to reduce their fixed rates including Clydesdale, Skipton and LiveMore. Swap rates which are used by lenders to price fixed rates have continued to fall since the mini-budget, when they jumped to over 6%. Tracker rates, however, remained much more affordable (around 3.5% or circa 0.5% above the base rate) and have been the product of choice recently, with penalty-free options providing the flexibility to switch to a fixed rate when the time is right.

We expect further reductions to fixed rates early in 2023 and the base rate could move even higher. Despite tracker rates still offering better value currently - 3.8% tracker as opposed to 4.4% 5 year fixed, this is an ever changing landscape and at some point soon, probably by the end of February.

 

15/12/22

 

There has been some good news in the battle against inflation at last with the headline rate reducing to 10.7% in November, down from 11.1% in October. There is a long way to go to bring it down to the Bank Of England target of 2%, but the fact that it looks to have peaked and is now coming down is very positive.

The Bank Of England meet today to decide at what level to set the base rate in their final meeting of the year. My money is on a 0.5% increase and I will keep you updated as the news comes in. If you have questions about how this will affect you or your clients please pick up the phone to me or your broker.

 

14/12/22

 

Santander yesterday announced that they were relaxing affordability calculations on both residential and BTL products, meaning that borrowers can now achieve a higher mortgage. This will help with increasing our clients purchasing power.

The Bank Of England also announced that gross mortgage advances in Q3 rose 11.2% compared to the same period in 2021 with a total of £85.9 billion. This is the highest quarter recorded since 2007 and is 4.5% higher than Q2 this year. 12.5% of the advances were attributed to BTL and the remainder to owner-occupiers.

 

13/12/22

 

In an attempt to ease the cladding crisis the Government have given 59 councils in England £8 million to track down building owners who are refusing to repair cladding on properties. The Building Safety Act states that freeholders are responsible for paying remediation costs and not leaseholders. This will hopefully speed up essential repairs on buildings where cladding is causing problems for leaseholders who are unable to sell or re-finance.

In the residential mortgage market the Halifax has slashed its rates by up to 1.01%, Skipton have added three more deals to its green range and Suffolk, Post Office and Hinckley and Rugby have revised their products. Fixed rates are starting to look a lot more attractive than they have done in recent months.

 

12/12/22

 

The UK economy grew by 0.5% in October as activity bounced back after a drop of 0.6% in September, when many business closed their doors during the national mourning period. Car sales rebounded, with good performances in the service and health sectors and also the continuation of a strong run in the construction sector contributing to the increase.

There are also signs that BTL is far from dead with 12.2% of homes in 2022 being bought by investors which is up from 11.7% in 2021. This is still below the 15.5% peak in 2015 - the year before the stamp duty surcharge was introduced, but with increased rents, downward pressure on prices and BTL mortgage rates coming down the demand from investors could increase further.

 

09/12/22

 

The Government is set to announce details of a massive overhaul of banking regulations around financial controls, that were introduced after the 2008 financial crisis. This is being referred to a second “Big Bang” - a reference to the de-regulation of financial services by Margaret thatcher in 1986. There will be a range of different public opinions on this, but I think it will be very positive for the mortgage market and subsequently the property market as it will give lenders more flexibility with regards to setting policy rules, which will allow more people to borrow money. Lessons have been learned so I think this will be done in a much more sustainable way than the manner in which this was done previously, which ultimately led to the credit crunch.

There have been a lot of movements in the BTL market with Vida, United Trust and Paragon releasing new rates to try to attract more business.

 

08/12/22

 

Competition for mortgage business is heating up as the temperatures plummet with eight lenders re-pricing to try and attract new business. In the residential market HSBC, M-Powered, Newbury Building Society, Furness Building Society, Barclays and Dudley Building Society launched new products and in the BTL space Vida Homeloans and Paragon have revised their ranges. With so many changes it is key that all mortgage borrowers talk to us as even advice that they may have had yesterday, will already be out of date.

 

07/12/22

 

The BTL mortgage market had been hit by rate increases after the infamous mini-budget as lenders stress rates have increased, which has reduced the amount that investors can borrow. In a very positive move, however, lenders have now started to reduce their stress rates as mortgage rates falls, so that larger loans can be achieved. This means more BTL purchases, remortgages and let-to-buys can happen which will help you to put more deals together. The largest BTL lender The Mortgage Works have been the latest lender to lower their stress rates. We need to talk to your investors and sellers looking to do a let-to-buy now as the numbers will have changed significantly for them.

