Weekly New Build news bulletin

16/07/2021

Some interesting news coming out of the market this week, see below:

More lenders are coming in the Market to offer Mortgage with 5% deposit, there are more than 15 lenders offering low deposit Mortgage.

The number of available Mortgage products has grown for nine months in a row, while rates have dropped at the fastest since June 2020.

National asking rents outside London have jumped by 6.2% year on year to reach more than £1000 a month for the first time on record, even more reason for people to get on property ladder.

Some interesting facts to share during this hot weather, did you know that Ice pops (Popsicle) was invented by an 11 year old by accident in early 1900 which he patented afterwards.

 

09/07/2021

Some interesting news to share with you today:

In connection to news shared regarding FIRST HOME SCHEME last week, Chorley Building Society has joined other lenders likes off Darlington Building Society, Halifax, Leeds Building Society, Halifax, Leeds Building Society, Mansfield Building Society, Nationwide Building Society, NewCastle Building Society to offer Mortgages under this scheme. Quick reminder First Home Scheme will help local first-time buyers to get onto property laddery by offering homes at a discount of at least 30% compared to the market price and it allows to secure Mortgage with just a 5% deposit.

Average rents across the UK have risen by 5.9% over the year to reach a record high of £1007 per month ultimately more opportunities for landlords.

Interest rates are still steady this week though Stamp duty has come to end.

DID YOU KNOW THAT “The earliest use of the word Mortgage (Spelled mortgage) was in the poem Confessio Amantis, which was written in the 1300s. In that poem, the word was used to describe marriage, not a home loan.

There remains a reasonable choice of 90% products from the likes of Barclays, Furness, Saffron & Kensington among others.

02/07/2021

Virgin Money has launched two new shared ownership green new build mortgages and reduced rates across its residential range by up to 52bps. The new shared ownership green mortgage products are available up to 85% LTV with two-year fixed rates starting at 2.28% and a five-year fix available at 2.63%, both with a £995 fee. Virgin has also launched a new intermediary exclusive five-year fixed rate at 2.15% up to 80% LTV with a £995 fee and £1,000 cashback. Rates have been reduced across Virgin’s core residential range by up to 52bps. The largest reduction is to a five-year fixed rate fee-saver product at 75% LTV, which is now available at 1.76%. Green mortgage products at 85% LTV have been reduced by up to 10bps and are now available at 2.13% fixed for two years and 2.48% for five years, both with a £995 fee.

Nationwide has reduced residential mortgage rates by up to 0.35% across selected fixed and tracker products up to 95% LTV. For first-time buyers, a two-year fixed rate at 95% LTV has been cut by 0.15% to 3.64% with no fee, while a five-year fix has been lowered to 2.54%, with a £1,499 fee.

Following the extension in March, the full stamp duty holiday came to an end this week (30 June).You will likely have seen lots of stories about buyers rushing to complete before this date, but the good news is a reduced stamp duty holiday is still in place until 30 September. The existing stamp duty holiday was introduced in June last year as a measure to help boost the housing market following its closure in the first lockdown. It meant for buyers that the stamp duty nil band, the minimum purchase price at which stamp duty is eligible, was increased from £125,000 to £500,000. This stamp duty holiday was then extended until 30 June. However, the government also confirmed that this nil rate band would then be set at £250,000 until 30 September, giving an additional benefit for buyers who complete between 1 July and 30 September. As such, there is still a saving of up to £2,500 available to those who complete on a purchase before 30 September.

25/06/2021

Some interesting news coming out of the market this week, see below:

 All average fixed mortgage rates dropped this week, says Moneyfacts. The average two-year fixed rate fell 2 basis points, from 2.58% to 2.56% and the average three-year fixed rate dropped 5 basis points, from 2.73% to 2.68%. In the meantime, the average five-year fixed rate shed 2 basis points, from 2.81% to 2.79% and the average 10-year fix decreased slightly, from 2.99% to 2.98%.

 First-time buyers can save up to 30% when buying a new-build home under the government’s First Homes scheme. The government says the new discount scheme will ‘provide a route for first-time buyers to stay in their local areas, rather than being forced out due to rising prices.’ The following lenders have signed up so far: Chorley Building Society, Darlington Building Society, Halifax, Leeds Building Society, Mansfield Building Society, Nationwide and Newcastle Building Society. How many First Homes will be available? The first properties to be sold under the scheme is in Bolsover in the East Midlands, but it may be some time before the scheme really gets into gear. The government says further sites will be launched in the next few weeks. It anticipates 1,500 First Homes becoming available by the end of 2021, and at least 10,000 a year thereafter.

 The number of properties that sold for more than their asking price in May beat previous records for the second month in a row, the latest figures from NAEA Propertymark reveal. The trade body for estate agents found that 33% of homes achieved more than their original listing price, up from 32% in April. The gap between demand and supply continues to drive prices upwards as there were just 25 properties available per branch in May, which is the lowest figure since 2002. On the other hand, the number of househunters per branch increased from 427 in April to 506 in May, which is a record for that month. As a result there were 20 buyers chasing each property on the market.

18/06/2021

Some interesting news to share with you today:

House prices in the UK rose 8.9% in the year to April, show new figures from the Office for National Statistics. This is slightly below March’s figure of 9.9% and means that average house price in the UK is now £256,000. In England, an 8.9% annual rise saw the average house price move to £268,000 and in Wales, a 15.6% increase left the average house price at £185,000. Scotland witnessed a 6.3% rise across the same time frame, giving an average house price of £161,000 and in Northern Ireland, growth of 6% gives an average house price of £149,000 as of April. Meanwhile, London chalked up the lowest annual growth for the fifth month in a row, at 3.3%. The North East came out on top by this metric, recording 16.9% growth with the Yorkshire and the Humber second at 12%, almost tied with the North West, at 11.8%.

