6th November 2017 / For the first time in more than 10 years, the Bank of England last week raised their interest rates.

This was not unexpected and the official bank rate has been lifted from 0.25% to 0.5%, the first increase since July 2007.

It is likely to rise twice more over the next three years, according to Bank of England governor Mark Carney. The move reverses the cut in August of last year, which was made in the wake of the vote to leave the European Union. Let’s wait and see …

 

12th April 2016Rates reduce on buy-to-let deals:  The last 5 years have seen a decrease in interest rates for landlord mortgages, according to research from Moneyfacts.

The financial information provider said that 2 year fixed rates for landlords have fallen from 5.21% in April 2011 to 3.32% today, with 5 year deals having dropped from 6.24% to 4% over the same period.

The Moneyfacts’ said: “While the new tax rules and Stamp Duty changes could potentially take the shine off buy-to-let investment, property is often seen as a safe bet. However, while the current pressures on the market are not yet causing rates to rise, borrowers should remember that they will now be facing tighter lending rules, including stricter affordability checks and it is even more important to seek financial advice to see if buy-to-let really is the right option for them.”

 

1st September 2015 / Number of buy-to-let mortgages available hits 1,000 – representing a seven-year high, according to a Moneyfacts report.

This may be attributed to new demand from thousands of pensioners making the most of the new pension freedoms, according to experts.

The wider range in products has been accompanied by falling average interest rates, which have dropped by around 3% over the same period. The Mortgage Works for example have reduced their rates by up to 0.5% on some buy-to-let products meaning some of their lowest interest rates ever.

 

5th August 2015 / House prices up 3.5% in last 12 months (according to Nationwide).

On a monthly basis, prices grew 0.4 per cent to £195,621.

Nationwide chief economist Robert Gardner says “This would bode well for a sustainable increase in housing market activity, though whether this will be maintained will depend on whether building activity can keep pace with increasing demand.”      Our thoughts: time will tell …

 

21st July 2015 / The Centre for Economics and Business Research has tripled its house price forecast for 2015 from 1.5% to 4.7%.

It cited a ‘chronic lack’ of properties for sale, mirroring analysis from Rightmove released yesterday that a ‘mismatch between demand and supply’ caused house prices to reach a new record high.

Rightmove’s figures show that supply fell 10.6%, bringing the average new seller asking price to £294,542.

CEBR predicts that by 2020, average house prices will increase from £261,000 to £321,000 – a 23.1% rise. However it expects inflation to drop slightly to 3.4% in 2016 and 4.4 % in 2017.

 

14th July 2015 / Bank of England’s Mark Carney says base rate rise is ‘moving closer':

The governor of the Bank of England told the new Treasury Select Committee that “the point at which interest rates may begin to rise is moving closer, given the performance of the economy”.

He later added: “The point at which interest rates will begin to adjust up is moving closer on the policy horizon, but we see no scenarios where they move to historic levels.”

 

2nd June 2015 / First-time buyer mortgage rates at three-year low – would-be homeowners are also benefiting from more products being available, research from Money Supermarket said. In the past three years the average first-time buyer mortgage rate has fallen by one percentage point to 3.26%. During the same period the number of first-time buyer mortgages has more than doubled – boosted by the launch of the government’s Help to Buy scheme.

 

13th May 2015 /Number of borrowers in negative equity falls 85% in 4 years: according to HML.

According to the third-party servicer’s research, there were 120,511 borrowers in negative equity in the UK in the first quarter of 2015, compared to 826,800 in the first quarter of 2011. The area with the biggest reduction was Greater London, which has seen the number of these borrowers fall 99.8 per cent from 88,000 to 219 over the period. All areas of England experienced at least a 90 per cent reduction in the amount of borrowers in negative equity over the past four years, except Yorkshire and Humberside and the North East at 85.9 per cent and 72.8 per cent respectively.

 

8th May 2015 /UK house prices up 1.6% in April, says Halifax (with the annual rate of increase rising slightly to 8.5%.)

The increase means the average house price has risen to £196,412.
Halifax said demand for housing was due to several factors, including the improving economy, rising employment and low mortgage rates while supply remained “very tight” with a general shortage of properties for sale.

However, the lender said it expected the annual rate of increase to have slowed by the end of the year.

 

22nd April 2015 / “BTL Mortgages going through renaissance as rates tumble”.

Average buy-to-let fixed rates have fallen by up to 50 basis points over the past year, according to Moneyfacts.co.uk.

Data shows the average buy-to-let two-year fixed rate has fallen from 3.94 per cent a year ago to 3.45 per cent now. (Two years ago the average was 4.44 per cent.)
The average five-year fixed rate has fallen from 4.65 per cent a year ago to 4.25 per cent now. (Two years ago the average was 4.67 per cent.)

 

1st April 2015 / Lenders need to ‘wake up and smell the coffee’ on self-employed mortgages.

Many lenders are still shying away from developing mortgages for the self-employed almost a year after the Mortgage Market Review and despite growing evidence of a “glut” of self-employed borrowers. Numbers of self-employed workers have steadily climbed over the last two years, rising from 4.2m in December 2012 to 4.5m at the end of 2014.

We totally understand the issues and frustrations that self-employed individuals face when applying for a mortgage. Whether you are the owner of your own limited company, a sole trader, a partner and receive a salary, dividends or a mixture of the two and are looking for my mortgage advice Heritage Mortgages will be able to help.

25th March 2015 / Variable mortgage rates popularity increase

Variable mortgage rates popularity increase as chance of base rate rise fades: Borrowers are increasingly opting for trackers with some 10.1 per cent of homebuyers and remortgage customers choosing a variable rate in February (Up from 8.6 per cent in January, which is the highest percentage in 27 months, according to MA.)

Fixed rates still remain the overwhelming preference of the majority of people. To explore which type of rate may be best for your circumstances, please speak with us here at Heritage Mortgages.

11th Mar 2015 / Bank of England – Rate Changes?

Bank of England governor Mark Carney says it would be “extremely foolish” for the central bank to cut interest rates in a bid to tackle record low inflation. (Carney has continued to stress that low inflation is being driven by the sharp fall in oil prices.). In January, inflation fell to its lowest ever rate of 0.3 per cent. He expects inflation to fall to around zero and stay there for much of the year.

But Carney added he was “vigilant” that low prices could eventually feed through to impact on spending and wages.

2nd March 2015 /David Cameron pledges to ‘keep mortgage rates low’! … (if the Conservatives win power in the general election.)

Giving a speech in a Colchester, in Essex, today, Cameron also pledged to deliver 200,000 new starter homes within the next five years.
Cameron claimed the Government’s management of the economy had helped to keep a lid on mortgage rates, something he promised would continue if his party is successful in May.