In the residential market Natwest and Generation Home Loans have reduced their rates further.

 

06/12/22

 

Some new products were released to the market yesterday including a professional mortgage range from Hodge which allows lending of up to 6 times the clients income and is available to people in occupations such as barrister, architect, doctor and dentist. If they are self-employed then the lender only needs to see one years’ worth of trading figures too. This could help to unlock a move for your professional clients so make sure they are booked in to see us.

Natwest and Bank Of Ireland reduced their rates further and statistics were released showing that tracker and discounted rates are gaining popularity in the market. In September fixed rates accounted for around 90% of all mortgages whereas now circa 45% of clients walk away with a tracker or discounted rate, as they currently represent much better value. We expect this to change as the price of fixed rates drop but at the moment a variable rate is working for a much larger number of clients than previously. Some lenders don’t offer tracker or discounted rates so if your buyers and sellers do not talk to us then they could miss out on the most suitable product for them.

 

05/12/22

Mortgage rates continue to come down with further reductions from The Coventry Building Society over the weekend. We now have fixed rates from 4.65% and variable rates from 3.3% and will find the most suitable product for your buyers and sellers based on their current situation and future plans.

Please don’t forget you have 24 hour access to our best buys guide and you can find the link below. Don’t hesitate to talk to us if you have any questions on products.

http://news.acorngroup.co.uk/?page_id=5078

 

02/12/22

 

News has just come in that average rents in England are down 2% in November, but they are still up over 11% when compared to the average rent in 2021. This is great news for BTL investors.

In the mortgage market Halifax are working hard to win remortgage business and retain their existing clients with reductions of 0.72% across their remortgage and retention range.

 

01/12/22

 

Did you know that all lenders treat self-employed clients differently? Some will look a three year track record when deciding what they can borrow, whereas some will just look at the latest year. Some will restrict lending to only 4 times their income whilst some will look at 6. With regards to limited companies some will look at the overall profitability of the business when deciding what sized loan they can achieve, whereas some will only look at the money they have actually drawn from the business in the form of salary and dividends. Some of the more specialist lenders can also be persuaded to look at projected future earnings based on current trading figures and expectations. The key point here is that your self-employed buyers and sellers will not get the advice they need from their own bank or a broker who operates from a limited panel of lenders.

 

30/11/22

 

Some good news coming out on where rates could potentially go next year. Investec group economist Philip Shaw thinks that the Bank Of England Base Rate will peak at 4% next year which is much lower than the 6.25% that was expected after the mini-budget. He also thinks that inflation will start to fall at the end of 2023 and that the Base Rate could even start to fall back then and be at 3.25% - 3.5% by the end of the year, before falling further in 2024. This is good news for mortgage rates as the cost of fixed rates are dictated by market sentiment and Base Rate expectations and if these start to improve the cost of fixed rates will fall further.

Accord mortgages are keen to support the market and have reduced their residential rates by up to 0.45%.

 

29/11/22

 

here has been lots of focus on the energy efficiency of properties with the Government set to launch a new energy insulation scheme, which could save households up to £310 off their annual energy bills. The insulation grants can be used to upgrade homes, making them more efficient, which will reduce bills. This comes as Mortgage Advice Bureau have confirmed that, based on recent research, just under half (46%) of potential buyers would rather have good insulation over a bigger garden (29%). The research also confirmed that a fifth of Brits (19%) wouldn’t consider a house with an EPC rating of less than C. Property buyers looking to reduce energy bills is the key reason they would only consider a higher EPC-rated house.

There has been plenty of new mortgage products hitting the shelves over the last 24 hours.

 

28/11/22

 

The downward trend in mortgage pricing continues with more lenders dropping their fixed rates below 5%, whilst trackers and discounted rates now start with a 3. In the residential market Accord, Clydesdale and Leeds have launched new rates and in the BTL space Kent Reliance, Precise and Clydesdale have re-priced also.

To continue to support first-time buyers and, in a show of support for the housing market, one of our specialist lenders the Hanley Economic Building Society is continuing to push for business at 95% LTV. They feel that although house price growth will slow, over the longer term property represents an excellent investment and it is key that these products are available to allow people to get onto the ladder. They allow 95% lending up to a maximum loan of £500,000 which would facilitate a maximum purchase price of £52,6315.