Skipton has just announce a new 90% deal for new build.

    • 3.16% Fixed rate
    • 4.64 Reverting rate
    • £995 Fee
    • £5,000 Min loan
    • £500,000 Max loan
    • No charge for a mortgage valuation

The UK economy surged 2.3% in April – the fastest monthly growth since July 2020, and a sure sign that a “rapid recovery is well underway”. GDP is now 1.2% above its initial recovery peak in October 2020, according to Office for National Statistics (ONS) data, published today (11 June). April’s growth left GDP up a massive 27.6% up from its low point in April 2020, but still down 3.7% on its pre-pandemic level in February 2020. The surge was driven largely by the service sector, which enjoyed a 3.4% bump as consumer-facing services re-opened in line with the easing of coronavirus restrictions. Commentators say caution should be exercised regarding the final stage of reopening on 21 June. However, any delay is unlikely to detrimentally affect the economy in the longer term.

 Since the pandemic both the average cost of a wedding and the price of a deposit on a home have increased somewhat. But when it comes to choosing which to prioritise it would appear homebuying dreams are a priority for more couples than tying the knot. This is according to new research by Direct Line Life Insurance in which 12% of people quizzed believed taking out a mortgage was more important than getting married. If this percentage were to be applied across the population it would suggest 6.3 million UK adults would prioritise the mortgage over their wedding plans. Indeed the research also found 76% thought buying a home was an important life goal compared to 64% who viewed marriage in the same way. And while the former was of equal importance to men (77%) and women (76%), getting married was slightly more important to women (68%) than to men (61%). In the UK, around 5% of those who have been married prioritised buying a property over having a wedding, while around 3% delayed buying a property so they could have the perfect wedding day. With the average cost of doing both exceeding £80,000, it is no wonder people feel the need to prioritise one over the other said Direct Line. The average age to get married currently stands at 37, when the typical salary is £32,700. On this salary, couples would need to save 10% of their salary for 15 years to be able to fully fund both a wedding and a mortgage.

11/06/2021

Some interesting news to share with you today:

The average house price in the UK lifted to £261,743 in May, according to the latest index from Halifax. This is a 1.3% increase on the average price in March and an annual jump of 9.5%. The lender says prices hit “another record high in May”, with properties rising by more than £22,000 over the past year, and more than £3,000 in the last month alone.

The number of mortgage products on the market has exceeded 4,000 since coronavirus hit the UK’s shores. Data from Moneyfacts shows that as of the start of June 2021, there were 4,243 mortgages for potential borrowers to choose from, up from 3,927 at the start of May 2021. In June 2020, there were just 2,810 mortgages on the market. As well as choice improving overall, the number of 95% LTV mortgages on the market increased from 112 in May to 192 in June.

The term ‘furloughed workers’ has dropped out of the list of top broker criteria searches for the first time since the pandemic began, according to Knowledge Bank. It had spent more than a year among the top five most-searched terms following the first March 2020 lockdown. The survey adds, this was the first month since the health crisis began that no Covid-related searches featured, suggesting “sunnier times on the horizon as more people return to work, as it hints that we are beginning to return to normality”.

The gap between supply of new property listings coming onto the market and demand from those looking to buy was its widest for more than seven years in May as the rush to beat the end of the stamp duty holiday continues, according to the latest index from the Royal Institution of Chartered Surveyors. The number of people looking to buy a new home continued to rise in May, with a net balance of 32% of surveyors reporting an increase in prospective buyers. At the same time a net balance of -21% respondents reported another fall in the number of new listings being brought to market. The disparity between new buyer enquiries and new sales instructions is at its widest since November 2013.

 

04/06/2021

Some interesting news to share with you today:

The number of properties sold this year is set to reach the highest level since the global financial crisis, Zoopla has forecast. Its projections come as the website’s latest house price index shows asking prices increased by 4.1% in the year to April, to reach an average of £228,300. Home sales are on track to hit 1.52m this year, an increase of 45% from 1.05m in 2020, the property portal predicts. It says that with average annual transactions rarely exceeding 1.2m per year over the last decade, this would mark the highest number of sales since 2007 and make 2021 one of the top 10 busiest years since 1959.

Homemovers have “emerged from the shadows” since last summer, says UK Finance, with its latest quarterly figures showing the number of transactions of this type outnumbering that of first-time buyers. Homemover numbers have been at approximately half their typical levels seen in 2005 to 2007 since the financial crisis in late 2008. However, in Q1 2021, activity leaped by 82% compared to Q1 2020, bringing volumes to a level not seen since 2007.” There were 131,980 homemover loans made in the first three months of the year, the data shows, which compares to 97,450 loans made to FTBs during the same time frame.

There are a growing number of 95% deals direct with lender and there are also a number of specialist 95% schemes getting closer to launch. This will help cushion the impact of property rate caps as those schemes are likely to have a much higher caps. 

Recent research suggests that most buyers would still have purchased without the stamp duty holiday. Many buyers have said that lockdown has re-focused their feeling about space at home e.g Many buyers are moving to have more home space due to working from home and office space etc.

 

28/05/2021

Some interesting news to share with you today:

Virgin Money has launched a new mortgage with lower rates of interest to customers buying energy-efficient, new-build homes.

