Posts with tag: mortgage rates

Keystone announces new range

Published On: September 1, 2015 at 3:55 pm

Tags: Mortgage lending,mortgage rates,residential landlords

Keystone has announced that is has revealed a fresh, short-term finance range, providing a selection of bridging loans aimed at residential landlords.

Supplied by Lancashire Mortgage Corporation, funding for the scheme comes from the same provider as Keystone’s Solutions Range.

Products

There are six products in the new range and are all priced relative to the credit profile of the applicant, with different rates for prime borrowers to those with light-medium or medium-heavy adverse credit.

Rates begin from 0.85% per month for loans priced between £50k and £1m. As standard, Keystone will lend up to 70% LTV, rising to up to 75% by referral. It should be noted that there is no price differentiation between individuals and limited company applicants.[1]

Keystone announces new range

‘Brokers looking for a swift deal should be delighted with the range,’ observed David Whittaker, managing director of Keystone. ‘Lending decisions can be made within hours if needed and funds can be released in five working days or less. There are no exit fees and brokers will be paid a fee of 0.5% of the loan amount on the day of completion,’ he added.[1]

[1] http://www.propertyreporter.co.uk/finance/new-short-term-finance-range-launched-for-landlords.html

High Street Bank Mortgage Approvals Rise

Published On: August 27, 2015 at 9:49 am

Author: Em Morley

Categories: Finance News

Tags: Chinese financial crisis,high street bank mortgages,interest rate rise,mortgage approvals,mortgage rates

High Street Bank Mortgage Approvals Rise

Mortgage approvals by high street banks for residential property purchases increased by 11% annually in July.

The British Bankers’ Association (BBA) reports that there were 46,033 approvals for house purchase loans.

There was also a 29% annual rise in remortgage approvals, to 24,400, according to the BBA. This is the highest number for four years, as borrowers rush to switch to new deals ahead of the imminent interest rate increase.

Both figures were up on June’s numbers, with overall approvals at 77,451 in July, from 76,104.

Additionally, the UK mortgage market has been given a boost by the Chinese financial crisis.

Chief Economist at the BBA, Richard Woolhouse, comments: “In July, people were concerned about an interest rate rise and I think this led to a rush in remortgaging.

“Everything that has happened in China this week puts the likelihood of that rise back two to three months.

“But even if rates do go up in the near future, I don’t think mortgage rates will go up as much and in any case, this won’t impact much on people’s decision to buy a house.”¹

¹http://www.propertyindustryeye.com/mortgage-approvals-by-high-street-banks-jump-up/

Mortgage Lending to Hit £286.8bn by 2019

Published On: August 18, 2015 at 8:52 am

Author: Em Morley

Categories: Finance News

Tags: gross mortgage lending,Mortgage lending,mortgage rates,rising interest rates

Mortgage lending will grow in the next four years, predicts a report by Timetric, which states that wider economic recovery, a rise in house building and demand-based incentives for the purchase of newly built properties will cause a healthier appetite for buying.

Mortgage Lending to Hit £286.8bn by 2019

The report says that the fastest growth in mortgage lending will be in 2017, with an estimated rate of 11.7%. This is mostly due to the Office for Budget Responsibility expecting to see the largest rise in UK house prices over this period.

Timetric forecasts a total of £218.6 billion in gross lending in 2015, before growing to £241.6 billion in 2016 and hitting £286.8 billion in 2019.

However, outstanding mortgage balances are expected to grow at a slower pace. Repayments are likely to rise as stronger economic growth causes an increase in the Bank of England (BoE) base rate and therefore higher mortgage interest rates.

Outstanding balances are forecast to reach £1.33 trillion by the end of this year and £1.39 trillion by 2019.

An analyst at Timetric, Ben Carey-Evans, says: “Rising interest rates, combined with reduced growth in the UK housing market, is set to stunt increases somewhat from the 15% and 22% rates seen in 2014 and 2013 respectively.

“Improving economic conditions, however, particularly the continuation of improving real wages – due to extremely low inflation – should see gross lending rising at a steady rate up to 2019.

“Growth in the mortgage market will be supported by rising house prices necessitating larger value loans and regional variations in house prices will continue to influence the distribution of mortgage lending.”¹

¹http://www.propertyreporter.co.uk/finance/mortgage-lending-to-reach-2868bn-by-2019.html#.VdHzyLYLkOU.twitter

Summer Mortgage Lending Picks Up

Published On: August 13, 2015 at 9:51 am

Author: Em Morley

Categories: Finance News

Tags: home purchase loans,Mortgage lending,mortgage levels,mortgage rates

Summer Mortgage Lending Picks Up

House purchase loans rose substantially in June, up 22% on the previous month, according to the Council of Mortgage Lenders (CML).

