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Gross mortgage lending for April 2019 stands at £20.3bn

According to the latest Household Finance Update from UK Finance, Gross mortgage lending across the residential market in April 2019 was £20.3 billion, 1.4 per cent lower than the same month in 2018.

  • In April 2019, the number of mortgages approved by the main high street banks was 5.4 per cent higher than the same month in 2018
  • Approvals for home purchase were 8.6 per cent higher, remortgage approvals were 2.2 per cent higher and approvals for other secured borrowing were 0.8 per cent higher

THE ECONOMY

  • The Office of National Statistics reported that the Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.0% in April 2019, up from 1.8% in March 2019
  • The Consumer Prices Index (CPI) 12-month rate was1% in April 2019, up from 1.9% in March 2019.

HOUSING

Uncertainty continues to dampen the housing market according to Nationwide figures

  • Annual house price growth remained subdued at 0.9% in April
  • Prices rose 0.4% month-on-month, after taking account of seasonal factors

Robert Gardner, Nationwide’s Chief Economist commented:

“While the ongoing economic uncertainties have clearly been weighing on consumer sentiment, this hasn’t prevented further steady gains in the number of first time buyers entering the housing market in recent quarters’

Henry Knight, Managing Director of Springtide Capital commented:

‘Buyer confidence remains relatively low, a likely consequence of the continued Brexit-related uncertainty and the current political environment. On a positive note there has been a modest shift in the balance of supply and demand in favour of buyers over the last several months’

Bank of England Statistics for April 2019

  • Net mortgage lending was £4.3 billion in April, slightly higher than the average of £3.8 billion seen over the previous six months
  • Net mortgage borrowing by households was strong for the second month in a row, relative to the recent past, in April at £4.3 billion. Over the previous six months it averaged £3.8 billion. The annual growth rate of mortgage lending remains unchanged at 3.3%, the level it has been at since August 2018
  • The number of mortgage approvals for house purchase, a leading indicator of mortgage lending, ticked up in April to around 66,300. This was close to the average of the past two years and reversed the fall seen in March. The number of approvals for remortgaging was broadly unchanged, at around 49,400

Lending Trends

  • According to UK Finance, there were 27,370 new first-time buyer mortgages completed in April 2019, 7.9 per cent more than in the same month in 2018. There were 25,450 homemover mortgages completed in April 2019, 6.4 per cent more than in the same month a year earlier.
  • There were 18,920 new remortgages with additional borrowing in April 2019, 0.3 per cent more than in the same month in 2018. For these remortgages, the average amount taken out in April was £54,000. Additionally, 19,140 were simple pound-for-pound remortgages (with no additional borrowing), 6.2 per cent fewer than in April 2018. In total, there were 3.1 per cent less residential remortgages in April 2019 than in the same month a year earlier.
  • There were 5,100 new buy-to-let house purchase mortgages completed in April 2019, the same as this time last year. There were 14,400 remortgages in the buy-to-let sector, also the same as this time last year.

Sources:

https://www.ukfinance.org.uk/data-and-research/data/household-finance/household-lending-and-deposits

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/april2019

https://www.nationwide.co.uk/-/media/MainSite/documents/about/house-price-index/2019/Apr_2019.pdf

https://www.bankofengland.co.uk/statistics/money-and-credit/2019/april-2019

https://www.ukfinance.org.uk/data-and-research/data/mortgages/lending-trends

Buying a listed building-A challenge or a charm?

Owning a listed building has many pros and cons and according to Moneywise.co.uk and there are several aspects to consider before purchase.

England and Wales boast half a million listed buildings, each with its own story to tell.

What is Listed status England and Wales?

All buildings constructed before 1700 are listed, as are a significant amount of those built between 1700 and 1840. You can find out if a property is listed by searching for it on the National Heritage List for England.

Some modern buildings are listed too if they are considered of special importance, for example the Shadwell Basin development, Tower Hamlets, London, (above) is Grade II listed.

Listings help prevent any inappropriate renovations or alterations that could detract from a property’s historical interest.