 

25/11/22

 

The safe and steady budget measures announced recently have reassured the markets and the pound is gaining strength and is up to £1.21 against the dollar. It has still lost 10% of its value this year but looks like it could continue to strengthen.

In the mortgage market TMW have cut their BTL rates by up to 0.95%, Halifax have reduced products by up to 0.47% and M-Powered have made further reductions and now have residential fixed rates below 5%. Fleet have also brought down the cost of their BTL rates.

To further support landlords The Skipton, Kent Reliance, Precise and Interbay are launching green schemes to help landlords to improve the EPC rating of their properties to C or above, so that they conform with incoming regulations.

 

24/11/22

 

The cost of funding for fixed rates in the swap market continues to drop and 2 year money is currently at 4.19% with 5 year money at 3.69%, but lenders still haven’t passed this reduction on to borrowers. They have, however, started to reduce their tracker rates and there seems to be a price war emerging in this space. We now have tracker rates as low as 3.39% which is only 0.39% above the Bank Of England base rate.

 

23/11/22

 

Alongside our whole of market residential and BTL mortgage proposition we also work with partner firms who can access the whole of the commercial mortgage market too. This allows us to provide finance for all types of commercial property so that our clients can purchase and re-finance them. We can also arrange development finance where the lender also provides the money to pay for the build costs and bridging loans where a conventional mortgage is not suitable, perhaps the property is not habitable. 

In other news Nationwide have made cuts to their entire residential range of up to 0.30% and Landbay have also have reduced rates by up to 0.30% across their BTL range.

 

22/11/22

 

Research from Legal & General shows that there was a lot of demand for specialist mortgages in October, which reinforces the need for niche lenders and products and also whole of market brokers like ourselves who can help clients in unusual situations. Joint borrower sole proprietor products, which involve one of the clients being on the mortgage to help with borrowing potential, but not on the deeds of the property, were the third most searched criteria point. Searches for clients with foreign income increased by 5% and searches for clients on a visa were the most popular which shows that UK property is popular with overseas investors, which could be due to the recent weakness of the pound. Buy to let searches grew by 36% as criteria has tightened in this area recently and searches for products that consider the properties EPC rating were up by 6%. Clients looking for high-rise flats were up by 13% which could indicate that more buyers are returning to cities from rural areas post-pandemic.

With regards to new products, Santander have made some changes to their range with new tracker and fixed rates and reductions of up to 1.25% and The Coventry have made further cuts to residential and BTL products. The Saffron Building Society has also cut its residential stress rate from three to two percent which will allow them to offer larger loans to borrowers. This comes after the Bank Of England removed the requirement to stress products at their follow-on rate (standard variable rate) plus three percent from August.

 

21/11/22

 

There have been a lot of discussions around the energy efficiency of housing, as the cost of running a home is at the forefront of people’s minds during the current economic climate, with gas and electricity prices rising. Out of 458 UK lenders that were surveyed by Mortgage Advice Bureau that do not currently have green mortgage products, 98% said they would in the future and in the last year the number of lenders offering a green product has increased by a third. These products offer incentives for having an energy efficient home. A separate piece by the Building Societies Association discovered that 55% of polled homeowners have considered retrofitting their home over the next year and half had already made some improvements over the last twelve months including changing windows and doors, improving insulation and using different lightbulbs. Energy efficiency will become a much larger factor in consumers housing and mortgage choices over the coming months and years.

With regards to mortgage products a number of lenders have released new rates including Birmingham Midshires, Newcastle Building Society and West Bromwich Building Society. We have seen significant rate reductions over all fixed rate bandings over recent weeks and I expect this downward trend to continue.

 

18/11/22

 

After a safe and steady budget in which the property and mortgage markets escaped relatively unscathed, although the Stamp Duty cuts will now end in 2025, lenders continue to price downwards. In the residential space M-Powered have reduced their two and three-year fixed rates and Accord have made reductions of up to 0.32% across their range. In the BTL market Zephyr Homeloans have launched a new five-year fixed rate product and Precise have released new BTL products which are available up to 75% LTV.

