Catch up on Mortgage Strategy’s most popular stories this week. The Mortgage Mum goes live with specialist finance brand and Metro Bank shares plunge 27% over fundraising concerns. Read more below:
The Mortgage Mum goes live with specialist finance brand
The Mortgage Mum has expanded into the specialist finance sector through its newly established sister company, “The Mortgage Mum Specialist Finance.” This new venture, operating as an appointed representative of New Leaf Distribution, will specialize in various financial services, including development finance, commercial buy-to-let, bridging finance, adverse credit solutions, and catering to high-net-worth clients.
Metro Bank shares plunge 27% over fundraising concerns
Metro Bank’s shares have plummeted by over 25% following reports that the bank is in discussions with investors to secure up to £600 million in capital to strengthen its financial position. The bank aims to raise approximately £250 million through equity funding and an additional £350 million through debt issuance. These efforts are in preparation for £350 million of loan notes maturing in the coming October, as reported by the Financial Times.
Halifax makes second rate cut in a week, Newcastle reduces BTL prices
Halifax is set to implement its second rate reduction in a week, while Newcastle for Intermediaries has taken steps to lower prices for landlords by as much as 46 basis points. This reflects a broader trend among lenders, who are actively working to reduce the costs associated with home loans. Halifax has announced that it will reduce rates on various products by up to 14 basis points, effective from Friday, October 6. This comes shortly after the bank made residential rate cuts earlier in the week, including a five-year 60% loan-to-value offer at 4.93%.
TSB become latest lender to announce sub-5% deals
TSB has joined the ranks of lenders offering rates below 5% by announcing reductions of up to 0.35% in its residential, product transfer, and additional borrowing range. With rates starting at 4.89%, the bank is following the trend set by other major high street banks like Santander in introducing sub-5% deals. These rate cuts, applicable from October 3, will impact two-year fixed rates for new buyers and remortgagers with up to 90% loan-to-value (LTV), with reductions of up to 0.25%.
All regions record house price falls in Q3: Nationwide
According to the latest Nationwide House Price Index, UK house prices have remained stable over the past month, but they continue to show a year-on-year decline of 5.3%, equivalent to approximately £14,500. In the third quarter, all regions in the UK reported annual decreases in house prices, with the South West experiencing the most significant decline at 6.3% year on year.
Damning HBF report reveals extent of England’s housing crisis
A new report by the Home Builders Federation (HBF) has revealed that England has become the most challenging place in the developed world to find a house. The analysis also indicates that properties in England are less affordable and in poorer condition compared to those in the majority of other nations.
One in four under-30s take out marathon mortgages: Experian
Experian reports that one in four mortgages acquired by borrowers under the age of 30 now have terms of 35 years or longer, a significant increase from one in 10 just three years ago, marking a 150% surge since 2020. This trend is primarily attributed to the escalation in mortgage costs, with rates shifting from below 2% for two- and five-year fixed-rate mortgages three years ago to the current rates of 5.99% for a two-year fixed-rate mortgage and 8.22% for a standard variable tariff, as per L&C Mortgages.
Nationwide extends sub-5% mortgage loans
Nationwide Building Society is set to expand its offering of home loans with interest rates below 5% as it introduces a new round of price reductions, effective tomorrow. In this update, the mutual intends to reduce specific tracker rates by up to 40 basis points and fixed-rate remortgage deals by up to 25 basis points, ultimately bringing its lowest available rate down to 4.99%. Notably, Nationwide already provides sub-5% loan options for both first-time buyers and home movers.
Average mortgage rates continue to fall: Rightmove
For the tenth week in a row, average mortgage rates have fallen, reflecting the ongoing downward trend in fixed-rate mortgages. Matt Smith, the mortgage expert at Rightmove, explains that the increasing number of lenders offering sub-5% rates suggests a growing confidence in the stability of swap rates, the underlying costs of fixed-rate mortgages. This could potentially lead to more rate reductions, especially for those with smaller deposits.
Nationwide BS increases maximum LTV and LTI for self-employed
Nationwide Building Society is raising the maximum loan-to-value (LTV) to 95% for self-employed borrowers. This adjustment ensures that whether they are buying a new home or their first property, they can avail themselves of Nationwide’s standard product range. Additionally, those considering a remortgage with Nationwide will have access to the complete remortgage product range, with options available up to 90% LTV.