However, the overall figure of 61,000 house purchase loans was down 1% on June last year.

Mortgage lending to home movers increased by 21.1% on the month, but just 0.3% on the year.

Loans to first time buyers also rose by 22% on a monthly basis, but were down 2.4% annually.

Contrastingly, remortgaging figures were up 31% in June and rose 34% over the year. Buy-to-let loans also rose 40% on the year and 17% monthly.

In total, in the second quarter (Q2) of this year, there were 160,100 house purchase loans, up 21.6% on Q1, but 7.7% down on Q2 2014.

Mortgage rates up ahead of interest rate rise

Published On: August 5, 2015 at 3:59 pm

Author: Em Morley

Categories: Finance News

Tags: interest rates,mortgage rates,rent rises

As a result of Bank of England indications that interest rates are set to be elevated, possibly from the beginning of 2016, a number of lenders have already begun to increase their mortgage rates.

Rises

An investigation by comparison website MoneySuperMarket indicates that since Bank of England Governor Mark Carney’s remarks on potential rate rises, a number of previously desirable mortgage deals have become less inviting.

First Direct for example offered a 1.49% rate on its two-year deals at the beginning of 2015, but their best rate now stands at 1.69%.[1]

With this said, data from the report suggests that there are still a number of great mortgage rates available. Additionally, 65% LTV mortgages were found to be typically cheaper than 60% LTV mortgages.[1]

Value

At present, the average 60% LTV rate for fixed, discount and variable mortgages is 2.23%, with the average 65% LTV rate at 2.08%.[1]

Mortgage rates up ahead of interest rate rise

Dan Plant, consumer expert at MoneySupermarket feels that it is, ‘prime time for those looking for a mortgage as there are still some great deals on the market even if it’s a bit bizarre that you can currently get a cheaper deal with a smaller deposit.’[1]

‘However, the recent rate rise speculation is starting to make providers cautious, and this is being reflected in their offers. We know choosing a mortgage can be confusing but if people can do it now, they avoid the risk of rates rising over the next few months,’ he continued.[1]

Plant also said that, ‘many lenders allow mortgage holders to reserve rates available now for up to six months for a small fee, so even those who still have some time left on their current deal can benefit.’ Concluding, he warned that, ‘as always, prospective buyers need to think about the long term and work out the total cost of the mortgage, including both rates and fees, before committing to deal.’[1]

[1] http://www.propertywire.com/news/europe/uk-mortgage-interest-rates-2015080510826.html

HSBC announces new mortgage products

Published On: July 30, 2015 at 4:08 pm

Author: Em Morley

Categories: Finance News

Tags: HSBC,mortgage rates,mortgages

HSBC has today become the latest provider to announce changes to its residential mortgage range.

Following new products revealed yesterday by TSB, the lender has cut rates by as much as 0.4%.

Changes

The fresh product range includes a new two-year fix at 1.69% for as much as 70% LTV, down from 1.74%. Also, there will be a continuation of a two-year discount rate at 0.99%, which will be available from 60% LTV.[1]

Other additions to the new range include two year fixes at 60% LTV at 1.89% and 70% LTV from 2.69%. The Bank’s three year fix at 85% LTV now begins from 3.09%, with its five year fix reducing from 3.44% to 3.29%.[1]

Agreement

Additionally, the bank has agreed a deal with London and Country that will see the mortgage broker offer HSBC’s full residential mortgage range to their brokers from 3^rd August. The move comes after another successful partnership with Countrywide, which began last year.

Tracie Pearce, Head of Mortgages at HSBC, said, ‘we are committed to helping customers take their first step onto, or move up, the property ladder and these new lower rates will be welcome, as will the news that we are making these rates available to more people.’[1]

‘This is an exciting time for HSBC and we look forward to working closely with London and Country. We believe our products will resonate with their customer base, enabling even more customers to benefit from our range of products. It is entirely due to our successful partnership with Countrywide which has enabled us to extend our relationship to London & Country, and we’re committed to continuing to build on this as we welcome new broker partners,’ Pearce added.[1]

HSBC announces new mortgage products

Appeal

David Hollingworth of London and Country also said, ‘We’re sure that the broad range of competitive HSBC mortgage deals will carry significant appeal for our advisers and their clients. HSBC has shown its commitment to UK mortgage borrowers through the sharply priced products it has delivered time and again. That, coupled with our award winning advice, is sure to add up to a compelling proposition for our customers.’[1]

‘Given the appetite of HSBC, the successful completion of this next phase should pave the way for a broadening of access to other members of Legal & General’s distribution.’[1]

[1] http://www.propertyreporter.co.uk/finance/hsbc-cuts-its-fixed-rates-by-up-to-04.html