The firm says its Greener Mortgages are for borrowers who buy new homes, which have an energy performance certificate or predicated energy assessment rating of A or B. The range is open to first and next time buyers and includes Help to Buy equity loan options. The product features a range of two and five-year fixed-rate mortgages, which come with cashback to help towards valuation costs.

New build purchase mortgages rates include:

  • 85% loan-to-value two and five-year fixed rates, starting from 2.33%.
  • 75% LTV two and five-year fixed rates, starting from 1.44%.
  • 65% LTV two and five-year fixed rates, starting from 1.25%.

The Help to Buy equity loan rates are:

  • 75% LTV two and five-year fixed rates, starting from 2.00%
  • 55% LTV two and five-year fixed rates, starting from 2.00%.

Accord are pleased to announce they are improving their higher LTV mortgage range to include new build options up to 90%.

What’s new?

For borrowers buying a new build with a maximum loan size of £500,000, the new range includes:

  • Two-year fixed rate at 3.70%
  • Five-year fixed rate at 3.76%

For borrowers requiring a maximum loan size of £600,000, the following products are available:

  • Two-year fixed rate at 3.80%
  • Five-year fixed rate at 3.86%

All four products come with a £495 completion fee, £750 cashback and free standard valuation. The LTI ratio is capped at 4.49% and new build flats are not permitted.

There was a 179.5% jump in residential transactions within the UK in the year to April 2021, new figures from HMRC show. The provisional, seasonally adjusted estimate comes in at 117,860 transactions for April 2021 compared to 42,160 in April 2020. This is the busiest April on record since 2007, which saw transactions numbering 126,450.

 

21/05/2021

Update on  95% Mortgages:

We still have the Monmouthshire looking at new build and we keep in close contact with all the lender BDM’s in case of any changes. As of today there are no other lenders looking at new build.

Some more interesting pieces of info coming out of the market:

Changes to the housing market wrought by the pandemic may be here to stay, a senior Bank of England member is due to say in a speech today. The comments come from BoE deputy governor for financial stability Sir Jon Cunliffe, who will be talking in front of the Law Society. He describes the UK housing market during the decade before the pandemic as having been in a “snooze” – a period where, “house prices grew broadly in line with incomes, having grown at double the rate of income in the previous twenty to thirty years. ”The most recent data available shows that property prices rose 10.2% in the year to March 2021, however. Effectively, the UK housing market has returned to pre-financial crisis levels of activity and price growth rates.

This disparate performance may be an early indication that a shift in the composition of housing demand may have begun, partly because of a change in both employers’ and employees’ expectations in maintaining a full-time office presence.

A structural shift in more working from home is likely to lead to preferences for larger homes, with less weight attached to considerations around commuting times relative to pre-pandemic.

Demand for city centre locations and flats is beginning to return, fuelled by the easing of restrictions and the government’s Mortgage Guarantee Scheme, according to Rightmove. The property website says that the jump in the number of people contacting agents about its flat listings has been higher than for any other property type, up by 39% since January. Demand for city centre properties is up by 35% compared to a 32% jump in demand for homes in villages.

 

Consumers looking for a new mortgage deal will likely welcome new research which has found that there has been an increase in mortgage deals month-on-month, with deals requiring a small deposit seeing the biggest increase. The research, which is due to be published in the Moneyfacts UK Mortgage Trends Treasury Report, found that the total number of mortgage deals available to consumers increased by 85 between April and May, up from 3,842 to 3,927.

14/05/2021

Here are some interesting pieces of info coming out of the market:

The number of new homes registered in Q1 2021 was 36,863, up 10% on the same period last year. Out of this total, 26,985 were in the private sector, also up 10% on last year, while 9,878 were in the rental sector, up 13% on Q1 last year. New home completions in Q1 were 33,074. Of the homes registered, 12,583 were detached; 11,199 were semi-detached; 7,022 were apartments; 5,468 were terraced; and 591 were bungalows.

Construction output increased by 5.8% on a monthly basis in March this year. Totalling £14.25bn of output, this is the most rapid growth rate witnessed since July 2020, when output grew by 17.8%. This latest construction output figure is 2.4% – or £334m – above the February 2020 pre-pandemic level. Measured quarterly, construction output grew by 2.6% in Q1 2021, with a 2.8% rise in new work and a 2.2% increase in repair and maintenance the main drivers behind this. During the first quarter of this year, the data goes on to show, new orders increased by 12.2, totalling £1.23bn, compared with Q4 2020.

A bit political but some very interesting statistics coming from YouGov:

More Conservative voters than Labour supporters think they will own their home by 30, and more of those who voted Remain than Leave say they will be on the property ladder by 40, according to a YouGov poll. The survey found that 41% of Conservative voters said they would have the keys to their own home between 25 and 30, compared to 28% of Labour supporters who voted in the 2019 general election. Just 8% of Conservative voters thought it would take them between 31 and 40, while 38% of Labour supporters thought that was when they would be able to own a house. When it comes to those who voted Remain in the 2016 Referendum, 64% thought they would have their own home by 40, while just 37% of Leave voters thought the same. A series of studies have pointed out that a greater proportion of Remain voters have degrees and earn higher salaries, than Leave supporters. Across the UK population, 65% of the country cited by age 40 when the pollster asked, “At what age do you think you will be able to own your own home?”. Within this group, 35% said they would achieve this by 30. In the more affluent capital, political allegiances make less difference to homeownership aspirations. In London, 63% of Conservative voters thought they would live in their own home by 40, while 72% of Labour supporters think the same. Although, 71% of Remain voters expect to own their own home by 40 in the capital, while just 46% of Leave supporters have the same expectation. Across the country, women have far greater homeownership aspirations. Among women, 77% wanted to be in their own home by 40, while 57% of men thought the same. And among younger people, aged 18 to 24, 55% of them said they would be on the property ladder by 30, with a further 31% saying they would make it onto the first rung by 40.