Research from Handelsbanken suggests that 60% of landlords now intend to increase their rents in response to the increased costs of living and mortgage rates. Tenants will again face the brunt of this and one wonders how long the Government will allow this to continue before intervening the help the private rental sector, perhaps by reviewing the taxation of BTL properties not owned by limited companies.

 

17/11/22

 

Today I wanted to focus on Nationwide’s ‘Helping Hand’ product. This is for first-time buyers exclusively and allows them to borrow up to 5.5 times their income (joint for a couple) with only a 5% deposit. This increases their borrowing potential by over 20% compared to a normal Nationwide product and other lenders offering 95%. They have to take out a five or ten-year fixed rate to qualify. This is very popular with the broker team and allows us to help first-timers make that all important step to becoming homeowners.

There have been a lot of changes in the mortgage market; Leeds Building Society have dropped their residential rates by up to 0.45% and Virgin have reduced their remortgage rates, whilst Together Money have re-launched two-year fixed products for residential first and second charge mortgages and also their commercial range and Skipton have released some limited-edition fixed rate products on a first-come, first-served basis. I am hoping that a sensible budget today will be looked upon favourably by the markets which means the cost of borrowing can continue to fall.

 

16/11/22

 

UK inflation increased to 11.1% in October. It is expected to peak soon, averaging 8.9% in 2022 and 5.5% in 2023 before falling below the Bank of England’s 2% target (to 1.8%) in 2024. The fact that inflations seems to be near the top and that demand in the labour market is cooling, means that there is less pressure to hike the base rate and it could rise to a lower level than previously thought.

In the mortgage market Skipton and M-Powered have dropped their rates, Generation Home have partnered with The Nottingham Building Society to expose their products to more borrowers and Octane Capital have confirmed that they expect average mortgage rates to fall significantly in 2023.

 

15/11/22

 

It is great to see lenders continuing to innovate with different types of products. The Vernon Building Society has released it’s ‘Headstart’ range. It allows one or more family members to support a buyer in two ways; by putting up security against the mortgage and also becoming a joint borrower, without going on the deeds, which allows a first-time buyer to borrow 100% of the property value in their own name. The extra security supplied by the family member must be way of a charge on their property or cash held in a Vernon Savings account.

 

14/11/22

 

Lenders continue to re-price downwards and release products to give residential and BTL clients extra options. In the BTL market The Mortgage Works are offering one-year fixed and tracker rates so the client can choose another product in a year when some predict the cost of fixed rates will be lower. Land-Bay also have a one-year fixed option and all of these come at competitive rates of interest.

In the residential space HSBC and Coventry have dropped rates and Platform have got a sub-5% fixed-rate product launching today.

 

11/11/22

 

The cost of funding for fixed rates continues to drop with two year swap rates at 4.17% and five years at 3.82% and lenders are starting to react. Nationwide have made cuts of up to 0.7% across their two, three, five and ten-year fixed rates and trackers, specialist lender Bluestone are reducing their rates by 0.8% and Accord are cutting their BTL rates by up to 0.58%.

This means the headline cost of fixed money has dropped by nearly 2% in the past 6 weeks and all group clients should talk to a Start broker today to make sure they have an accurate and up-to-date understanding of the cost of borrowing.

 

10/11/22

 

The rental market continues to move at a rapid pace with 46% of survey respondents noting an increase in tenant demand in October, according to RICS. Due to reducing supply they expect rents to increase another 4% over the next 12 months.

Lenders have been busy re-pricing products with Virgin, Natwest, Barclays and HSBC reducing rates, whilst CHL have released new 5 year-fixed BTL rates. Some of the Private banks we work with, such as Handelsbanken, are looking like good value as they price directly based on Swap rates and as a result have been much quicker to reduce their rates than the high street banks.

 

09/11/22

 

There is a lot of debate in the press around house prices. They continued to increase in October and the annual growth rate in the average house price for England and Wales was 8.8%, but the rate of increase was notably slower than in August (10%) and September (12.3%), data from e.surv reveals. Interest rates are higher and inflation continues to be a problem, but unemployment is very low and lenders have a very healthy appetite to lend. When you add in a chronic lack of supply then there are some genuine reasons for optimism and property remains a solid long-term investment.

