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Mortgage market review - December 2018

Market Data

Mortgage market review for December 2018.

MACRO NEWS AND DRIVERS

Mortgage lending up in October: UK Finance - Latest data from UK Finance shows that gross mortgage lending grew in October on both a yearly and monthly basis. In total, lending within the residential market reached £25.5bn in October, a growth rate of 5.6 per cent when measured annually.
https://www.mortgagestrategy.co.uk/mortgage-lending-up-in-october-uk-finance/

 
First-time buyers would rather sell the family silver than use Government savings schemes to get on the property ladder - Almost two thirds of first-time buyers plan to sell one or more valuable items to get on the property ladder. A poll by The Nottingham Building Society found that 63% would sell high-priced assets such as jewellery to help buy their first home, with 14% expecting to raise more than half of the funds they need this way. The Bank of Mum and Dad is also still very much alive, with 81% of would-be first-time buyers expecting some of the funds to come from here.
https://www.propertyindustryeye.com/first-time-buyers-would-rather-sell-the-family-silver-than-use-government-savings-schemes-to-get-on-the-property-ladder/

 
More lending going to first time buyers, mortgage monitor suggests - First time buyers and existing home owners in the UK capitalised on low rates across the residential property lending market in October, the latest index report suggests.
https://www.propertywire.com/news/uk/more-lending-going-to-first-time-buyers-mortgage-monitor-suggests/

What advisers need to know about Generation Rent and protection - Despite government efforts to reduce the attractiveness of buy-to-let (BTL) property and bolster first-time buyers, more people than ever are renting.
https://www.ftadviser.com/protection/2018/11/20/what-advisers-need-to-know-about-generation-rent-and-protection/

Mortgage market softens in all major categories - A report shows that FTB completions were down 4.5 per cent on an annual basis, consisting of 29,400 new completions in September as compared to 30,800 a year ago. However, the total value for both this September and last September is the same – £5bn.
https://www.moneymarketing.co.uk/mortgage-market-softens-in-all-major-categories/

Building societies take mortgage market share - The sector also approved 31% of all first-time buyer mortgages in Q3 – 30,000 – but first-time buyer numbers are flat compared to Q3 2017.
https://www.mortgagefinancegazette.com/lending-news/mortgage-lending-figures/building-societies-take-mortgage-market-share-26-11-2018/

First-time buyers: is now the right time to get a mortgage? - Rising house prices and mortgage rate increases will mean first-time buyers in 2023 face paying £3,500 more on their home loans each year.
https://www.which.co.uk/news/2018/11/first-time-buyers-is-now-the-right-time-to-get-a-mortgage/

REGULATION AND LEGISLATION

Poll: Millennials split on Help to Buy - Fresh fears that the government’s Help-to-Buy programme has failed to help its target millennial market have been underlined today, with a new poll suggesting that young adults were the most likely group to oppose the scheme.
http://www.cityam.com/269676/poll-millennials-split-help-buy

PRODUCT DEVELOPMENTS AND INNOVATION

Leeds launches discounted BTL range - The products are offered at a rate of 1.14 per cent for up to 60 per cent loan-to-value (LTV) and 1.34 per cent for 70 per cent LTV and are expected to appeal to existing landlords looking to remortgage to a better deal.
https://www.ftadviser.com/mortgages/2018/11/21/leeds-launches-discounted-btl-range/

Barclays unveils rate cuts and new product details - Barclays has announced a series of rate reductions amid product changes and a new residential remortgage product launch, coming into effect from tomorrow, Tuesday 27 November.
https://www.mortgagestrategy.co.uk/barclays-announces-rate-cuts-product-change-and-new-remortgage-offer/

TSB reduces mortgage rates by up to 0.35% - TSB has reduced interest rates by up to 0.35 per cent on mortgages for residential, home purchase and remortgage borrowers.
https://www.mortgagestrategy.co.uk/tsb-reduces-mortgage-rates-by-up-to-0-35/

Nationwide pilots RIO mortgage product - Nationwide has announced the soft launch of a retirement interest-only mortgage product.
https://www.mortgagestrategy.co.uk/nationwide-pilots-rio-mortgage-product/

CONSUMER TRENDS

Millions of homeowners will still be paying off mortgage after retirement, research warns - A fifth of the UK’s homeowners will still be paying off their mortgage after they stop earning, according to startling new figures that reveal the legacy of interest-only loans and delayed first-time buying.
https://www.independent.co.uk/money/spend-save/mortgage-pension-retirement-house-prices-property-interest-loans-a8647681.html

Nearly half of UK wants to see 100% mortgages: YouGov - Latest polling data from YouGov shows that 48 per cent of the UK population think re-introducing 100 per cent mortgages is a good idea.
https://www.mortgagestrategy.co.uk/nearly-half-of-uk-wants-to-see-100-mortgages-yougov/

How remortgaging could save you £4k per year - Failing to remortgage could see you paying interest rates similar to those offered on a high-cost loan from the likes of Wonga.
https://www.mcdaidmortgages.co.uk/how-remortgaging-could-save-you-4k-per-year

Supersized mortgages are back: Desperate homebuyers are being offered 'irresponsible' deals worth SIX times their salaries as borrowing soars to record levels – First-time buyers are saddling themselves with record levels of debt as banks launch super-sized mortgages for up to six times people’s salaries.
https://www.dailymail.co.uk/news/article-6427491/Supersized-mortgages-back.html
 

Second steppers: Getting onto the ladder easier than climbing up – Moving up to the second rung of the property ladder is proving harder than getting onto it in the first place. That’s according to many so-called ‘second steppers’ who also admitted they were changing major life plans, such as how many children they would have, as a consequence of the difficulties they faced in selling their house.
https://www.whatmortgage.co.uk/property-news/second-steppers-getting-onto-ladder-easier-climbing/

EXPERTS CORNER

Housing Watch: Help to Buy cannot go on forever - The scheme has had an enormously positive impact on the housing market, but it is time for the new build sector to prepare for it ending.
https://www.mortgagestrategy.co.uk/housing-watch-help-to-buy-cannot-go-on-forever/