Leading the new portfolio management team is Baily, who joins as head of portfolio management from Secure Trust Bank.

She is tasked with leading the strategic management and oversight of existing borrowers. Baily spent almost nine years in senior relationship roles at Secure Trust Bank, and more than eight years in similar property-focused posts at Barclays Corporate Banking.

Smith joins as portfolio manager, focused on the ongoing management and review of existing borrowers.

He also joins from Secure Trust Bank, where he spent more than four years as a relationship support specialist and relationship support manager, leading a team responsible for the origination of deals in the real estate sector.

Prior to his last role, Smith previously held a variety of relationship management roles at Lloyds Bank.

Commenting on the appointment Baily said: “HTB understands the importance of relationship management and expects the highest standards, which is what attracted me to this role.

“I’m excited for the challenge of leading the portfolio team at a bank with such a great reputation.”

The post HTB expands with two senior hires appeared first on Mortgage Strategy.

In a survey of 160 letting agents carried out by Goodlord, 75% of respondents said they didn’t think the government understood the pressure facing the sector.

A further 19% weren’t sure. And just 6% said they thought the government truly understood the challenges the market is facing.

This poll follows a lacklustre Budget where housing barely featured and ongoing delays and uncertainty around the Renters (Reform) Bill.

Goodlord managing director of insurance Oli Sherlock commented: “Given the delays, confusion, and rotating cast of housing ministers over recent years, it’s no surprise to see that the majority of agents have little faith in this government’s grip on the challenges facing the housing and letting market”.

He added: “Landlords are under pressure, agents are contending with increasingly complex legislation, and tenants are fighting to secure homes. All stakeholders deserve more joined up thinking and a long-term, bipartisan plan if we want renting to be done right.”

The post Govt not understanding PRS and housing pressures: Goodlord appeared first on Mortgage Strategy.

Market insight from Monta Capital, the property investment manager, reveals that 85% of tenants in the UK are renting through necessity, unable to afford to buy their own home.

Monta Capital recently surveyed 1,586 UK renters to find out whether renting was, for the majority of people, a lifestyle choice or necessity.

The results reveal that many tenants have been renting for a long time. Some 24% of respondents have been renting for 6-10 years; 22% have been renting for 10-15 years; 13% have been renting for up to 20 years; and 20% have been renting for more than 20 years. 

While renters are renting for long-periods of time, very few appear to do so through choice. Indeed, 85% say they are renting through necessity, with just 15% saying that rent is a choice. 

The overall cost of renting was cited by 33% as their biggest concern. 

An even more common pain point is the lack of security provided to renters through short tenancy agreements, with 35% saying the chance that their landlord will turf them out for no good reason is the worst part of renting. 

As such, 41% of renters insisted that the best way to improve the renting experience would be for landlords to offer longer tenancies thus giving people far more security in their home.

However, despite the drawbacks, tenants do attest to enjoying some aspects of the rental lifestyle.

At the top of this list, as cited by 31% of tenants, is the ability to live in a home or an area that they would not be able to afford if buying a home.

Of those surveyed 26% said they appreciated the benefit of being able to avoid the debt of a mortgage, and 24% cited the flexibility of renting as its biggest perk, free as they are to move to a new place with relative ease and freedom. 

When renters are asked if they have any plans to one day buy their own home, 43% say no. And by far the most common reason why they have no plans to buy a home is because they can’t see themselves ever being able to afford it (70%).

Of the 57% who say they do have ownership aspirations, 19% say it will be up to 10 years before they think about doing so, and even then, less than 60% (59%) believe they’ll actually be able to achieve home ownership within this timeframe.

Commenting on the survey’s findings Monta Capital chief executive Thomas Balashev said that there needed to be more developers and public stakeholders willing to create rented homes with the same level of respect they do for-sale homes. 

“Currently, rented homes are not held to the same high standards that for-sale homes are where quality directly impacts value. Instead, the only metric in delivering rented homes is the price point. 

“We should also be looking seriously at creating longer tenancies in order to give renters the security they desire and deserve. To this end, we would love to see government legislation move with the times and push for the provision of longer tenancies”. 

Not only would this benefit tenants, Balashev argued, but it would also be a huge boon for property investors.

“For residential investors, not least in the build-to-rent sector, a building that has tenants signed up for five or seven years provides much more investor security than a building where tenants only sign up for a year at a time,” he concluded.

The post 85% of tenants have no option other than to rent: Monta Capital appeared first on Mortgage Strategy.

Available to all applications received by 27 March, the promotion will apply on all loans within £10m, with Glenhawk covering up to £3,000 (inc VAT) in legal and valuation fees for new unregulated product requests.

This initiative has been launched in direct response to market feedback and is aimed at reducing upfront costs for borrowers.

This is the third promotion of this type Goldhawk has offered borrowers in the past 18 months, in terms of reducing valuation charges, but the first time that the company is eliminating upfront costs up to £3,000 (inc VAT).

