Посты с тэгом: remortgages

Lender competition leading to remortgaging surge

Опубликовано: August 3, 2017 в 9:41 am

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Категории: Finance News

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New data released by LMS has revealed strong competition between lenders looking to offer the best rates has led to a recent surge in remortgage activity.

21% of remortgagors lowered their total overall mortgage payments in June, a rise from the 15% in May and the greatest number since December 2016. 84% lowered their mortgage rate during June – a rise from 82% in May.

Homeowners

The volume of homeowners remortgaging rose for the second straight month. 35,913 remortgaged during June, in comparison to 32,600 in May – a rise of 9%.

Annually, the number of people remortgaging increased by 10%, from the 32,300 seen in June 2016.

Andy Knee, Chief Executive of LMS, commented: ‘The remortgage market had an excellent month in June. More homeowners saved on their monthly repayments by remortgaging in June, compared to May. This was driven by the intense competition between lenders, many of whom have been offering mortgage products with rock bottom rates to entice remortgagors to switch.’[1]

In addition, there was a large rise in the number of remortgagors expecting a rate rise during June. 47% of remortgagors believe that rates will increase during the next year, up from 40% in May. In fact, this was the highest rate since February.

OLYMPUS DIGITAL CAMERA

Lender competition leading to remortgaging surge

Rate Rises

Mr Knee went on to say: ‘In June, the market was bracing itself for a rate rise – there was considerable speculation that the Monetary Policy Committee was going to increase rates in the foreseeable future. Remortgagors thought the tide was about to turn, with a greater number expecting a rate rise in the next twelve months.’

‘This fuelled the ongoing shift to fixed five-year deals, but half way through July, inflation fell to 2.6% from 2.9% the month before. It was the first rate drop in the annual rate since October. Economists had expected it to remain at 2.9% – a four year high. That decline eases pressure on the Bank of England to raise interest rates and we’ll have to see how this plays out with remortgagors in July’s Remortgage Report.’[1]

[1] http://www.propertyreporter.co.uk/finance/remortgage-surge-attributed-to-lender-war.html

 

New mortgage range launched at Accord

Опубликовано: February 16, 2016 в 12:30 pm

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A new mortgage range has today been announced at Accord Mortgages.

The firm has brought in a new five-year fixed rate residential range. This includes the option of extra incentives on selected products.

Options

This new range is available to borrowers with a 25% or 20% deposit and all come with a fee of £845. The range is available for purchase or remortgage and comes with reductions of up to 0.65% on currently available five-year options.

Products start from 2.49% at 75% LTV, rising to 3.39% up to 90% LTV.

New mortgage range launched at Accord

New mortgage range launched at Accord

Those borrowers looking to buy a home with a 5% deposit can get a 4.49% five-year fixed rate mortgage. This is available with no product fee and £750 cashback on completion and free standard valuation. Additionally, first-time buyers will get a further £500 cashback on completion, bringing the total cashback on offer to £1,250

What’s more, there are also reductions on Accord’s three-year fixed mortgage range, with incentives for those able to raise a 20% or 25% deposit.

Value

David Robinson, National Intermediary Sales Manager at Accord, said, ‘we are always looking at ways to offer borrowers value for money and we believe that these mortgages will prove very attractive to those customers who are looking for a competitive rate with the security of knowing what the exact repayments will be for the next five years.’[1]

‘We believe these changes provide borrowers with a wide range of competitive options and will prove extremely popular with brokers,’ Robinson added.

 

 

96% of homeowners chose to fix last month

Опубликовано: October 29, 2015 в 9:15 am

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Fresh data from the Mortgage Advice Bureau shows that 96% of homebuyers choose to fix during September. This was the second successive month that this figure was achieved, which in turn pushed the popularity of fixed mortgages to new record high.

Borrowers are becoming more motivated to lock into fixed rate deals whilst the mortgage pricing remains at such a low.

Deals

In comparison, just 91% of homebuyers chose a fixed rate between February and April this year. More savvy homeowners are looking to secure rates in larger numbers, with 92% of remortgage customers fixing rates in August and September. This is the highest proportion recorded since June 2014, when 93% chose to fix.

There were increases in the average mortgage pricing across two and five year fixed rates and two-year tracker rates. The average two year fixed rate increased from 2.68% in August to 2.72% in September, marking the first rise after 12 months of consecutive lows. Five year rates also increased for the first time since August 2014.

Despite rising between August and September, two year fixed rate pricing remained the most improved over the previous year. Borrowers looking for a short-term two year fix in September found the average rate more than 1% lower than it was twelve months previously, allowing them to make substantial savings on their repayments.

96% of homeowners chose to fix last month

96% of homeowners chose to fix last month

Products

Additionally, the total number of mortgage products available rose to a new record level in September, with 16,465 recorded. This represented a rise of 4% in August and a 36% year-on-year increase.

