mortgages
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Latest property news
Crying game? Mortgages driving first time buyers to tears
It’s fair to say that applying for mortgages is few people’s idea of fun, but can the process ever drive them to tears? It can, according to research among home owners by mortgage broker Trussle, which has discovered that 8% of all first-time buyers get teary-eyed while attempting to get their first mortgage, or 27,000 people every year. The research also found that 9% of first time buyers had been discouraged during the process of buying their property because they had felt getting a mortgage was an ordeal, while nearly a quarter of first-time buyers are forced to time off work to sort out their mortgage application. This equates to 77,740 people last year. Stressful Also, 23% of the 2,000 people quizzed during the research said the experience of getting a mortgage was stressful, while many found making a mortgage application to be “opaque and time-consuming”. This is also persuading many people to stay put with their existing lender rather than switch provider and remortgage, says Trussle. It reckons there are two million people on Standard Variable Rate mortgages who could save thousands of pounds a year if they were to switch to a mortgage with a more competitive rate.…
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Features
Finding the funding
The housing market is steady, if not flying, but funding is challenging for many buyers, delaying sales, says Sheila Manchester.
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Latest property news
First-time buyer frenzy
First-time buyer activity rose to 36 per cent of market activity in February...
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Latest property news
CML predicts fewer buy-to-let property purchases in 2017
The Council of Mortgage Lenders (CML) says the number of houses bought by landlords next year is likely to fall as several headwinds reduce demand for buy-to-let property. This includes the recently-introduced additional 3% Stamp Duty for buy-to-let purchases, the Prudential Regulation Authority’s buy-to-let lending stress tests starting on January 1st, and the new and less generous tax allowances for landlords, which kick off in April next year. Consequently, CML director general Paul Smee (pictured, below) says that although the overall mortgage market is resilient and will ‘plateau’ during 2017, buy-to-let lending is to likely to decline. The CML predicts that total lending for all types of mortgages in 2017 will be £248 million, approximately the same as 2016, before increasing in 2018 to £252 billion. But lending for new buy-to-let purchases is to decline in both 2017 and 2018, it says. “We expect any modest strengthening in home-owner lending to be rather offset by a less active house purchase market in buy-to-let, as both tax and regulatory changes bite on landlords,” says Paul. But lending is not the only dial on the buy-to-let market to be going down. Lender Landbay says average UK rental growth during 2016 halved from 2.34% to…
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Latest property news
FCA to investigate mortgage lending via estate agents
Estate agents who introduce customers to in-house or third party mortgage brokers are to be investigated by the Financial Conduct Authority (FCA) as part of a new wide-ranging look at competition in the home loans market. The aim of the review is to see if customers are being offered the best deals, advice and whether links between industry players limit choice, all part of a wider government drive to reduce the cost of buying a home. There are currently 11.1 million home loans held in the UK worth £1.3 trillion, according to the Council of Mortgage Lenders. “As a mortgage is likely to be the biggest financial commitment most people make in their lifetime, we’re keen to ensure that competition in the mortgage sector is healthy and working to the benefit of consumers,” said Christopher Woolard, the FCA’s executive director of strategy and competition (pictured). This will include a close look at how estate agents, conveyancers, surveyors and developers all introduce customers to mortgage lenders or brokers. But when launching the full review the FCA singled out estate agents for criticism, saying that some customers could be coming under pressure from estate agents to use certain brokers if they want…
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Latest property news
New revenue opportunities for estate agents
ZPG adds mortgage pre-qualification data to applicant leads.
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Features
Deposits, rates and loans
Andrea Kirkby reviews the latest offerings and restrictions within the UK mortgage market.
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Latest property news
Average London couple unable to buy Starter Home until 2028
Says JLL in latest residential research findings.
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Features
Bridging loans: out from the shadows
Most agents have thanked a bridging loan for saving a sale at some point their careers. But the industry that supplies them is changing fast. Nigel Lewis talks to one of the leading lenders.
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Latest property news
HSBC quits CML
The HSBC has said that it will leave the CML by the end of 2016 as industry trade bodies get set to merge – and Barclays could follow. The bank has handed in its notice that it intends to leave the CML at the end of December – having served the requisite one year notice period. HSBC’s decision also comes after plans were unveiled in November to merge the CML with the banking industry’s other trade bodies; the British Bankers’ Association (BBA), Payments UK, the UK Cards Association and the Asset Based Finance Association. A spokesperson for HSBC said, “Given the anticipated creation of a new financial services trade association, we have given one year’s notice to the Council of Mortgage Lenders and our membership will end on 31 December 2016. HSBC supports the creation of a new trade association which will better serve all providers in the financial services sector and most importantly, our customers. We have and continue to value our work with the CML and believe a strong mortgage voice is critical within any new association.” Speculation is growing that Barclays may also hand in its notice to leave the CML. A Barclays spokesman commented, “We can…
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