The savings is expected to benefit property investors, developers and homeowners, who continue to face a challenging financing environment for acquisitions and refurbishment projects.

Last month, the company also overhauled its unregulated and regulated product range. This included reducing rates across the board with unregulated products starting from 0.83%, increasing the LTV on its regulated product to 75% and maximum loan size to £2m.

Additionally, exit fees were removed for Glenhawk’s heavy refurbishment product, as well as a newly launched mixed residential product for mixed use assets with more than 50% residential.

Commenting on the latest changes Glenhawk chief executive Guy Harrington said: “Reducing upfront costs will support residential investors and developers in their transaction journeys, while speeding up housing market transactions and project delivery.”

He added: “The general feedback from our broker network and their borrower base has been that valuation and legal fees remains a considerable cost and we will put the interests of our clients first wherever we can in the current macroeconomic environment. We are witnessing a continued recovery in transaction volumes, as demand for competitive financing solutions remains robust.”

The post Glenhawk cuts valuation and legal fees on unreg range appeared first on Mortgage Strategy.

The changes mean that loans up to 90% LTV will have a maximum loan amount of £1.25m, and loans up to 85% LTV will have a maximum loan amount of £2m. Increasing from £675k and £1m respectively.

The changes in detail:

.            Maximum loan for loans up to 90% LTV increased from £675k to £1.125m

.            Maximum loan for loans up to 85% LTV increased from £1m to £2m

.            Maximum loans for new build properties will stay at £1m at 85% LTV and £675,000 at 90% LTV.

Commenting on the loan enhancements Metro Bank director of mortgage distribution Charles Morley, said:

“Today’s changes will support those higher earning customers who are borrowing £1m or more but may have a smaller deposit than many more mainstream products might allow. Ultimately providing greater flexibility and choice for the customer while also ensuring the health and vitality of the mortgage market.”

The post Metro Bank increases max LTV amounts appeared first on Mortgage Strategy.

The near-term outlook is still cautious, in part due to the suspicion that the recent easing in mortgage rates is likely to stall on the back of ongoing uncertainty about the timing and speed of interest rate reductions.

At the UK level, new buyer enquiries stayed positive for the second successive month (6% net balance) showing a continued upwards trend in buyer demand.

Looking at regions across the UK, most have now shown a recovery in buyer interest over the last two months.

Agreed sales were flat in February (-3% net balance) and although this is less positive than in January it still signals a stronger trend in sales than was evident in most of the last 12 months (average net balance of -22%).

Looking ahead, the sales expectations for the near term are positive, and sales activity is expected to gain further momentum over the coming year (net balance +42%) In addition, respondents across all UK regions/countries foresee residential sales activity picking up over the longer-term time horizon.

One of the more noteworthy developments to come through in the February survey was a solid rise being reported in new instructions to sell. The latest net balance of +21% represents the strongest reading since October 2020, in contrast to the continuously negative picture cited throughout 2023.

Average stock levels on estate agents books now sit at 42 properties, the highest since February 2021, with respondents noting an increase in market appraisals over the month relative to the same period last year.

House prices still point to a downward trend across the UK as a whole, but this is stabilising with the February figure the least negative since October 2022.

In London, the turnaround in the price indicator is slightly more pronounced. Looking ahead, a net balance of +36% of respondents across England and Wales now envisage house prices returning to growth at the twelve-month time horizon.

In the lettings market, tenant demand continues to rise but at a rather more modest pace than previously. At the same time, however, landlord instructions are still dwindling, meaning respondents envisage rents moving higher over the coming months albeit at a slower rate.

Rics chief economist Simon Rubinsohn commented: “The February RICS survey provides some grounds for encouragement around the sales market with not just buyer interest staying positive for the second successive month but also the uplift in new instructions to agents.

“Whether the increase in stock coming back to the market will be sustained is likely to be a critical factor in explaining how things play out over the balance of the year especially with new build likely to remain constrained. Significantly, the rise in the number of appraisals taking place points in the right direction. And the government will be hoping that this trend is given a boost by the change to CGT announced in the Budget”.

He added: “Meanwhile, there are signs that the relentless upward trend in private rents is losing momentum but fresh demand is still comfortably outstripping supply in this area which suggests there is unlikely to any significant relief for tenants. Indeed, feedback from respondents to the survey continue to highlight the challenges in the sector resulting from a whole host of measures introduced in recent years.”

Former RICS residential chairman and London estate agent Jeremy Leaf said the findings of the latest RICS survey chimed with some of the other ‘push-me-pull-you’ reports seen recently.

“One month up a bit, the next down a bit – it’s a pattern likely to be repeated over the next few months.”

He added: “In our offices, we noticed considerable hesitation among buyers and sellers as the Budget approached. Many were hoping for a few goodies to be thrown their way, which would have made the whole process more financially attractive. However, the Budget has been and gone with precious little to incentivise as the Chancellor probably hopes that growing optimism means he had no reason to further stoke demand”.