YouGov interviewed a weighted sample of 1736 adults across the UK between 31 March and 1 April. In London, it interviewed a weighted sample of 2207 adults between 19 March and 1 April.

07/05/2021

A couple of positive takeaways from the market:

Net mortgage borrowing in March hit £11.8bn, Bank of England data details – the biggest number seen since the bank started tracking this data in April 1993. This blows past the last record high, in October 2006, when an additional £10.4bn was borrowed against homes. In the previous month recorded, February 2021, £6.4bn of additional borrowing was counted. The BoE adds that gross lending reached a new high in March, too – £35.6bn in total.

The value of homes sold in the UK hit £149bn in the first 15 weeks of this year, almost double the amount in the same period in 2020 and 2019, according to Zoopla. This surge was “fuelled by the enduring ‘search for space’ that emerged during the pandemic and shaped the market over the past 12 months”, says the property portal’s monthly House Price Index. One in every 50 homes was sold between 1 January and 15 April, up from one in every 100 homes during the same period last year, according to the survey. Buyer demand is up 27.5% in the year to date compared to average levels in 2020 and peaked in the week following Easter, but demand has fallen back since the first stage of lockdown easing beginning on 12 April in England.

We think, not without intervention, it’s good to see the market doing relatively well YoY.

.. and the mortgage news, see below:

Monmouth continues to be our only ‘go to’ for new build 95% mortgages.

Barclays has made a change to our competitive exclusive remortgage and purchase fixed rates.  The changes, detailed below, include a new 70% LTV Great Escape 2 year fixed to replace our existing 65% LTV product and the change to our purchase exclusive takes account of Barclays’ recent increase to the maximum loan size allowable for flats and houses at greater than 85% loan to value.  This includes an increase from £500,000 to £570,000 for houses and from £220,000 to £275,000 for flats. 

Withdrawn exclusive remortgage product:

  • 1.47% Great Escape* 2 Year Fixed, £0 product fee, 65% LTV, Loans £50k – £2m

New exclusive remortgage product:

  • 1.65% Great Escape* 2 Year Fixed, £0 product fee, 70% LTV, Loans £50k – £2m

*Barclays’ Great Escape products come with a free non-disclosed valuation, free legals plus £250 cashback or £350 if your client opts to use their own solicitor

                                Exclusive purchase product remains unchanged but end date has been extended to 31 August:

  • 3.11% 2 Year Fixed, £299 product fee, 90% LTV, Loans £5k – £570k

Please note – as with Barclays’ core range products, this exclusive is available for all buyer and property types, including New Build, subject to meeting criteria – Max LTV for residential New Build is 90% for houses and 85% for flats and maisonettes.

30/04/2021

The Monmouth has been our ‘go to’ for new build 95% mortgages but The Tipton has come out and told us they are now looking at 95% mortgages, they just need to work out their product for it. We will keep you posted.

A frenzy of activity has driven UK property prices to a record high this month. Rightmove said the average asking price jumped by 2.1% in April to a new all-time high of £327,797, an increase of £6,733 from March.

Most of the news we are seeing is still focused on 95% mortgages and there is lots of talk about fire safety/cladding now, so it’s difficult to find our usual useful gems.

23/04/2021

Great news, we can now reveal that the lender who is offering 95% mortgages for new build is:

 Monmouthshire Building society

 2 year fixed rate at 3.99%.

  • No fees.
  • Max loan £300K.
  • Houses & Flats.

We have spoken to many lenders this week and although 95% mortgages, for new build, is slow to come out of the traps, most are optimistic they will have new products in the coming weeks.

On the other hand some are ok to offer to JBSP (Joint borrower sole proprietor) that do unlock other 95% mortgages ie. Saffron BS. For those that aren’t familiar, This means an applicant with a lower salary can get support from a family member, partner or friend to jointly apply for a mortgage, but they won’t be a registered legal owner of the property.

Here are some other useful/interesting pieces of info coming out of the market.

House prices increased by 8.6% in the year to February, marking the highest annual growth rate in more than six years, according to the latest figures from the Office for National Statistics. The annual increase was up from 8% in January and the biggest year-on-year jump since October 2014.

The best mortgage option for affordability is not from one of the top 10 lenders in nearly three quarters of cases. Analysis of data taken from thousands of cases processed through MBT Affordability found that the best option for customers who want to maximise their affordability is from a lender outside of UK Finance’s list of the top 10 lenders on 73% of cases, so don’t be shocked to see some smaller lenders/building societies be used more often.

16/04/2021

Here are some useful/interesting pieces of info coming out of the market and even more news on 95% mortgages:

Halifax has revealed it will be launching its 95% LTV deals on Monday with help from the government’s Mortgage Guarantee Scheme. The lender has just shared details of the rates and says that borrowers will need an “enhanced credit score” to qualify. It will be offering a two-year fixed at 3.73% with a £999 fee or at 4% with no fee. Alternatively, borrowers can fix for five years at 4% with a £999 fee or at 4.2% with no fee.

Atom has returned to 95% LTV lending with a choice of two and five-year fixed rate deals. The app-based lender is offering a two-year fixed rate at 4.09% and a five-year fixed at  4.14%. Both products have no fee, come with £500 cashback and a free standard valuation. The deals are available for both purchases and remortgage.

