Catch up on Mortgage Strategy’s most popular stories this week. Speculation rising about stamp duty changes in Autumn Statement and Halifax offers sub-5% five-year loans, cuts rates by up to 46bps. Read more below:
Speculation rising about stamp duty changes in Autumn Statement
Speculation mounts about Chancellor Jeremy Hunt possibly announcing stamp duty changes in the November 22 Autumn Statement. Housing remains a government priority, evident in the inclusion of the Leasehold and Freehold Bill in the recent King’s Speech. While tax giveaways may be constrained, targeted stamp duty reforms could invigorate a sluggish property market and bolster house prices, potentially appealing to voters with a general election looming in the next 14 months.
Halifax offers sub-5% five-year loans, cuts rates by up to 46bps
Starting November 15, Halifax Intermediaries will provide sub-5% five-year home loans, with rates beginning at 4.53%. The broker-only arm of the lender offers diverse homebuyer deals, encompassing first-time buyer options, new builds, large loans, and affordable housing, including shared equity/shared ownership and equivalent green products.
Santander head of mortgages Fordham to leave after 28 years
Santander’s Head of Mortgages, Brad Fordham, is set to depart the bank at the end of December, concluding a 28-year tenure, to explore new opportunities. Fordham assumed the permanent role of Head of Home Loans in May 2020, initially stepping in on an interim basis in January of the same year, succeeding Miguel Sard.
Paragon Bank cuts five-year fixed-rate by up to 20bps
Paragon Bank announces a 20 basis points reduction on its five-year fixed-rate buy-to-let mortgages. Rates will now commence at 6.10% for single self-contained (SSC) properties with Energy Performance Certificate ratings of A-C. For properties with EPC ratings of D or E, whether for purchase or remortgaging, rates increase by 5 basis points. Houses in multiple occupation (HMO) and multi-unit blocks (MUB) will experience a 20 basis points rise.
House asking prices suffer sharpest fall in five years: Rightmove
New seller house asking prices experienced their most significant drop in five years this month, according to Rightmove data. With transactions trailing 10% below 2019 pre-pandemic levels, home prices fell by 1.7% to £362,143 compared to the prior month. The property website’s latest House Price Index attributes this decline to sellers adopting a more realistic pricing approach “as Christmas approaches and sellers continue to attract a buyer.” This marks the steepest monthly fall since 2018, contributing to a 1.3% decrease in annual prices.
Halifax reveals 10 UK locations with rising property prices
Halifax unveils the top 10 British local areas with the most robust house price growth in the past year. Contrary to the national trend, over 70 local authority areas experienced increasing property prices. Powys in Wales leads with the strongest growth at +17.4%, while East Lindsey in the East Midlands takes the top spot for England with +13.3%.
Cover feature – Sally Laker: No regrets after 50 years of service
Sally Laker retires from Mortgage Intelligence (MI) after 50 years in the financial services industry. She discusses her various roles throughout her career, including her time at Royal Insurance, Norwich Union, and Provincial. Laker is proud of her contributions to MI, particularly the creation of the network from scratch. She has faced challenges along the way, such as the credit crunch, but has always remained positive. Laker plans to spend her retirement with her family and enjoy the small pleasures of life.
Virgin Money launches 7-day exclusives, cuts rates by up to 25bps
Virgin Money introduces a selection of 7-day purchase and remortgage exclusives, coupled with rate reductions of up to 25 basis points on specific products. The high street lender’s exclusive range, accessible until 8 pm on November 20, includes remortgage exclusives with a 7-day special featuring a £995 fee.
Landlord sell-off eases, except in Scotland: Hamptons
UK landlord property sales have slowed to 14% this year from 15.7% a year ago, as per Hamptons data, indicating an estimated 139,820 properties to be sold in 2023. This projection reflects a decrease of 53,000 from last year and 62,000 from the 2021 peak. Scotland is the only region where landlord sell-offs have accelerated, accounting for 12% of all sellers, up from 10% in 2022.
Industry welcomes falling inflation but tough times ahead
The UK’s inflation rate plummeted to 4.6% in October, primarily due to reduced gas and electricity prices. AJ Bell’s Head of Financial Analysis, Danni Hewson, highlights that not only has the Consumer Price Index (CPI) dropped below 5%, but it has hit a two-year low, surpassing expectations with a cooler-than-anticipated figure released this morning.
