Catch up on Mortgage Strategy’s most popular stories this week. Paragon confirms TBMC to close and we question Is now the peak for mortgage rates? Read more below:
Paragon confirms TBMC to close
TBMC, the Cardiff-based mortgage broker business, has announced its closure and will cease accepting new applications starting today. This decision comes after a thorough review conducted by its parent company, Paragon Banking Group PLC. The closure aligns with Paragon’s strategic focus on prioritizing investment in its core operations.
Is now the peak for mortgage rates?
According to Rightmove, the latest average mortgage rates have accelerated this week, rising by an average of 0.18%, compared to last week’s increase of 0.13%. Rightmove’s mortgage expert, Matt Smith, remains cautiously optimistic, suggesting that there is hope for rates to stabilize soon. However, this potential stabilization is contingent upon an imminent inflation update.
Industry reacts as inflation falls to 7.9%
Industry experts warn that despite inflation in Britain falling to a 16-month low, mortgage holders might still experience a ‘choppy period’ ahead. According to the Office for National Statistics (ONS), inflation has declined to 7.9% in the year up to June, showing a significant improvement from May’s figure of 8.7%. This drop in inflation was better than what many economists had predicted. However, the experts caution that uncertainties may persist for mortgage holders in the near future.
First fall for fixes since May following inflation data: Moneyfacts
Residential mortgage rates for two- and five-year terms fell for the first time since May, following a better-than-expected inflation report. The average two-year fixed-rate is now 6.79% (2 basis points lower), while the average five-year fixed-rate is 6.31% (2 basis points lower as well).
Broker frustration over ‘shocking’ lender wait times
Research by broker forum Cherry reveals that the average wait time for brokers to speak to a lender is nearly 33 minutes, with the longest wait stretching to 153 minutes. Surprisingly, brokers believe an acceptable wait time should be just under five and a half minutes, highlighting a significant disparity between expectations and reality.
Fixes hold steady ahead of inflation data: Moneyfacts
For the second consecutive day, average two- and five-year residential fixed mortgage rates remained unchanged, signaling a pause in the market after weeks of increases. Data from Moneyfacts indicates that the average two-year fixed residential mortgage rate currently stands at 6.78%, the same as it was on Friday. This stability comes ahead of tomorrow’s inflation report, which may have an impact on the market’s future direction.
HSBC debuts online mortgage support hub
HSBC has introduced an online support hub to assist customers who are worried about their mortgage repayments amid rising interest rates. The support hub offers various resources and tools, including detailed guidance on applying for the measures outlined in the Mortgage Charter. This charter was recently agreed upon between the government and the country’s leading home loan lenders. The aim is to provide customers with essential information and step-by-step instructions to navigate through potential financial challenges during these uncertain times.
Swap rate trend offers hope for borrowers
According to the latest analysis by specialist lender Octane Capital, although the average swap rate has been steadily increasing every month since the rise of interest rates began, recent days have seen a reversal with reductions in the swap rates. This suggests that a potential decrease in mortgage rates might be on the horizon. The analysis examines both current and historical data on swap rates, considering the average monthly prices since December 2021 when the interest rates started to climb.
Twenty7tec launches broker CRM software
Twenty7tec has recently launched a new customer relationship management software for brokers, called FINPLAN Home. This software represents the latest upgrade of the Finplan customer relationship management technology. Twenty7tec acquired this technology as part of its buyout of rival Bluecoat Software in June of the previous year, for an undisclosed fee. With this new software, the mortgage tech firm aims to enhance and streamline broker interactions and services.
Virgin announces rate changes on fixed-rate deals
Starting from Thursday, 20th July, Virgin Money is implementing rate changes on certain products. The existing fixed-rate exclusives will be withdrawn, and selected two, three, and five-year fixed rates will undergo increases of up to 0.22%. Additionally, the buy-to-let portfolio rates will see an increase of 0.05%.