The lenders which have launched new 5% deposit mortgage products have done so with restricted criteria, as they take a gentle approach to returning to this market. The criteria restrictions vary quite significantly lender by lender, so it is vital you are speaking to an intermediary who can access all of these lenders so that they can navigate through the options for you.

Some of the criteria restrictions to look out for:

      • Some of the options are for first-time buyers only.
      • Some lenders are only lending on houses, not flats or new build properties.
      • Most lenders are capping at 4.49x your income.
      • Some lenders are offering five-year fixed rates only.
      • The interest rates are higher than current mortgages available to those with a 10% deposit, and criteria is a little more restrictive in terms of maximum borrowing and credit score requirements. As such, it is crucial you look to take advice from a mortgage intermediary on the options available.

Weekly New Build news bulletin

  

02/07/2021

Virgin Money has launched two new shared ownership green new build mortgages and reduced rates across its residential range by up to 52bps. The new shared ownership green mortgage products are available up to 85% LTV with two-year fixed rates starting at 2.28% and a five-year fix available at 2.63%, both with a £995 fee. Virgin has also launched a new intermediary exclusive five-year fixed rate at 2.15% up to 80% LTV with a £995 fee and £1,000 cashback. Rates have been reduced across Virgin’s core residential range by up to 52bps. The largest reduction is to a five-year fixed rate fee-saver product at 75% LTV, which is now available at 1.76%. Green mortgage products at 85% LTV have been reduced by up to 10bps and are now available at 2.13% fixed for two years and 2.48% for five years, both with a £995 fee.

Nationwide has reduced residential mortgage rates by up to 0.35% across selected fixed and tracker products up to 95% LTV. For first-time buyers, a two-year fixed rate at 95% LTV has been cut by 0.15% to 3.64% with no fee, while a five-year fix has been lowered to 2.54%, with a £1,499 fee.

Following the extension in March, the full stamp duty holiday came to an end this week (30 June).You will likely have seen lots of stories about buyers rushing to complete before this date, but the good news is a reduced stamp duty holiday is still in place until 30 September. The existing stamp duty holiday was introduced in June last year as a measure to help boost the housing market following its closure in the first lockdown. It meant for buyers that the stamp duty nil band, the minimum purchase price at which stamp duty is eligible, was increased from £125,000 to £500,000. This stamp duty holiday was then extended until 30 June. However, the government also confirmed that this nil rate band would then be set at £250,000 until 30 September, giving an additional benefit for buyers who complete between 1 July and 30 September. As such, there is still a saving of up to £2,500 available to those who complete on a purchase before 30 September.

25/06/2021

Some interesting news coming out of the market this week, see below:

 All average fixed mortgage rates dropped this week, says Moneyfacts. The average two-year fixed rate fell 2 basis points, from 2.58% to 2.56% and the average three-year fixed rate dropped 5 basis points, from 2.73% to 2.68%. In the meantime, the average five-year fixed rate shed 2 basis points, from 2.81% to 2.79% and the average 10-year fix decreased slightly, from 2.99% to 2.98%.

 First-time buyers can save up to 30% when buying a new-build home under the government’s First Homes scheme. The government says the new discount scheme will ‘provide a route for first-time buyers to stay in their local areas, rather than being forced out due to rising prices.’ The following lenders have signed up so far: Chorley Building Society, Darlington Building Society, Halifax, Leeds Building Society, Mansfield Building Society, Nationwide and Newcastle Building Society. How many First Homes will be available? The first properties to be sold under the scheme is in Bolsover in the East Midlands, but it may be some time before the scheme really gets into gear. The government says further sites will be launched in the next few weeks. It anticipates 1,500 First Homes becoming available by the end of 2021, and at least 10,000 a year thereafter.

 The number of properties that sold for more than their asking price in May beat previous records for the second month in a row, the latest figures from NAEA Propertymark reveal. The trade body for estate agents found that 33% of homes achieved more than their original listing price, up from 32% in April. The gap between demand and supply continues to drive prices upwards as there were just 25 properties available per branch in May, which is the lowest figure since 2002. On the other hand, the number of househunters per branch increased from 427 in April to 506 in May, which is a record for that month. As a result there were 20 buyers chasing each property on the market.

18/06/2021

Some interesting news to share with you today:

House prices in the UK rose 8.9% in the year to April, show new figures from the Office for National Statistics. This is slightly below March’s figure of 9.9% and means that average house price in the UK is now £256,000. In England, an 8.9% annual rise saw the average house price move to £268,000 and in Wales, a 15.6% increase left the average house price at £185,000. Scotland witnessed a 6.3% rise across the same time frame, giving an average house price of £161,000 and in Northern Ireland, growth of 6% gives an average house price of £149,000 as of April. Meanwhile, London chalked up the lowest annual growth for the fifth month in a row, at 3.3%. The North East came out on top by this metric, recording 16.9% growth with the Yorkshire and the Humber second at 12%, almost tied with the North West, at 11.8%.

Skipton has just announce a new 90% deal for new build.

    • 3.16% Fixed rate
    • 4.64 Reverting rate
    • £995 Fee
    • £5,000 Min loan
    • £500,000 Max loan
    • No charge for a mortgage valuation

The UK economy surged 2.3% in April – the fastest monthly growth since July 2020, and a sure sign that a “rapid recovery is well underway”. GDP is now 1.2% above its initial recovery peak in October 2020, according to Office for National Statistics (ONS) data, published today (11 June). April’s growth left GDP up a massive 27.6% up from its low point in April 2020, but still down 3.7% on its pre-pandemic level in February 2020. The surge was driven largely by the service sector, which enjoyed a 3.4% bump as consumer-facing services re-opened in line with the easing of coronavirus restrictions. Commentators say caution should be exercised regarding the final stage of reopening on 21 June. However, any delay is unlikely to detrimentally affect the economy in the longer term.

