Keep yourself informed with the latest headlines of the week on Mortgage Strategy. Explore insights covering topics like Toni Smith’s departure from PRIMIS Network and concerns raised by Livemore and Perenna about later life lending numbers. Dive into these stories:
Toni Smith departs PRIMIS Network
Toni Smith, integral to PRIMIS Mortgage Network’s development, departs LSL Property Services. Smith, who joined at the division’s inception, held key roles, including business operations director and chief operating officer. LSL Group plans to recruit a successor while interim arrangements place sales and marketing teams under Richard Howells.
Later life lending numbers cause for concern: say Livemore and Perenna
According to the latest data from UK Finance, there were 29,060 new loans advanced to older borrowers in Q4, marking a 37.1% decrease compared to the previous year. The value of this lending amounted to £4.1 billion, reflecting a 42.4% decrease year-on-year. Additionally, 6,710 new lifetime mortgages were advanced in Q4, down by 40.1% year-on-year, with the value of this lending reaching £520 million, a decrease of 57.4% compared to the same quarter a year ago.
Inflation does not have to hit 2% before we cut rates: BoE governor Bailey
Bank of England Governor Andrew Bailey has stated that inflation does not need to reach its 2% target before the central bank considers cutting interest rates. Addressing the Treasury Committee, Bailey emphasized that waiting for inflation to hit the target is not a prerequisite for rate cuts. This comes after the Monetary Policy Committee maintained interest rates at a 16-year high of 5.25% earlier this month, aiming to curb inflation by moderating economic activity.
HSBC set to be final lender to pull sub-4% loans
Starting February 23, HSBC will raise fixed-rate residential and buy-to-let loans, likely ending sub-4% prices offered by mainstream lenders. Changes will affect various categories, including existing residential customer switching, first-time buyers, homemovers, remortgages, and buy-to-let customers.
Barclays sees new home loans tumble 25%
Barclays reported a 25% decrease in new home loans to £22.7 billion, citing subdued mortgage lending amid lower market demand. However, its overall home loan book only slipped 0.9% to £160.9 billion following its acquisition of Kensington Mortgages. The bank attributed the decline in new loans to economic conditions, including higher mortgage payments due to rising rates and increased cost of living factors.
Holiday lets to fall under tighter planning rules: DLUHC
New government proposals set to take effect this summer will empower local councils to regulate holiday lets through planning rules. Additionally, a mandatory national register will be introduced to provide local authorities with comprehensive information on short-term lets in their area. According to the Department for Levelling Up, Housing, and Communities, these measures aim to prevent the “hollowing out” of communities, tackle anti-social behavior, and safeguard residents’ ability to remain in their homes.
Mortgage demand will ‘rebound’ in 2024: EY ITEM Club
The EY ITEM Club predicts a rebound in demand for home loans this year, driven by the anticipated decrease in interest rates. Mortgage lending is forecasted to grow by 2.2% in 2024, largely attributed to the Bank of England’s expected base rate cut to 4% by year-end from the current 5.25%, as inflation eases. The influential economic unit also expects a decrease in the cost of home loans.
Lloyds sees profit jump, mortgages remain flat
Lloyds Banking Group reported a 57% increase in pre-tax profits to £7.5 billion last year, attributed to higher interest rates, while its mortgage book remained stable. The open home loans book decreased by 0.4% to £298.5 billion, and the closed book fell by 34% to £7.7 billion, primarily due to securitization of legacy retail mortgages and unsecured loans.
HSBC grows mortgage lending by £4bn
HSBC UK’s mortgage lending balances increased by $5 billion (£4 billion) compared to the previous year, bringing the mortgage gross carrying amount of its UK arm to $161 billion (£128 billion), as reported in the group’s 2023 annual report. Additionally, the bank raised its market share of UK mortgage stock from 7.4% in 2020 to 8% in 2023, according to Bank of England data.
Skipton Building Society loosens criteria for flats
Skipton Building Society has relaxed lending criteria for flats to aid first-time buyers. Changes include reducing the minimum value for non-standard flats to £100,000 outside Greater London (previously £150,000), while maintaining £300,000 for Greater London. Jonathan Evans, Senior National Account Lead, highlights the move to broaden access to homeownership in response to market shifts.