Terminology

Grade I: This means the property is of ‘exceptional interest’. Only around 2.5% of listed buildings are Grade 1 listed.

Grade II*: This means the property is important and considered of more than special interest. Around 5.5% of listed buildings fall into this category.

Grade II: This means the building is of special interest. The vast majority of listed buildings, around 92%, fall into this category.

Homes with a heritage are usually aesthetically pleasing, positioned in prime locations as they were built a long time before any modern development. Listed homes also tend to be full of rustic charm or bursting with period features, but there are issues to consider such as more expensive insurance and renovation costs.

Pros

  • Knowing that you live in, and own, a historical building is a great feeling – you’re one of the privileged few who gets to enjoy being a part of history.
  • A listed building typically appreciates in value more than other properties – it’s almost unknown for a listed property to depreciate unless it’s been seriously damaged.
  • You may be able to get a grant for repair/upkeep of your listed building.

Cons

  • Listed buildings are expensive to insure. Many new owners don’t realise this but they are liable for any previous unauthorised building or restoration work. As rebuild costs are higher for listed properties, the average insurance quote is also fairly high.
  • You may or may not be able to make alterations or renovations to the property. You must first obtain approval of Historic England or your local conservation officer. Should your local authority consider that you’re not properly preserving the building, they are within the law to take actions against you for non compliance.
  • Essential repairs or renovations that have been approved must be undertaken using the same construction methods and materials that were used when the building was originally built. This can be more expensive than traditional methods.

The pleasure that comes from owning a listed building can be tempered by the responsibility to keep it in good repair and maintain its character. Regardless of this responsibility, many people each year, decide that this is a small price to pay for the joy it provides, not just to them, but to future generations. Renovating a listed home can also be incredibly rewarding and will help preserve an intriguing and unique piece of British history.

Sources:

https://www.moneywise.co.uk/home-mortgage/improvements/five-things-to-consider-buying-listed-property

https://www.directline.com/home-cover/buying-a-listed-property

https://historicengland.org.uk/listing/the-list/

 

London-a positive place to buy

The London housing market shows resilience according to the CBRE Global Living report. According to CBRE Residential, investments in urban areas such as transport infrastructure, connectivity, retail, cultural centres and housing are key drivers of economic growth.

The coming Elizabeth line railway, that will stretch over 60 miles across London, will stop at 41 accessible stations and is expected to serve around 200 million people each year. This improvement in the connectivity of many districts will reduce journey times significantly.

The Help to Buy London scheme is set to be revised and continue for a further two years. The scheme is an equity loan provided by the Government. In the scheme, the government currently lend up to 40% of the cost of a new build home in London, so the purchaser will need a minimum 5% deposit and a 55% mortgage to make up the rest.

Currently Central London properties have an average value of £659,660 (according to the current Zoopla estimate at time of publication, these figures are subject to change) whereas the average for the rest of the UK is £236,619.

Why invest now?

As a large city, London has few areas where more properties can be built, therefore the lack of house supply will always be a factor in pushing house prices up in the long term. In the current market, many mortgage products are available plus interest rates are at a historic low so it could be viewed as a very good time to invest. London also has a large and growing rental population, with private renters currently making up 28% of the city’s households.

Discounting

Sellers are realising that if they want to progress they are going to have to offer a discount. The current economic climate means that there are many reasons why people are putting off buying.

Today, buyers are in a strong position. The biggest savings can be made in the highest-value areas such as London, where house prices have been falling and transactions have been low for the longest time. This is reflected in data by LonRes, which shows that the number of properties going under offer in the second half of last year was 6 per cent higher than the same period in 2017.

 

 

As an example of small signs of recovery in the London market, the average price for property in Islington (London Borough) stood at £794,100 in May 2019. This is a rise of 2.17% in the last three months (since February 2019) and rise of 12.07% since 12 months ago. (according to the current Zoopla estimate at time of publication, these figures are subject to change.)