The post Housing activity positive from buyers and sellers: Rics appeared first on Mortgage Strategy.

Thorne joined KSEYE in 2012, beginning his time at the company as a case manager before moving to a telephone business development manager role in May 2023.

Discussing his promotion, Thorne said: “I’m excited by the opportunity to be more hands-on in meeting and establishing long-lasting relationships with brokers throughout the South of England and South Wales.

“My experience as a case manager, working closely with our underwriters, has given me an appreciation of how complex bridging loans can get, and the importance of keeping strong communication with brokers throughout the process.”

He added: “I’m looking forward to being out on the road, putting faces to the people I’ve been working with over the last eight months, making new relationships, and helping them to deliver timely bridging loans to their clients.”

The post KSEYE promotes Thorne to BDM role appeared first on Mortgage Strategy.

The specialist lender has increased all products by 0.25%, having provided brokers with 48 hours’ notice ahead of the withdrawal of its previous pricing.

As part of this product release, Pepper Money has added free valuations to its Retention range. These products are in addition to their product transfer offering and give those customers whose deal has expired the opportunity to apply for a new rate or make further changes to their current mortgage, such as additional borrowing or changing the mortgage term.

Pepper Money sales director Paul Adams commented: “SWAP rates have been rising in recent weeks and we have held off responding to these changes for as long as possible, but it’s now necessary to increase rates across our range”.

He added: “We have made sure to give brokers a full 48 hours’ notice ahead of the withdrawal of our previous rates so that they are best placed to offer customers with certainty. And, while our rates have changed, our inclusive criteria and excellent service remain.”

Coventry for intermediaries is also making changes to its range.

Residential mortgages  for new borrowers with Coventry:

• Closing all Fixed 80% LTV rates
• Reducing all two year fixed purchase rates at 65% – 95% LTV with fee
• Reducing all two year fixed purchase rates at 75% – 95% LTV with no fee
• Reducing all two year fixed remortgage rates at 65% – 75% LTV with no fee (Excl. Offset)
• Reducing all three year fixed purchase rates at 75% LTV with no fee
• Reducing all three year fixed purchase rates at 85% – 95% LTV
• Reducing all three year fixed remortgage rates at 85% LTV with fee
• Reducing all five year fixed purchase rates
• Reducing all five year fixed remortgage rates at 65% – 75% LTV
• Reducing all five year fixed purchase interest-only and offset interest-only rates
• Reducing all five year fixed interest-only and offset interest-only rates

For existing borrowers there are no changes to the range.

Buy to let and portfolio buy to let.  

For new borrowers:

• Reducing all two-year fixed purchase rates
• Reducing all two-year fixed remortgage rates with no fee
• Reducing all five year fixed rates

Existing Borrowers

• No changes to range

Closures will come into effect from: 8pm Thursday 14 March

Commenting on these specific changes, John Charcol mortgage technical manager Nicholas Mendes said: “This latest reprice from Coventry is welcomed news considering the current typically rate increase notification from lenders past few weeks. But to keep it in perspective Coventry don’t sit within in the best buys so any reprice is unlikely to change the dynamics amongst the leading rates”.

The post Pepper Money and Coventry reprice product ranges appeared first on Mortgage Strategy.

This is according to the FCA Mortgage Lending statistics for Q4 2023, which also showed the value of gross mortgage advances decreased by 13.4% from the previous quarter to £54bn and was 33.8% lower than a year earlier.

The lates figures also revealed that the value of new mortgage commitments (lending agreed to be advanced in the coming months) decreased by 6.6% from the previous quarter to £46bn and was 21.2% lower than a year earlier.

If the onset of the Covid-19 pandemic is excluded, this was the lowest figure since 2013 Q1.

Commenting on the FCA’s numbers Perenna chief executive Arjan Verbeek said: “Another significant year-on-year decline in both gross mortgage advances and new mortgage commitments – a sign of future lending – reflects how the market is not fit for purpose under the current restraints, nor suited to the needs of aspiring homeowners.

“Affordability is a major issue for home ownership, as most of the available mortgage options for borrowers, typically short-term fixes that revert to higher rates after two to five years, are pricing many aspiring first-time buyers out of the market. Our research shows that the painful experience of securing a mortgage is actually putting off two in five first-time buyers from pursuing homeownership”.

Verbeek suggested a lack of support from the Spring Budget last week with no other effective alternatives put on the table made it feel like the government had given up.

“If we want to see a healthy mortgage market which props up the UK economy, attracts new homeowners, and makes the prospect of owning a home an affordable reality, more needs to be done to restructure the market and provide workable alternatives, such as long-term fixed rate mortgages.”

The post FCA data shows mortgage market not fit for purpose: Perenna appeared first on Mortgage Strategy.