Check out the latest top 10 stories from Mortgage Strategy! This week features discussions on the potential impact of a stamp duty reduction as a ‘growth-friendly tax cut’ in the Budget. Additionally, there’s a call for the Chancellor to introduce ‘regional’ stamp duty bands. Read more:
Stamp duty reduction would be ‘growth-friendly tax cut’ in Budget: IFS
The Institute for Fiscal Studies recommends that the Chancellor prioritise cutting stamp duty over other taxes in his Spring Budget to stimulate growth. Carl Emmerson, the institute’s deputy director, emphasises that stamp duties on property and shares are particularly detrimental and should be among the first to be reduced for a growth-friendly approach to tax cuts.
Chancellor urged to introduce ‘regional’ stamp duty bands
Rightmove proposes introducing ‘regional’ stamp duty bands in the upcoming Spring Budget to aid buyers and assist first-time buyers in the South to access the housing ladder. This aligns with calls from various organisations, including the Institute of Fiscal Studies, for stamp duty reforms to boost economic growth.
BTL fixed rates fall to lowest mark since Sept: Moneyfacts
In the buy-to-let sector, fixed rates have hit their lowest point since September 2022, according to Moneyfactscompare.co.uk. Average fixed rates for two-year and five-year terms have decreased month-on-month, reaching their lowest levels since September 2022. Despite a slight decrease in overall product availability compared to the previous month, there are approximately 250 more options available than there were six months ago.
Principality Building Society relaxes criteria for non-EEA borrowers
Principality Building Society has relaxed its home loan lending policy for applicants outside the European Economic Area (EEA). Changes include offering up to 95% loan-to-value (LTV) lending for both EEA and non-EEA applicants. Additionally, residency requirements for non-EEA nationals have been reduced from three years to two years, and the visa expiry requirement has been shortened from two years to 12 months. These adjustments aim to accommodate professionals with visa considerations, such as those in high-demand specialist roles or highly skilled positions.
Treasury draws up plans for 99% mortgages: Report
The Treasury is devising a 99% mortgage scheme in preparation for next month’s Budget. Under this proposal, homebuyers would be able to make a 1% deposit on their first home, with the government providing backing for the overall loan, as reported by the Financial Times. This initiative aims to assist first-time buyers in entering the property market without the need to save tens of thousands of pounds for a 10% or 15% deposit.
Chetwood hires Allsop ahead of ModaMortgages launch
Digital bank Chetwood Financial has appointed Roselle Allsop as Director of Marketing. Allsop brings over 23 years of marketing experience in financial services, having held various senior management roles at brands like OneSavings Bank. Based in Wrexham, Chetwood is preparing to launch ModaMortgages, a specialist buy-to-let mortgage lender operating exclusively through intermediaries. Allsop will lead marketing strategies for all Chetwood brands, including ModaMortgages.
Skipton’s 100% mortgage product nets £62m in applications since launch
Skipton Building Society reports that its 100% mortgage product has accumulated £62.4 million in applications and £29.7 million in completions since its launch in May. Known as the Track Record Mortgage, this mutual offering enables tenants with a proven history of rental payments to borrow the total cost of their first property over a maximum of 35 years. Charlotte Harrison, the group’s Home Financing Chief Executive, highlights the product’s clear value in the lender’s full-year trading statement.
Virgin Money launches mortgage to make new-build more affordable
Virgin Money has partnered with Own New to offer reduced mortgage rates for new-build customers through its Rate Reducer product, available from Monday, 26th February. This initiative involves investing homebuilder incentive budgets into the mortgage upfront, typically up to 5% of the property purchase price, thereby reducing initial repayments for buyers. For instance, a new home valued at £300,000 could see its introductory two-year mortgage rate drop from 4.79% to 0.99% at 60% LTV with a £495 fee.
Echo Finance recruits at pace to support major growth plans
Mortgage brokerage Echo Finance has launched a recruitment drive to support its ambitious growth and expansion goals. Based in Yorkshire, the firm has nearly doubled its roster of brokers since July 2023, increasing from 19 to 35, and continues to actively recruit new advisors. As part of this initiative, experienced brokers Lewis Maskell and James McAdam, previously with Your Mortgage Decisions, have joined Echo’s senior management team to oversee the development of both new and existing advisors.
Hodge relaxes range of 50-plus, holiday let criteria
Hodge has broadened its lending criteria for 50-plus, retirement interest-only, and holiday let products, now including properties with features like two kitchens or flat roofs. Additionally, they’ve introduced an 85% loan-to-value option for new build flats and expanded eligibility to properties of six storeys or higher. Emma Graham, Hodge’s Business Development Director, highlights the importance of flexibility in meeting diverse customer needs amidst current financial trends.