Henry Knight from Springtide Capital commented:

“Clients who may have delayed for a year or two waiting for clarity, are unlikely to be willing to delay further. With mortgage rates close to historic lows, buyers across the country are getting back to business as usual and are re-establishing the search for their dream home.

With house prices in London still down from their peak, this represents a good time to buy.”

Sources:

https://www.cbreresidential.com/uk/en-GB/content/london-0

https://www.cbreresidential.com/uk/en-GB/researc

https://www.halifax.co.uk/media-centre/house-price-index/

https://www.zoopla.co.uk/house-prices/london/

https://tfl.gov.uk/travel-information/improvements-and-projects/elizabeth-line

https://www.helptobuylondon.co.uk/equity-loan/equity-loans

https://www.helptobuylondon.co.uk/

https://www.lonres.com/public/resources/latest-publications/lonres-firstsight-now-time-buy-prime-central-london

https://www.zoopla.co.uk/house-prices/islington-london-borough/

Gross mortgage lending for March 2019 stands at £20bn

According to the latest Household Finance Update from UK Finance, Gross mortgage lending across the residential market in March 2019 was £20 billion, 0.5 per cent lower than the same month in 2018.

  • In March 2019, approvals for home purchase were 9.3 per cent higher, remortgage approvals were 11.1 per cent higher and approvals for other secured borrowing were 1.7 per cent higher year-on-year.
  • The number of mortgages approved by the main high street banks in March 2019 was 9.1 per cent higher than March 2018, which was a particularly subdued month for total mortgage approvals.

THE ECONOMY

  • The Office of National Statistics reported that Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 1.8% in March 2019, unchanged from February 2019.
  • The Consumer Prices Index (CPI) 12-month rate was 1.9% in March 2019, unchanged from February 2019.

HOUSING

Halifax House Price Index

House prices in the three months to March were 2.6% higher than in the same three months a year earlier. In the latest quarter (January to March) house prices were 1.6% higher than in the preceding three months (October to December)

  • On a monthly basis, house prices fell by 1.6%
  • The average house price is now £233,181

Russell Galley, Managing Director, Halifax, said:  

“The average UK house price is now £233,181 following a 1.6% monthly fall in March. This reduction partly corrects the significant growth seen last month and again demonstrates the risk in focusing too heavily on short-term, volatile measures. Industry-wide figures show that the number of mortgages being approved remains around 40% below pre-financial crisis levels, and we know that lower levels of activity can lead to bigger price movements”.

Housing Minister warns housebuilders on Help To Buy

Help to Buy boosted the supply of new homes to 222,000 last year and the scheme has been extended a further two years until 2023.  However, allegations of poor standards and high hidden charges have been raised in recent years as numbers of new-build homes have increased.  In his speech at the Home Builders Federation annual conference, James Brokenshire, warned the UK’s biggest housebuilders that he would be “considering carefully how the developers who work with us meet the standards and quality that customers expect and deserve” before the launch of the updated Help to Buy scheme in England in 2021.

Bank of England Statistics for March 2019

The Bank of England’s Monetary Policy Committee (MPC) at its meeting ending on 20 March 2019, voted unanimously to maintain Bank Rate at 0.75%.

Henry Knight, Managing Director of Springtide Capital commented:

“The impact on Mortgages is minimal, mortgage rates have not yet begun to climb and this represents great opportunities for buyers in the current market”

Sources:

https://www.ukfinance.org.uk/data-and-research/data/household-finance/household-lending-and-deposits

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/march2019

https://static.halifax.co.uk/assets/pdf/mortgages/pdf/March-2019-House-Price-Index.pdf

https://www.ukfinance.org.uk/news-and-insight/news-in-brief/news-brief-27-march-2019

https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2019/march-2019

 

Ways to maximise the value of where you live now

In an uncertain property climate, many homeowners are considering improving their current homes with a view to adding value to the property they are in now.

A remortgage for home improvements allows a homeowner to withdraw funds from equity in their home. The equity can be used to spend on home improvements for example extensions, new bathrooms, loft conversions, possibly improving the value of the property overall. Here we outline just a few of the possible ways to do this.