In the mortgage market Generation Home Loans, who were the subject of a recent mortgage market focus and offer the innovative income booster facility, have dropped their rates again by up to 0.08%. Legal and General have also acquired an 18.75% stake in their business to help to promote the proposition as they believe it really is a gamechanger. In the BTL world Paragon have released a new range of 5 year fixed-rate products and the digital lender Molo have also released a new BTL savings booster product. This allows borrowers to deposit lump sums with them and then they will pay less interest on their mortgage. This works in a similar way to an offset and is designed to help landlords who are having to adjust to higher monthly payments.

 

08/11/22

 

We had some more downward movement on rate in the mortgage market yesterday. M-Powered have cut some of their rates by up to 0.76% and Accord have also cut theirs by up to 0.20%. The cost of 2 year money in the SWAP markets is 4.31% and 5 year money is priced at 4.08%. Lenders still haven’t reduced their rates enough in my opinion given the fall in the cost of funding and there is still some way for them to fall.

The UK construction sector gained some momentum last month, with work rising at its fastest pace since May, according to the S&P Global/CIPS UK Construction Purchasing Managers’ Index. Total industry activity came in at 53.2 in October, up from 52.3 in September, the highest reading since May, due to a combination of new project starts and strong pipelines of unfinished work. A reading above 50.0 indicates growth.

 

07/11/22

 

Whilst the Prime Minister and Chancellor consider what the budget will look like and decide if they will they look to raise extra taxes from pensions, capital gains tax or even the self-employed, there has been plenty of product movement in the mortgage market. Skipton Building Society have extended their BTL range and reduced rates by up to 0.29% and Clydesdale have reduced rates for new and existing customers. Quantum mortgages, who are in the specialist BTL space, have reduced their tracker rates and also introduced a ‘switch to fix’ facility which mirrors what mainstream lenders NatWest and Barclays are offering. This gives more landlords the opportunity to take advantage of a lower tracker rate at the moment, which they can then convert to a fixed rate without paying an early repayment charge, should a fixed rate look more appealing.

 

04/11/22

 

The Base Rate increased by 0.75% to 3% yesterday in what was the biggest individual hike since 1989. Looking at the Monetary Policy Committee (MPC) notes and commentary around the industry one very positive message seems to be that there is now the feeling that the base rate may not increase to the level that was previously expected. The Bank Governor Andrew Bailey said “Based on where we stand today, we think bank rate will have to go up by less than currently priced in financial markets”.

In the mortgage market Twenty7Tec’s platform data has revealed last month was the third-busiest month ever for total mortgage searches with 1,504,582 throughout October. This shows demand for mortgage products is still very high. The financial landscape is changing but there is still lots of business to be done.

 

03/11/22

The Bank Of England Base Rate is the rate that they charge banks and financial institutions for loans with a maturity of 1 day. When lenders price variable tracker rate products they will add a margin on top of this figure so that if the rates rise or fall they will still make the same margin. This rate is currently 2.25% and the Monetary Policy Committee (MPC) meet 8 times per year to decide what it will be. They are meeting today and the likely outcome is an increase of 0.75%. I will keep you posted on this. The base rate only directly affects people who have mortgages which are on tracker rates. It can also affect other variable mortgage products such as discount variable and standard variable rates. These products are not directly linked to the base rate but they are linked to the particular lenders standard variable rate. The lenders are under no obligation to follow the base rate movements (particularly in recent years when the rate was so low and the trajectory was downwards), but when the base rate rises they will typically increase their standard variable rate too.

Swap rates are the fixed price at which lenders can borrow money at for a period of time from financial institutions to then lend to mortgage customers. Swap rates are set at a level at which the financial institution feels they will make a profit on over the period of the fix. The base rate will impact this but the two are not directly linked as the swap is priced to predict what the base rate will do over the fixed term. Following the catastrophic mini-budget it was predicted that the base rate could reach up to 6% so swap rates increased dramatically, with the two year cost reaching over 5.6%. As things have settled, however, with the reversal of the planned tax cuts and the appointment of a new Prime Minister, market sentiment has improved and the expectation is that the base rate may not even reach 5% now. As a result the cost of 2 year swap rates was last night 4.29% and any base rate rise today has already been priced in. Lenders will borrow money at this level and then lend it on to mortgage customers, adding on a margin so that they make a profit. At the moment, in my opinion, these margins are far too high with lenders pointing to the amount of applications they are dealing with as a reason. As they clear their backlogs, however, I expect them to lower these margins and then the cost of fixed rate mortgages available to borrowers will drop.