 Since the pandemic both the average cost of a wedding and the price of a deposit on a home have increased somewhat. But when it comes to choosing which to prioritise it would appear homebuying dreams are a priority for more couples than tying the knot. This is according to new research by Direct Line Life Insurance in which 12% of people quizzed believed taking out a mortgage was more important than getting married. If this percentage were to be applied across the population it would suggest 6.3 million UK adults would prioritise the mortgage over their wedding plans. Indeed the research also found 76% thought buying a home was an important life goal compared to 64% who viewed marriage in the same way. And while the former was of equal importance to men (77%) and women (76%), getting married was slightly more important to women (68%) than to men (61%). In the UK, around 5% of those who have been married prioritised buying a property over having a wedding, while around 3% delayed buying a property so they could have the perfect wedding day. With the average cost of doing both exceeding £80,000, it is no wonder people feel the need to prioritise one over the other said Direct Line. The average age to get married currently stands at 37, when the typical salary is £32,700. On this salary, couples would need to save 10% of their salary for 15 years to be able to fully fund both a wedding and a mortgage.

11/06/2021

Some interesting news to share with you today:

The average house price in the UK lifted to £261,743 in May, according to the latest index from Halifax. This is a 1.3% increase on the average price in March and an annual jump of 9.5%. The lender says prices hit “another record high in May”, with properties rising by more than £22,000 over the past year, and more than £3,000 in the last month alone.

The number of mortgage products on the market has exceeded 4,000 since coronavirus hit the UK’s shores. Data from Moneyfacts shows that as of the start of June 2021, there were 4,243 mortgages for potential borrowers to choose from, up from 3,927 at the start of May 2021. In June 2020, there were just 2,810 mortgages on the market. As well as choice improving overall, the number of 95% LTV mortgages on the market increased from 112 in May to 192 in June.

The term ‘furloughed workers’ has dropped out of the list of top broker criteria searches for the first time since the pandemic began, according to Knowledge Bank. It had spent more than a year among the top five most-searched terms following the first March 2020 lockdown. The survey adds, this was the first month since the health crisis began that no Covid-related searches featured, suggesting “sunnier times on the horizon as more people return to work, as it hints that we are beginning to return to normality”.

The gap between supply of new property listings coming onto the market and demand from those looking to buy was its widest for more than seven years in May as the rush to beat the end of the stamp duty holiday continues, according to the latest index from the Royal Institution of Chartered Surveyors. The number of people looking to buy a new home continued to rise in May, with a net balance of 32% of surveyors reporting an increase in prospective buyers. At the same time a net balance of -21% respondents reported another fall in the number of new listings being brought to market. The disparity between new buyer enquiries and new sales instructions is at its widest since November 2013.

 

04/06/2021

Some interesting news to share with you today:

The number of properties sold this year is set to reach the highest level since the global financial crisis, Zoopla has forecast. Its projections come as the website’s latest house price index shows asking prices increased by 4.1% in the year to April, to reach an average of £228,300. Home sales are on track to hit 1.52m this year, an increase of 45% from 1.05m in 2020, the property portal predicts. It says that with average annual transactions rarely exceeding 1.2m per year over the last decade, this would mark the highest number of sales since 2007 and make 2021 one of the top 10 busiest years since 1959.

Homemovers have “emerged from the shadows” since last summer, says UK Finance, with its latest quarterly figures showing the number of transactions of this type outnumbering that of first-time buyers. Homemover numbers have been at approximately half their typical levels seen in 2005 to 2007 since the financial crisis in late 2008. However, in Q1 2021, activity leaped by 82% compared to Q1 2020, bringing volumes to a level not seen since 2007.” There were 131,980 homemover loans made in the first three months of the year, the data shows, which compares to 97,450 loans made to FTBs during the same time frame.

There are a growing number of 95% deals direct with lender and there are also a number of specialist 95% schemes getting closer to launch. This will help cushion the impact of property rate caps as those schemes are likely to have a much higher caps. 

Recent research suggests that most buyers would still have purchased without the stamp duty holiday. Many buyers have said that lockdown has re-focused their feeling about space at home e.g Many buyers are moving to have more home space due to working from home and office space etc.

 

28/05/2021

Some interesting news to share with you today:

Virgin Money has launched a new mortgage with lower rates of interest to customers buying energy-efficient, new-build homes.

The firm says its Greener Mortgages are for borrowers who buy new homes, which have an energy performance certificate or predicated energy assessment rating of A or B. The range is open to first and next time buyers and includes Help to Buy equity loan options. The product features a range of two and five-year fixed-rate mortgages, which come with cashback to help towards valuation costs.

New build purchase mortgages rates include:

  • 85% loan-to-value two and five-year fixed rates, starting from 2.33%.
  • 75% LTV two and five-year fixed rates, starting from 1.44%.
  • 65% LTV two and five-year fixed rates, starting from 1.25%.

The Help to Buy equity loan rates are:

  • 75% LTV two and five-year fixed rates, starting from 2.00%
  • 55% LTV two and five-year fixed rates, starting from 2.00%.

Accord are pleased to announce they are improving their higher LTV mortgage range to include new build options up to 90%.

What’s new?