 

Convert your garage into living space

Potential Value Added: 15%

Converting your garage into living space, especially if not used for a car and if you have parking space outside your property is a consideration to add value.

According to This is Money, just 22% of owners park their car in a garage in the UK and approximately 3.9 million garages have been converted into living space in the last two decades.

Not all garages are suitable for conversion and you should check if you need planning permission.

 

Extend the kitchen with a side-return extension

Potential Value Added: 15%

A side return is a narrow alley that runs adjacent to the kitchen in a typical terraced or semi-detached house. Extending the kitchen into the side return and to the full width of the rest of the house means you gain valuable space and can also improve the layout.

You’ll still have to comply with building regulations, and work will be inspected at key stages of the build, either by the local authority building department or by an approved independent inspector.

 

Loft conversion to add a bedroom

Potential Value Added: 15%

An extra bedroom can add up to 15 per cent to the value of your home, especially if it’s a loft conversion with an ensuite bathroom. Most lofts can be converted, but it’s worth getting an architect or builder to double check before you start.

The website RESI reports that it’s the loft conversion that offers more added value than building an extension. By creating a whole new room within the loft space, a bedroom with ensuite or study, more value is added than if expanding an existing space, for example a kitchen or dining space.

 

Increase living space with a conservatory

Potential Value Added: up to 10%

To merge indoors with outdoors, choose a fully glazed conservatory.

The biggest part of your conservatory will be the glass, so explore your options carefully. There are many options to suit all lifestyles.

If you are looking to remortgage, at Springtide Capital we provide high quality impartial mortgage advice. We are a specialist mortgage broking business committed to providing a personal and efficient service. We understand the complexities of finding the right loan to suit both your financial and personal circumstance.

To speak to us today, call Springtide Capital on 020 3040 4400

 

Sources:

https://www.propertypriceadvice.co.uk/home-improvements/ten-of-the-best-ways-to-add-value-to-your-home

https://www.thisismoney.co.uk/money/cars/article-3315204/3-9m-home-owners-converted-garage-living-space-20-years.html

https://resi.co.uk/advice/loft-conversions/loft-conversions-add-value-to-your-home

 

 

UK House prices and regional variations

UK House prices and regional variations

House prices remained relatively resilient in 2018, despite anxiety about Brexit and concerns about affordability. While property prices were relatively flat in 2018, some regions did perform better than anticipated.

On the whole the average British property’s value increased by £2,860 in 2018, or £8 a day according to property website Zoopla, a rise of just 1.02 per cent.

Affordability levels remain attractive in many areas outside of southern England and locations, such as the Midlands and northern cities saw strong property inflation. The best performing English region was the East Midlands, where prices rose by 2.91 per cent to an average of £220,746.

Conversely London and the South East reported stagnant or falling markets. London saw property values drop 1.67 per cent to an average of £653,587 this year, according to Zoopla.

Meanwhile, the East of England saw a 0.5 per cent fall to £357,952, but the South East and South West both saw 0.38 per cent rises to £409,923 and £307,693, respectively.

In Scotland, property values rose by 6.43 per cent, while in Wales they climbed 3.98 per cent, but in England gains were a marginal 0.58 per cent.

 

HOW PROPERTY VALUES CHANGED ACROSS BRITAIN IN 2018
Ranking Region Current average value % increase in value since January 2018
1 Scotland £195,739 6.43%
2 Wales £192,362 3.98%
3 East Midlands £220,746 2.91%
4 North East England £190,242 1.92%
5 Yorkshire and The Humber £179,809 1.64%
6 West Midlands £230,823 1.60%
7 North West England £195,897 0.45%
8 South West England £307,693 0.38%
9 South East England £409,923 0.38%
10 East of England £357,952 -0.50%
11 London £653,587 -1.67%
Source: Zoopla December 2018

 

How will what we know change post Brexit?

The market predictions for the situation post Brexit are many and varied. While nobody knows the impact it will have here are some suggested outcomes.