 

02/11/22

There has been lots of activity in the mortgage market. The Skipton Building Society have re-entered the BTL market and have also added new residential fixed rate products. The Buckinghamshire Building Society have re-entered the shared ownership market with new products and criteria in an effort to support affordable housing, as the Help-To-Buy scheme draws to an end. The Hanley Economic Society have launched three new five-year fixed rates products at 95% LTV and Keystone Property Finance have brought back five-year BTL fixed rates. There is a lot of money out there to lend, but please make sure all buyers and sellers talk to a Start broker to ensure they receive whole of market advice, as many broker firms are restricted to panels and will not have access to some of the lenders I have mentioned today.

 

31/10/22

The Bank Of England’s Monetary Policy Committee (MPC) meet this Thursday to decide what is next for the base rate. Analysts and experts are expecting a rise between 0.5% and 1% to support the pound and combat inflation. I am personally expecting a 0.75% increase and will keep you posted with developments. Any change to the base rate will immediately affect the payments for approximately 26% of mortgage holder who are on variable rate products.

In the mortgage market, there was a lot of noise in the national press over the weekend around mortgage rates dropping, which sends out positive signals to the general public, which we can re-inforce. Paragon has released new two and five-year fixed rates in their BTL range, Darlington Building Society have launched fixed rates and Skipton has brought back their range of two-year residential products.

 

28/10/22

Expert mortgage advice has never been as important as it is today. Fixed rates have increased and there is the school of thought that although the cost of borrowing has risen, as inflation cools, the Government settles and lenders improve their capacity for taking on new business then this will come back down again. This has already begun to happen and the cost of 2-year swap rates in the money markets has dropped from around 5.6% after the mini-budget to 4.32% last night and this trend should continue. The cost of fixed rates has not fallen at the same rate yet, however, as lenders point to economic uncertainty and also their ability to process new cases as a reason. To keep their interest liability to a minimum clients can potentially look at taking a tracker rate until the cost of fixed rates comes down further and then they could switch to a fixed rate, as opposed to locking into a higher fixed rate now.

To support this lenders such as NatWest are offering the ‘track & switch’ option which allows you to switch from a tracker rate to a fixed rate without paying an early repayment charge and Barclays offer the same facility called ‘switch & fix’. Landbay has also released two-year tracker products to help landlords to keep their monthly costs down. I expect more lenders in the residential and BTL markets to offer a wider range of tracker and discounted products that offer greater flexibility when moving to a fixed product. These options do of course offer a greater degree of risk, so one of our brokers will carry out a detailed analysis of the client's personal and financial situation, to ensure that this is the best course of action.

 

27/10/22

The budget was yesterday delayed until the 17th November to give the new Government the chance to ensure any decisions taken can stand the test of time. Markets reacted well to this with the pound gaining strength against the dollar, fuelled also by news that US house prices are not growing as quickly as expected. It reached its highest level since before the mini-budget and currently sits at 1.16 dollars per pound. There is new data coming through which shows that the worst may be over in terms of inflation. Shipping costs, which are still much higher than pre-covid, have dropped massively in the last few months and continues to do so which could help to suppress the increase in the cost of goods as transportation costs are lower.

In the mortgage market, Coventry have released new rates at 65% LTV and Barclays launched new residential and BTL products today. Barclays are also cutting the cost of three existing BTL products in its customer reward range.

 

26/10/22

We have had further downward movements in rate as the cost of borrowing in the swap markets continues to fall (it is currently 4.55% for 2-year money and 4.30% for 5-year money). Santander has cut selected residential fixed rates by up to 0.5% and BTL rates by 0.05% and Accord are cutting selected products by up to 0.53%. New residential and BTL products have been released by VIDA and West One have launched new residential five-year fixes.

In other news specialist lender, Secure Trust Bank are looking to help landlords to improve the EPC rating of their properties. In what has been seen as another attack on the private rental sector the Government have confirmed that by 2025 only properties with an EPC rating of A,B or C can be let to new tenants. This will be extended to existing tenancies from 2028. Help is being provided for landlords in the form of EPC improvement loans. These are available to existing customers and serve as a top-ups to existing loans. They are available at fixed sums of £6,500 for properties with an EPC rating of D and £13,000 for those with a rating of E. This will hopefully lead the way for other lenders to extend help to landlords who need to improve their properties.