For borrowers buying a new build with a maximum loan size of £500,000, the new range includes:

  • Two-year fixed rate at 3.70%
  • Five-year fixed rate at 3.76%

For borrowers requiring a maximum loan size of £600,000, the following products are available:

  • Two-year fixed rate at 3.80%
  • Five-year fixed rate at 3.86%

All four products come with a £495 completion fee, £750 cashback and free standard valuation. The LTI ratio is capped at 4.49% and new build flats are not permitted.

There was a 179.5% jump in residential transactions within the UK in the year to April 2021, new figures from HMRC show. The provisional, seasonally adjusted estimate comes in at 117,860 transactions for April 2021 compared to 42,160 in April 2020. This is the busiest April on record since 2007, which saw transactions numbering 126,450.

 

21/05/2021

Update on  95% Mortgages:

We still have the Monmouthshire looking at new build and we keep in close contact with all the lender BDM’s in case of any changes. As of today there are no other lenders looking at new build.

Some more interesting pieces of info coming out of the market:

Changes to the housing market wrought by the pandemic may be here to stay, a senior Bank of England member is due to say in a speech today. The comments come from BoE deputy governor for financial stability Sir Jon Cunliffe, who will be talking in front of the Law Society. He describes the UK housing market during the decade before the pandemic as having been in a “snooze” – a period where, “house prices grew broadly in line with incomes, having grown at double the rate of income in the previous twenty to thirty years. ”The most recent data available shows that property prices rose 10.2% in the year to March 2021, however. Effectively, the UK housing market has returned to pre-financial crisis levels of activity and price growth rates.

This disparate performance may be an early indication that a shift in the composition of housing demand may have begun, partly because of a change in both employers’ and employees’ expectations in maintaining a full-time office presence.

A structural shift in more working from home is likely to lead to preferences for larger homes, with less weight attached to considerations around commuting times relative to pre-pandemic.

Demand for city centre locations and flats is beginning to return, fuelled by the easing of restrictions and the government’s Mortgage Guarantee Scheme, according to Rightmove. The property website says that the jump in the number of people contacting agents about its flat listings has been higher than for any other property type, up by 39% since January. Demand for city centre properties is up by 35% compared to a 32% jump in demand for homes in villages.

 

Consumers looking for a new mortgage deal will likely welcome new research which has found that there has been an increase in mortgage deals month-on-month, with deals requiring a small deposit seeing the biggest increase. The research, which is due to be published in the Moneyfacts UK Mortgage Trends Treasury Report, found that the total number of mortgage deals available to consumers increased by 85 between April and May, up from 3,842 to 3,927.

14/05/2021

Here are some interesting pieces of info coming out of the market:

The number of new homes registered in Q1 2021 was 36,863, up 10% on the same period last year. Out of this total, 26,985 were in the private sector, also up 10% on last year, while 9,878 were in the rental sector, up 13% on Q1 last year. New home completions in Q1 were 33,074. Of the homes registered, 12,583 were detached; 11,199 were semi-detached; 7,022 were apartments; 5,468 were terraced; and 591 were bungalows.

Construction output increased by 5.8% on a monthly basis in March this year. Totalling £14.25bn of output, this is the most rapid growth rate witnessed since July 2020, when output grew by 17.8%. This latest construction output figure is 2.4% – or £334m – above the February 2020 pre-pandemic level. Measured quarterly, construction output grew by 2.6% in Q1 2021, with a 2.8% rise in new work and a 2.2% increase in repair and maintenance the main drivers behind this. During the first quarter of this year, the data goes on to show, new orders increased by 12.2, totalling £1.23bn, compared with Q4 2020.

A bit political but some very interesting statistics coming from YouGov:

More Conservative voters than Labour supporters think they will own their home by 30, and more of those who voted Remain than Leave say they will be on the property ladder by 40, according to a YouGov poll. The survey found that 41% of Conservative voters said they would have the keys to their own home between 25 and 30, compared to 28% of Labour supporters who voted in the 2019 general election. Just 8% of Conservative voters thought it would take them between 31 and 40, while 38% of Labour supporters thought that was when they would be able to own a house. When it comes to those who voted Remain in the 2016 Referendum, 64% thought they would have their own home by 40, while just 37% of Leave voters thought the same. A series of studies have pointed out that a greater proportion of Remain voters have degrees and earn higher salaries, than Leave supporters. Across the UK population, 65% of the country cited by age 40 when the pollster asked, “At what age do you think you will be able to own your own home?”. Within this group, 35% said they would achieve this by 30. In the more affluent capital, political allegiances make less difference to homeownership aspirations. In London, 63% of Conservative voters thought they would live in their own home by 40, while 72% of Labour supporters think the same. Although, 71% of Remain voters expect to own their own home by 40 in the capital, while just 46% of Leave supporters have the same expectation. Across the country, women have far greater homeownership aspirations. Among women, 77% wanted to be in their own home by 40, while 57% of men thought the same. And among younger people, aged 18 to 24, 55% of them said they would be on the property ladder by 30, with a further 31% saying they would make it onto the first rung by 40.

YouGov interviewed a weighted sample of 1736 adults across the UK between 31 March and 1 April. In London, it interviewed a weighted sample of 2207 adults between 19 March and 1 April.

07/05/2021

A couple of positive takeaways from the market:

Net mortgage borrowing in March hit £11.8bn, Bank of England data details – the biggest number seen since the bank started tracking this data in April 1993. This blows past the last record high, in October 2006, when an additional £10.4bn was borrowed against homes. In the previous month recorded, February 2021, £6.4bn of additional borrowing was counted. The BoE adds that gross lending reached a new high in March, too – £35.6bn in total.