The head of lending at the Mortgage Advice Bureau said, ‘sooner or later, the predictions of an interest rate rise are going to become a reality and some lenders have started to act ahead of this to ensure they are not short changed. Borrowers should not be too alarmed by September’s jump in pricing, as there was only a slight increase and three year fixed rates continued to fall. All the same, it is a timely wake-up call that these rates are not here to stay forever.’[1]

Anyone in a position to buy or remortgage should consider making the most of the competitive pricing and thousands of products currently available. There are clear signs in the latest data that an increasing number of borrowers are cottoning onto the trend,’ they added.[1]

[1] http://www.propertyreporter.co.uk/finance/rising-rates-push-96-to-fix.html

 

 

Homeowner Purchase Lending Up 16% in March

Опубликовано: May 27, 2015 в 10:03 am

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Last week, the Council of Mortgage Lenders (CML) revealed new figures on the lending market in March and the first quarter (Q1) of 2015, split up into trends for first time buyers, home movers, remortgages and buy-to-let.

Director General of the CML, Paul Smee, says: “It was a slow start to activity in the first couple of months of 2015, but the market started to get out of the dip in March, a trend that we think will continue as the year goes on.

“We will have to wait and see how the housing market reacts to the general election result and the reduction in the risk of a prolonged period of market uncertainty which could well have been damaging to businesses and the housing market.”1

Gross mortgage lending hit £16.1 billion in March, an 18% rise on February’s total and 5% more than lending in March 2014. Gross lending for the whole of Q1 2015 was £44.5 billion, down 13% on Q4 2014 and a year-on-year decline of 4% on Q1 2014.

Homeowner house purchases

Lending for homeowner house purchases grew monthly in volume to 48,200 in March, a 16% rise on February, but a 4% decrease on March 2014. These loans reached £8.2 billion, up 17% on February and 4% annually.

In Q1 2015, loans advanced to homeowner for house purchases totalled 131,800, a 24% drop on Q4 2014 and 11% down on Q1 2014. These loans were worth £22.4 billion, down 23% on the previous quarter and a 5% fall on a yearly basis.

First time buyer purchases

First time buyers borrowed an average 3.36 times their gross income in March this year, the same as February. The typical loan size rose monthly to £123,290 in March, up from £122,285 in the previous month. The average gross income of a first time buyer household increased slightly to £38,500 in March from £38,085 in February.

First time buyers paid 18.8% of their gross income towards capital and interest payments in March, down from 19.1% in February, and much less than the peak seen in December 2007 of 24.8%.

In quarterly terms, first time buyers borrowed 3.37 times their gross income in Q1 2015, down from 3.38 in Q4 2014.

Homeowner Purchase Lending Up 16% in March

Homeowner Purchase Lending Up 16% in March

The average loan size for this type of buyer also dropped to £122,794 in Q1 2015 from £124,450 in Q4 2014. The typical gross income of a first time buyer household fell marginally to £38,139 from £38,324 in the previous quarter.

In Q1, first time buyers paid 19% of their gross income towards capital and interest payments, down from 19.2% in Q4 2014.

Home mover lending

Home movers were advanced mortgage loans 3.07 times their gross income in March, a slight rise from the 3.06 seen in February. The average loan size for home movers was £160,615 in March, up from £157,730 in February. The gross household income of a typical home mover was £54,135 in March, up from £53,514 in the previous month.

Home movers spent 18.3% of their gross income on monthly capital and interest payments in March, down from 18.5% in February and much lower than the 23.8% seen in December 2007.

In Q1 2015, home movers borrowed 3.06 times their gross income, a slight rise from 3.03 in Q4 2014. The average loan size also increased to £158,440 from £153,500 in the previous quarter. The typical gross income of a home mover household grew to £53,554 from £53,173.

Home movers paid 18.5% of their gross income on capital and interest payments in Q1, up from 18.4% in Q4 2014.

Remortgages

Remortgage lending rose monthly in March, with 26,600 loans advanced, up 19% on February and a 6% increase on March 2014. The value of these loans reached £4.2 billion, a 24% monthly rise. Annually, this was up 14% on March 2014.

In Q1 2015, remortgage lending grew 3% on the previous quarter to reach 75,400 loans. This was down 5% on the same quarter in 2014. The value of these loans also rose quarterly by 6% to £11.8 billion, up 2% annually compared to Q1 2014.

Buy-to-let lending

In March, 18,200 buy-to-let loans were advanced, a 12% increase on February and 21% up on March 2014. These loans reached a total of £2.7 billion, up 13% on February and 35% year-on-year.

The amount of buy-to-let loans for home purchases was 8,600 in March, an 8% rise on February and 13% higher than March 2014. These loans were worth £1.2 billion, a 20% monthly increase and 33% annual growth.

The number of buy-to-let remortgages rose 15% in March from February, hitting 9,400, a 29% increase on March 2014. The value of these loans was £1.4 billion, an 8% monthly rise and 27% growth on March 2014.