 

25/10/22

Figures coming through from Hamptons show that the number of registered BTL companies has more than doubled since 2017. It is estimated that 40% of BTL purchases are now made through a corporation. The number of incorporations (moving a BTL property from personal name to company name) is likely to remain high as there is a stamp duty saving following recent changes and companies can offset mortgage interest payments against rents received. This gives them a better chance of making a profit as costs rise. Please pass over your investors to a broker today so we can review their portfolio to ensure it is structured in the best way.

We also had some movement yesterday on products with HSBC and Coventry reducing their rates and we are hoping that the fact that the markets consider our new Prime Minister ‘a safe pair of hands, translates into further reductions in borrowing costs. Landbay has also launched new 5-year BTL fixed rates for standard properties, HMO’s and multi-unit blocks.

 

24/10/22

Despite recent market volatility, L&G has confirmed the number of mortgage criteria searches has remained consistent from August to September. This shows that demand for mortgage products remains high. The nature of searches has shifted, however, with increases in enquiries for the following scenarios - 23% extra searches for Let-To-Buy, 32% for landlords using gifted equity, 18% for portfolio landlords, 53% for HMO’s, 15% for clients looking to remortgage after just 6 months, 16% for products that consider a properties EPC rating and 24% for retirement interest-only mortgages. There was also an increase of 11% where buyers had missed mortgage payments.

There has been some activity with regard to mortgage products over the weekend - Accord has reduced their BTL rates, Paragon has released discounted variable rates for portfolio landlords and Virgin Money have released new BTL and residential rates.

 

21/10/22

In the mortgage market, Vida Homeloans have returned to BTL and residential lending with the release of new products and Virgin Money has introduced added a green reward scheme. The lender is offering £250 cashback to borrowers who take additional borrowing to retrofit their homes to be greener. This is in addition to the greener mortgage products it launched in 2021 which give a lower rate to borrowers who buy new-build homes with an Energy Performance Certification (EPC) rating of A or B.

 

20/10/2022

There is lots of lender activity at the moment. Accord has re-entered the market and is offering 95% LTV products which shows they have confidence in house prices holding, Coventry for intermediaries has re-launched fixed rates and reduced their tracker rates, Generation Home have reduced their five-year fixed rates by up to 0.20% and Skipton International have reduced their BTL rates. The cost of two-year funding for fixed rates (two-year swap rates) is now over 1% lower than the highest point following the mini-budget, so there is scope for more lenders to follow suit and reduce their rates.

Land registry figures have also been released which show that UK house prices have increased by 13.6% in the year to August. Average home prices across the country increased 0.9% over the month of July. In London house prices lifted 0.9% in the month to August and rose 8.3% annually, which took the average property price to £552,755.

 

19/10/22

The Buckinghamshire Building Society have re-launched their fixed rates and self-build and custom-build finance specialist BuildLoan has launched a new advanced-stage payment product.

 

18/10/22

It was another busy day yesterday. Most of the remaining tax cuts from the now infamous Kwarteng mini-budget were reversed, but this did not include the stamp duty reduction which is great news for our buyers! The pound gained against the dollar and the cost of two-year funding in the swap markets dropped again.

Despite the challenges in the economy, asking prices for new houses coming to market lifted by 0.9% in October to a new record average of £371,158, as stock shortages outweighed market turmoil since last month’s mini-budget, according to Rightmove.

 

17/10/22

There has been a lot happening in the markets! We have a new Chancellor, the Prime Minister has reversed the decision on Corporation Tax, which will now rise from 19% to 25% as previously expected and many are speculating that her days are now numbered. This news has had a positive impact on the cost of mortgage funding and the 2-year swap rate dropped to under 5% on Friday evening. I am hoping this will lead to lenders dropping rates this week and I will keep you updated.

 

14/10/22

More lenders are returning to the market today. Generation Home Loans are back with their innovative, residential, guarantor-style products up to 95% and we will have a look at them in more detail in the focus next week. Start favourite (particularly Sam Wheeler) The Suffolk Building Society return to the residential, holiday let and BTL space and Molo Finance has returned to BTL lending. It is key to note that many brokers do not have access to these lenders, but our whole of market status gives us the ability to work with them.

