Catch up on Mortgage Strategy’s most popular stories this week. Industry reacts as UK inflation falls to 6.8% and BoE’s CHAPS payments system suffers an outage. Read more below:
Industry reacts as UK inflation falls to 6.8%
UK inflation falls to 6.8%, its lowest level since February 2022. Industry reacts with caution, warning that there is still a rocky road ahead and that the latest drop might not be enough to prevent the country from slipping into a recession.
Aldermore announces limited edition BTL range
Aldermore launches limited edition buy-to-let range with rates starting from 5.89%. The range is available for individual and company landlords with single residential investment properties.
Halifax launches vulnerable customer advice service
Halifax has upgraded its vulnerable customer advice service to allow brokers to pass on details about clients who may need help managing their home loans. The move follows the Financial Conduct Authority’s Consumer Duty rules launch at the end of last month.
Brokers dealing with more mental health cases
Brokers are increasingly dealing with clients who are experiencing mental health issues, such as anxiety and stress. This is due to the rising cost of living and the economic uncertainty caused by the COVID-19 pandemic. Brokers are playing a vital role in supporting these clients and helping them to find the right financial solutions.
Skipton cuts rate on 100% LTV mortgage
Skipton Building Society has cut the rate on its 100% loan-to-value (LTV) mortgage by 15 basis points to 6.29%. The deal is available to first-time buyers with a strong track record of rental payments. The cut comes as lenders continue to compete for borrowers in the current challenging market.
Barclays cuts mortgage rates by 0.3%
Barclays has cut mortgage rates by 0.3% across its residential, buy-to-let and Reward ranges. The cuts are effective from tomorrow (August 15th) and apply to a range of products, including two-year fixed rates and five-year fixed rates. The move comes as lenders continue to compete for borrowers in the current challenging market.
Mortgage rates moving right way for borrowers: Rightmove
According to Rightmove, mortgage rates are moving in the right direction for borrowers, with average five-year fixed rates dipping below 6% for the first time in a month. The latest weekly mortgage tracker from Rightmove reveals that five-year products have reduced by an average of 0.2% and two-year products have dropped by an average of 0.1% over the past week, as the full effect of recent lender rate cuts starts to hit the market.
Accord cuts rate and launches cashback products
Effective August 16, Accord is introducing rate cuts and new cashback offerings. Chosen 95% LTV rates will decrease by up to 0.80%, and new five-year fixed rates at 90% and 95% LTV will include £2,000 cashback. Accord is also implementing rate reductions of up to 0.10% on its five-year Deposit Unlock mortgages.
BoE’s CHAPS payments system suffers outage
The Bank of England’s CHAPS payments system suffered an outage on August 14, 2023, preventing it from opening its real-time gross settlement service and its CHAPS high-value payments system. The outage was caused by a technical issue, but has since been resolved.
BTL sellers see capital gains dip in 2023
Buy-to-let sellers in England and Wales saw their average capital gains dip by 10.1% in 2023, to £95,000. This is the first year-on-year fall in capital gains since 2020. The slowdown in price growth is being attributed to a number of factors, including rising interest rates and the cost of living crisis.