The value of homes sold in the UK hit £149bn in the first 15 weeks of this year, almost double the amount in the same period in 2020 and 2019, according to Zoopla. This surge was “fuelled by the enduring ‘search for space’ that emerged during the pandemic and shaped the market over the past 12 months”, says the property portal’s monthly House Price Index. One in every 50 homes was sold between 1 January and 15 April, up from one in every 100 homes during the same period last year, according to the survey. Buyer demand is up 27.5% in the year to date compared to average levels in 2020 and peaked in the week following Easter, but demand has fallen back since the first stage of lockdown easing beginning on 12 April in England.

We think, not without intervention, it’s good to see the market doing relatively well YoY.

.. and the mortgage news, see below:

Monmouth continues to be our only ‘go to’ for new build 95% mortgages.

Barclays has made a change to our competitive exclusive remortgage and purchase fixed rates.  The changes, detailed below, include a new 70% LTV Great Escape 2 year fixed to replace our existing 65% LTV product and the change to our purchase exclusive takes account of Barclays’ recent increase to the maximum loan size allowable for flats and houses at greater than 85% loan to value.  This includes an increase from £500,000 to £570,000 for houses and from £220,000 to £275,000 for flats. 

Withdrawn exclusive remortgage product:

  • 1.47% Great Escape* 2 Year Fixed, £0 product fee, 65% LTV, Loans £50k – £2m

New exclusive remortgage product:

  • 1.65% Great Escape* 2 Year Fixed, £0 product fee, 70% LTV, Loans £50k – £2m

*Barclays’ Great Escape products come with a free non-disclosed valuation, free legals plus £250 cashback or £350 if your client opts to use their own solicitor

                                Exclusive purchase product remains unchanged but end date has been extended to 31 August:

  • 3.11% 2 Year Fixed, £299 product fee, 90% LTV, Loans £5k – £570k

Please note – as with Barclays’ core range products, this exclusive is available for all buyer and property types, including New Build, subject to meeting criteria – Max LTV for residential New Build is 90% for houses and 85% for flats and maisonettes.

30/04/2021

The Monmouth has been our ‘go to’ for new build 95% mortgages but The Tipton has come out and told us they are now looking at 95% mortgages, they just need to work out their product for it. We will keep you posted.

A frenzy of activity has driven UK property prices to a record high this month. Rightmove said the average asking price jumped by 2.1% in April to a new all-time high of £327,797, an increase of £6,733 from March.

Most of the news we are seeing is still focused on 95% mortgages and there is lots of talk about fire safety/cladding now, so it’s difficult to find our usual useful gems.

23/04/2021

Great news, we can now reveal that the lender who is offering 95% mortgages for new build is:

 Monmouthshire Building society

 2 year fixed rate at 3.99%.

  • No fees.
  • Max loan £300K.
  • Houses & Flats.

We have spoken to many lenders this week and although 95% mortgages, for new build, is slow to come out of the traps, most are optimistic they will have new products in the coming weeks.

On the other hand some are ok to offer to JBSP (Joint borrower sole proprietor) that do unlock other 95% mortgages ie. Saffron BS. For those that aren’t familiar, This means an applicant with a lower salary can get support from a family member, partner or friend to jointly apply for a mortgage, but they won’t be a registered legal owner of the property.

Here are some other useful/interesting pieces of info coming out of the market.

House prices increased by 8.6% in the year to February, marking the highest annual growth rate in more than six years, according to the latest figures from the Office for National Statistics. The annual increase was up from 8% in January and the biggest year-on-year jump since October 2014.

The best mortgage option for affordability is not from one of the top 10 lenders in nearly three quarters of cases. Analysis of data taken from thousands of cases processed through MBT Affordability found that the best option for customers who want to maximise their affordability is from a lender outside of UK Finance’s list of the top 10 lenders on 73% of cases, so don’t be shocked to see some smaller lenders/building societies be used more often.

16/04/2021

Here are some useful/interesting pieces of info coming out of the market and even more news on 95% mortgages:

Halifax has revealed it will be launching its 95% LTV deals on Monday with help from the government’s Mortgage Guarantee Scheme. The lender has just shared details of the rates and says that borrowers will need an “enhanced credit score” to qualify. It will be offering a two-year fixed at 3.73% with a £999 fee or at 4% with no fee. Alternatively, borrowers can fix for five years at 4% with a £999 fee or at 4.2% with no fee.

Atom has returned to 95% LTV lending with a choice of two and five-year fixed rate deals. The app-based lender is offering a two-year fixed rate at 4.09% and a five-year fixed at  4.14%. Both products have no fee, come with £500 cashback and a free standard valuation. The deals are available for both purchases and remortgage.

The lenders which have launched new 5% deposit mortgage products have done so with restricted criteria, as they take a gentle approach to returning to this market. The criteria restrictions vary quite significantly lender by lender, so it is vital you are speaking to an intermediary who can access all of these lenders so that they can navigate through the options for you.

Some of the criteria restrictions to look out for:

      • Some of the options are for first-time buyers only.
      • Some lenders are only lending on houses, not flats or new build properties.
      • Most lenders are capping at 4.49x your income.
      • Some lenders are offering five-year fixed rates only.
      • The interest rates are higher than current mortgages available to those with a 10% deposit, and criteria is a little more restrictive in terms of maximum borrowing and credit score requirements. As such, it is crucial you look to take advice from a mortgage intermediary on the options available.
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