Octane capital has confirmed that they expect the UK mortgage broker market to grow to £2 billion by 2025 in terms of revenue generated. This is an increase of 12% from today and the market has doubled in value in value in the last 10 years. More people are benefiting from comprehensive, expert advice every year so get your clients booked in to see a Start broker today so that they can benefit too.

 

13/10/22

Some news coming in from the markets today – Aldermore have issued new residential and BTL products, The Coventry has released three-year fixed rates which have been very popular with clients in the past and Fleet mortgages have also released five and seven-year BTL fixed rates. Lenders are actively looking for new business.

Also against a backdrop of inflationary concerns, monthly construction output increased by 0.4% in volume terms in August, according to the Office of National Statistics. August was the second highest month on record at £15 billion, with May this year remaining as the highest since records began. The biggest contributors to the rise were the increases in infrastructure (5.3%), private industrial (4.3) and private housing (1.7%). Construction output in August was also 3.2% (£461 million) above the February 2020 pre-COVID level.

 

12/10/22

I am pleased to report we have a new residential lender called M-Powered! They are fintech company that use the power of technology and data science, along with artificial intelligence to deliver faster outcomes on a fully automated digital platform. Everything is dealt with vis this platform and they do not use any paper or send any chaser e-mails. This allows them to produce rapid mortgage offers in as little as 90 minutes! They have some huge backing from the likes of Barclays and J.P.Morgan.

This development shows they are committed to the prime residential market and they confirmed “Whilst rising mortgage rates and the increasing cost of living will impact the mortgage market, we are still seeing positive demand for mortgages”. They are offering products up to 85% loan-to-value.

11/10/22

In the news today the Government is bringing forward publishing its spending plan and the Office for Budget Responsibility forecast to the 31st October. This is earlier than the previously scheduled date of the 23rd November. If this lands well with the Monetary Policy Committee and the markets then this could result in a smaller increase to the base rate when the Bank Of England meet on the 3rd November and also a reduction in SWAP rates which would have also have a positive effect on mortgage costs.

The Finance and Leasing Association also confirmed that the second charge mortgage business grew by 45% in the year to August 2022. These loans can be used for a number of purposes such as debt consolidation and home improvement.

10/10/22

We had a much calmer weekend in the mortgage market than we have had in recent times. Liquidity remains good and lenders are keen to help borrowers. After withdrawing some new products from the market due to the recent volatility, I am pleased to report that The Coventry Building Society, Accord and Clydesdale Bank have all now re-launched new products.

The cost of fixed rates has increased recently. We are hoping that they will drop and I will of course keep you updated on this, but in the meantime, we also have some very competitive discounted variable rates. The Newbury Building Society is still offering a discounted rate at just 2.34%. Book your clients in to see a Start broker and we will run through a detailed analysis of their personal and financial situation and ensure they walk away with the most appropriate product.

 

07/10/22

Yesterday was another busy day in the mortgage market:

HSBC reduced the cost of their product switch rates by up to 0.4% for existing customers, which was well received.

The chancellor Kwasi Kwarteng met with the leaders of major lenders to discuss the recent market volatility. They talked about the extension of the government's mortgage guarantee scheme which was due to end in December. The scheme allows lenders to buy a guarantee from the Government on the element of new mortgages between 80% and 95% of the property value, so if the borrower defaults that portion is covered by them. This allows banks and building societies to continue to lend up to 95% LTV even in more uncertain economic times and gives our buyers (particularly first-timers) the ability to keep buying property. I will keep you posted as things unfold.

06/10/22

Some positive news coming in from the mortgage market today. ​

The previously BTL, commercial and second-charge-only lender West One Loans has entered the first charge residential market, offering loans that it says are “aimed at borrowers who are underserved by high-street lenders”. Each application will be manually underwritten, and they will make allowances for adverse credit and for clients who have only been self-employed for 1 year. ​This demonstrates their continued confidence in the housing market.

The demand for mortgage products has never been higher with the large online mortgage search platform Twenty7Tec reporting the last week in September as the busiest week on record for mortgage searches. Fixed-rate mortgages, Green mortgages, £1 million plus mortgages and self-employed mortgages were particularly popular in the searches.

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