Q1 2015 saw buy-to-let lending accounting for 18% of all lending in the UK, the highest percentage of gross lending since quarterly records began in mid-2006. This was caused by a drop in remortgage and house purchase loans.

52,300 buy-to-let loans were advanced in Q1, down 3% on Q4 2014 but a 15% increase on the same quarter in 2014. These loans were worth £7.8 billion, up 1% on Q4 2014 and a 28% rise yearly.

Within this, 24,440 loans were for buy-to-let home purchases and the amount of loans for buy-to-let remortgages was 27,370, down 8% and up 2% correspondingly compared to Q4 2014. In Q1 2015, these buy-to-let loans rose 6% for house purchases and 23% for remortgages.

Loans for buy-to-let property purchases were worth £3.3 billion, down 8% on Q4 2014, but up 6% on Q1 2014. Buy-to-let remortgage loans stayed at £4.2 billion, an annual rise of 29%.

1 http://www.cml.org.uk/cml/media/press/4205

 

 

 

 

 

New remortgage products for HTB tenants

Опубликовано: May 12, 2015 в 11:33 am

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Категории: Property News

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Homeowners who utilised the Government’s Help to Buy scheme have been buoyed with an announcement from Leeds Building Society.

The Society has launched two remortgage products specifically aimed at buyers who used the scheme to purchase their property. After being the first lender to allow remortgage applications from Help to Buy homeowners, the firm has now extended its range.

New rates

The additional products are a two-year fixed rate Help to Buy product at 2.44% and a five-year fixed-rate deal of 3.14%. These new products are available up to 75% LTV and arrive with fees assisted legal services for standard remortgages.[1]

Alongside these new deals, Leeds Building Society still over their existing Help to Buy mortgages, which are available for remortgage and also home purchase. The deals are:

A two-year Help to Buy mortgage at 1.99%

A two-year fixed rate Help to Buy mortgage at 2.34%

A five-year fixed rate Help to Buy mortgage at 2.99%

New remortgage products for HTB tenants

New remortgage products for HTB tenants

These mortgages are also available up to 75% LTV. Furthermore, all of the society’s Help to Buy mortgages and remortgages are equipped with a low £199 fee.[2]

Better deal

Mark Richardson, General Manager for Business Development at the society said that, ‘the first homeowners who bought under the Help to Buy equity scheme are now coming to the end of their mortgage deals and have their first opportunity to switch to a better deal.’[3]

Mr Richardson went on to state that, ‘mortgage rates are at historic lows at present and the average two year fixed rate mortgage available now is lower than when the Government launched the scheme in March 2013 so borrowers can save themselves some money by switching to a more competitive deal.’ Additionally, he commented that by, ‘minimising the upfront costs of our Help to Buy remortgages assists the type of customer the scheme was introduced for and, unlike some lenders, Leeds Building Society does not differentiate between first time buyers and home movers and our main Help to Buy range is available to both.’[4]

 

[1-4] http://www.propertyreporter.co.uk/finance/leeds-bs-launches-two-new-remortgage-products.html

 

Increasing Number of Loans Offered to Landlords

Опубликовано: May 21, 2014 в 3:30 pm

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Категории: Finance News

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Recent lending figures released by the Council of Mortgage Lenders (CML) indicate that the number of buy-to-let loans forwarded in March were a substantial 56% up on the same time last year.

Increasing Number of Loans Offered to Landlords

Increasing Number of Loans Offered to Landlords

In the same research, the CML showed that borrowers advanced 16,200 loans in March 2014, in comparison to 10,400 last year. The total value of these loans was £2.2 billion this year, up 69% from the £1.3 billion in 2013.[1]

Loan increases

Loans advanced for house purchases were up 17% on 2013. The total value of these house purchase loans in March was £8bn, an increase of 27% from the £6.3bn advanced last year.[1]

Of these loans, 24,400 were awarded to first time buyers, an increase of 24% from the same period one year ago. Lending for home movers meanwhile totalled 26,100 this year, a rise of 11% from the 23,500 last March.[1]

Remortgage loans also increased, showing a rise of 5% year-on-year. By value, remortgage loans rose by 16% to £3.6 billion.[1]

Positive

Director General of CML Paul Smee was buoyed by the report findings. He said: “All types of lending show positive year-on-year growth but the rate of increase is not as frenetic as at the end of 2013. Buy-to-let lending continues to recover and regain market share.

“The FCA’s [Financial Conduct Authority] new regulation of mortgages has now been introduced but it will still be some time until we can assess its effect on the market. The industry was ready for the transition and already actively implementing many of the changes prior to April. We do not anticipate prolonged disruption to the market as a consequence.

“But we still see affordability constraints as an important factor in determining the level of demand for mortgages which we see over the next year.”[1]

[1] http://www.mortgagestrategy.co.uk/news-and-features/sectors/buy-to-let/buy-to-let-news/loans-to-landlords-increase-56/2010267.article