Catch up on this week’s top stories on Mortgage Strategy. From the MPC’s surprising stance on rate cuts to Aldermore’s strategic moves, this week’s headlines are shaking up the mortgage world. Explore further:
MPC has ‘shifted thinking’ to rate cuts: BoE deputy governor Breeden
Bank of England Deputy Governor Sarah Breeden has shifted her focus from rising inflation to considering the duration of maintaining current interest rates. Serving as a member of the Monetary Policy Committee, Breeden was among six policymakers who opted to maintain rates at a 16-year high of 5.25% last week, outnumbering two who advocated for a hike and Swati Dhingra, who favoured a cut.
Aldermore pulls all resi, BTL and product switch fixes ahead of repricing
Aldermore withdrew all fixed-rate loans from its residential, buy-to-let, and product switching ranges on February 7, before raising prices the next day due to increasing swap rates. The specialist lender accepted decisions-in-principle submitted to its portal until 6 pm on February 7, with new business offers guaranteed for 10 days. Brokers had to secure a product switching offer by the same deadline, valid for seven days.
Halifax cuts FTB rates by up to 59bps, remortgage deals rise by up to 12bps
Halifax has reduced fixed-rate prices on first-time buyer (FTB) offers by up to 59 basis points while increasing rates for remortgage and product transfer deals by up to 12 bps. Notable highlights include a 4.84% rate at 90% loan-to-value (LTV) for two-year FTB offers, with a £999 fee, down by 59 bps. Additionally, two-year FTB products at 5.46% for LTVs between 90% and 95%, with no fee, have decreased by 31 bps.
Peter Beaumont steps down from The Mortgage Lender
Peter Beaumont, Chief Executive of The Mortgage Lender, is stepping down from the business after seven years. Initially joining as deputy chief executive in 2017, Beaumont was promoted to the role of chief executive in 2020, succeeding Trevor Pothecary. Under Beaumont’s leadership, the lender experienced significant growth, establishing itself as a prominent player in the specialist mortgage market and originating close to £3 billion of assets.
Santander reduces purchase mortgage rates by 0.20%
Santander UK reduced rates on select residential purchase mortgages by up to 0.20%. The rate adjustments, effective from February 7, apply to its two- and five-year fixed-rate options.
Tide starting to turn on fixed rates – Moneyfacts
The majority of lenders reduced their fixed rates this week, though some are now increasing rates, signalling a shift. Rachel Springall, Finance Expert at Moneyfacts, noted that while some products were withdrawn, there wasn’t a widespread exit. These fluctuations led to a week-on-week increase in the average two- and five-year fixed mortgage rates.
House prices rise for fourth month in a row in January: Halifax
In January, UK average house prices increased by 1.3% to £291,029, marking the fourth consecutive monthly rise, as reported by Halifax. The lender’s latest House Price Index reveals that property prices are now growing annually at 2.5%, the highest rate since last January. Northern Ireland experienced the strongest growth among all UK nations and regions, with prices rising by 5.3% to £195,760 compared to a year ago.
Buyer demand strongest in 2 years: Rics
According to data from the Royal Institution of Chartered Surveyors, new buyer enquiries surged to a balance of plus-7% last month, a significant increase from minus-3% in December and the strongest figure in nearly two years. The latest monthly Residential Market Survey from the surveyor body also indicates an improved outlook for sales volumes over the next twelve months, attributed to expectations of future interest rate cuts by the Bank of England.
Mental wellbeing and Paul Lewis hot topics on cherry
Mental wellbeing and a controversial comment by broadcaster Paul Lewis have been prominent topics on the industry forum cherry recently. In 2023, Cherry garnered over 35,000 unique visitors, with numerous threads dedicated to mental health and wellbeing. One particular thread, titled “How is everyone doing?”, sparked significant responses and positive engagement from users.
Market Watch: A year to adapt and innovate
Andrew Montlake reflects on the 2024 mortgage market, marked by optimism and caution post-2023 upheavals. Amid uncertainties, adaptability and innovation are key. He discusses market dynamics, interest rate expectations, and political influences. He provides insights into recent industry initiatives, emphasising resilience and collaboration.
