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Mortgage market review - November 2018

Market Data

Mortgage market review for November 2018.

MACRO NEWS AND DRIVERS

Mortgage fees reach highest level in five years - Mortgage fees have increased by £15 since August to stand at £1,005, the highest average recorded in more than five years, according to research from Moneyfacts. 
https://www.yourmoney.com/mortgages/mortgage-fees-reach-highest-level-five-years/

First time buyer mortgage rates reach highest level since June 2017, new data shows - The number of first-time buyers in the UK has reached its highest level since June 2017 but buy to let landlords are down, according to new lending figures.
https://www.propertywire.com/news/uk/first-time-buyer-mortgage-rates-reach-highest-level-since-june-2017-new-data-shows/

Research reveals the rise of the pension pot landlord in the UK - Nearly half of all buy-to-let landlords in the UK are using their property investment as a pension pot, new analysis has found.
https://www.propertywire.com/news/uk/research-reveals-the-rise-of-the-pension-pot-landlords-in-the-uk/

Mortgage approvals by British banks fall to seven-month low - The number of mortgages approved by Britain’s high street banks fell to a seven-month low in September, a month after the Bank of England raised interest rates.
https://www.theguardian.com/business/2018/oct/24/mortgage-approvals-by-british-banks-fall-to-seven-month-low

Mortgage industry reacts to Budget 2018 - Amid the claims to an “end to austerity” and tax relief for small businesses there was a handful of housing-focused announcements, which consisted of an additional £500m to the housing infrastructure fund (among other building initiatives), the removal of stamp duty for shared ownership first-time buyers, the tightening of private residence relief rules, and an end date to the Help to Buy scheme – March 2023.
https://www.mortgagestrategy.co.uk/industry-reacts-to-budget-2018/

REGULATION AND LEGISLATION

Government releases leasehold numbers - The ministry of housing, communities and local government has issued statistics on the number of leasehold dwellings in England across 2016 to 2017.
https://www.mortgagestrategy.co.uk/government-releases-leasehold-numbers/

Help to Buy scheme extended to 2023 for first time buyers - First-time buyers stand to benefit from a two-year extension to the Help to Buy Equity Loan scheme unveiled in the Budget.
https://www.telegraph.co.uk/money/consumer-affairs/help-buy-scheme-extended-2023-first-time-buyers/

Buy-to-let landlords hit in Budget with capital gains tax exemption restrictions - Buy-to-let landlords suffered another disappointment in the Autumn Budget with the announcement from the Chancellor Philip Hammond MP, that from April 2020 lettings relief will be reformed so that it will only apply where the owner of the property is in shared occupancy with the tenant and that the final period exemption will also be reduced from 18 months to 9 months.
https://www.whatinvestment.co.uk/buy-to-let-landlords-hit-in-budget-with-capital-gains-tax-exemption-restrictions-2614885/

PRODUCT DEVELOPMENTS AND INNOVATION

Virgin Money scraps guarantor mortgage - Virgin Money has stopped offering its guarantor mortgage range citing a lack of demand for the product, Mortgage Strategy can reveal.
https://www.mortgagestrategy.co.uk/virgin-money-scraps-guarantor-mortgage/

Newcastle BS launches Lifetime Isa - Newcastle Building Society has launched a Lifetime Isa product. First announced at the beginning of this month, Newcastle’s adoption of the government-backed initiative makes it just the third lender to offer the savings product, alongside Skipton and Nottingham Building Society.
https://www.mortgagestrategy.co.uk/newcastle-bs-launches-lifetime-isa/

Yorkshire offers mortgage discount - Yorkshire Building Society is offering discounted mortgage rates for borrowers who have saved for a deposit in a Help to Buy Isa.
https://www.ftadviser.com/mortgages/2018/10/25/yorkshire-offers-mortgage-discount/

Check if you can get a mortgage without impacting your credit rating - The ‘eligibility checker’ carries out a soft credit check on a prospective first-time buyer, home mover or remortgagor after they give personal details including income and outgoings.
https://www.yourmoney.com/mortgages/check-if-you-can-get-a-mortgage-without-impacting-your-credit-rating/

Nationwide cuts rates and raises maximum loan size - The society has also raised the maximum loan size from 350,000 to £500,000 for all house purchase transactions up to 95% LTV, including for first-time buyers.
https://www.mortgageintroducer.com/nationwide-cuts-rates-raises-maximum-loan-size/

CONSUMER TRENDS

Rental payment history should be considered in lending decisions say 80% of consumers - Online research from Equifax, the consumer and business insights expert, reveals Brits want lenders to take factors, such as rental payment history, into consideration when it comes to applications for credit. Four in five Brits (80%) think lenders should consider their rental payments when it comes to approval or rejection on credit.
https://www.whatmortgage.co.uk/news/rental-payment-history-considered-lending-decisions-say-80-consumers/

Revealed: How homebuyers are funding their deposit - Many homebuyers are relying on financial support from family but the majority of people are purchasing a house with no assistance.
https://www.whatmortgage.co.uk/news/revealed-homebuyers-funding-deposit/

Mortgage Process Ranked In Top Three Most Stressful Situations - Unsurprisingly, Millennials aged between 20 and 34 were the most stressed by the thought of the mortgage process. This sector of society are already finding the saving process for a mortgage unbelievably difficult; the report also highlights that this anxiety does not dissipate once they have saved the necessary money, if anything the process exacerbates and heightens their fear as they would rather break a bone than go through the mortgage application
https://www.todaysconveyancer.co.uk/main-news/mortgage-process-ranked-top-three-most-stressful-situations/

EXPERTS CORNER

Market Watch: Housing agendas miss the mark – Despite the prominence given to housing during conference season, political parties offered few original solutions for long-term problems.
https://www.mortgagestrategy.co.uk/market-watch-housing-agendas-miss-the-mark/