Catch up on Mortgage Strategy’s most popular stories this week. Mortgage Advice Bureau sees 6% drop in broker numbers and Nationwide cuts rates on switcher mortgage range. Read more below:
Mortgage Advice Bureau sees 6% drop in broker numbers
Following the mini-budget fallout, the Mortgage Advice Bureau (MAB) experienced a decline in total broker numbers. According to their recent trading update, published today, the company’s broker count decreased by 6% during the first five months of 2023.
Mortgage sales slump by 42% year to date
The mortgage sector has experienced a 42% decline in property transactions this year, with higher interest rates impacting purchasing power. The UK’s pricier regions have been hit hardest, as per Octane Capital’s analysis. Only 87,686 property sales have been completed in 2023 so far, representing a significant drop compared to late 2022 – a difference of 62,270 fewer homes sold.
Govt to convert ‘takeaways and betting shops’ to build 1m homes
Housing and Levelling Up Secretary Michael Gove presented the government’s plan to convert “shops, takeaways, and betting shops” into homes, aiming to meet the manifesto goal of constructing one million homes during this Parliament. The measures will focus on building homes in urban areas and streamlining the planning system, as announced in the House of Commons.
Gove comments on EPC ratings heavily criticised
In a recent interview with Michael Gove, the Sunday Telegraph disclosed the housing minister’s desire to ease current rules prohibiting landlords from renting out their homes without meeting certain Energy Performance Certificate (EPC) requirements by 2028. Gove believes the current pace of implementation is too demanding, especially for landlords facing financial strain. He advocates for a more relaxed approach, considering the significant capital investment many landlords must make to improve energy efficiency.
Brokers demand lenders act on FMA submissions
Hanley Economic Building Society has implemented a new policy, offering a minimum of seven days to its intermediary partners to submit a full mortgage application (FMA) after a product withdrawal, given that a decision in principle (DIP) has been agreed. This move aims to provide intermediaries with more time and certainty to convert DIPs into FMAs in a volatile product environment. Mortgage Strategy reported on this commitment last week.
Nationwide cuts rates on switcher mortgage range
Nationwide Building Society is offering reduced rates on its switcher mortgage products, with cuts of up to 0.35%. These products are designed for Nationwide mortgage members who are reaching the end of their current deal and seeking a new one.
Huge jump in borrowers taking on 35-year mortgages
Quilter’s data reveals a significant surge in marathon mortgages, with the number of borrowers opting for home loan terms of 35 years or more more than doubling over the past four years. In 2022, the figure reached a record high of 88,059, compared to only 40,471 in 2018, representing a remarkable 117% increase. Homeowners are increasingly seeking longer terms to reduce their monthly mortgage payments.
Coventry BS to cut all 2-year, 5-year resi and BTL fixes
Coventry Building Society is set to reduce its complete range of two- and five-year fixed-rate loans for residential and landlord mortgages on Friday, July 28. The current range will be closed at 8 pm on Thursday, July 27, in adherence to the policy of providing brokers with a two-day notice before product closures. The new deals will be made available at 8 am on Friday.
One in two customers see mortgage products withdrawn
A survey of 2,000 UK adults conducted by Market Financial Solutions (MFS) has unveiled that 50% of those who applied for a mortgage in the past year had their desired product withdrawn by the lender before finalizing the deal. Additionally, the research found that over three in ten (31%) had an agreement in principle that ultimately fell through.
Accord and HSBC cuts rates across resi range
HSBC and Accord are making significant rate cuts in their residential mortgage offerings. Accord is reducing rates by up to 0.16%, while HSBC is implementing fixed-rate reductions up to 90% Loan to Value (LTV) from tomorrow, July 26. Additionally, Accord has introduced a new product in its Boost LTI range, offering offset options at rates starting from 5.95%.