 

The Royal Institution of Chartered Surveyors (Rics)

2019 UK house price growth prediction: 1 per cent

 

Rics estimates that prices will rise by one per cent in 2019, although surveyors believe that uncertainty about Brexit is likely to hit the UK housing market well into next year.

The group is expecting the number of homes being sold, as well as the prices that they are being sold for, to edge down over the next three months. Residential properties are taking an average of four months to sell, the longest period since records began in 2016.

“It is evident from the feedback to the latest Rics survey that the ongoing uncertainties surrounding how the Brexit process plays out is taking its toll on the housing market,” said Rics’ chief economist, Simon Rubinsohn.

 

CBRE

2019 house price growth predictions in London: 0 per cent

 

In CBRE’s predictions for the coming years, London house prices are set to be flat in 2019, but picking up by 1.6 per cent in 2020 and by 3.5 per cent in 2021. Between 2019 and 2023, the realestate adviser is expecting growth of roughly 10.5 per cent in the capital’s house prices.

 

Savills

2019 UK house price growth prediction: 1.5 per cent

2019 London house price growth prediction: -2 per cent

 

Savills says that it is affordability, rather than Brexit, which is the major factor for the UK housing market. The property giant is forecasting that UK house prices will rise 14.8 per cent from 2019-2023, although there will be significant regional variation.

While London is projected to see growth of 4.5 per cent over this period, it will dip by two per cent in 2019, while the north west is expected to see a 21.6 per cent rise over the period. London’s prime market will also see double digit growth at 12.4 per cent.

 

 

Whatever the outcome of Brexit on the market, the fact that house purchase approvals were up in December maybe suggests that people are planning ahead and making their move before the March deadline.

 

Sources:

https://www.dailymail.co.uk/property/article-6516361/What-happen-house-prices-2019.html

http://www.cityam.com/270596/uk-house-prices-2019-experts-say-happen-after-brexit

https://www.ukfinance.org.uk/data-and-research/data/household-finance/household-lending-and-deposits

 

 

Gross Mortgage Lending Figures January 2019

According to the latest Household Finance Update from UK Finance, gross mortgage lending for January 2019 was £21.6bn, 1.5% lower than a year earlier.

  • The number of mortgages approved by the main high street banks in January 2019 was 0.3 per cent higher than the same month the previous year.
  • Approvals for home purchase were 1.5 per cent higher and approvals for other secured borrowing were 6.8 per cent higher.
  • Following several months of strong growth in remortgaging earlier in 2018, remortgage approvals were 3.1 per cent lower than in the same month the previous year.

THE ECONOMY

The Office of National Statistics reported the Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 1.8% in January 2019, down from 2.0% in December 2018.

  • The Consumer Prices Index (CPI) 12-month rate was 1.8% in January 2019, down from 2.1% in December 2018.

HOUSING

HALIFAX HOUSE PRICE INDEX

House prices in the three months to January were 0.8% higher than in the same three months a year earlier – down from the 1.3% annual growth rate recorded in December.

  • On a monthly basis, house prices decreased by 2.9% in January, following a 2.5% rise in December
  • The average house price is now £223,691
  • House prices in the latest quarter (November-January) were 0.6% lower than in the preceding three months (August – October)

 Russell Galley, Managing Director, Halifax, said:

“Attention will no doubt be drawn towards the monthly fall of -2.9% from December to January, the second time in three years that we have seen a drop as a new year starts. However, the bigger picture is actually that house prices have seen next to no movement over the last year, with annual growth of just 0.8%”

Henry Knight, Managing Director of Springtide Capital commented:

 “The last quarter in 2018 saw even more first-time buyers get a foot on the housing ladder, due partially to the competitive deals on offer. With these mortgages completed and an uncertainty in the market in general surrounding Brexit, January 2019 was always going to be a cautious month in the market”

Bank of England Statistics for January 2019

Net mortgage borrowing by households fell slightly on the month to £3.7 billion, but was slightly below the £3.9 billion average of the past six months. Mortgage approvals for house purchase (an indicator of future lending) increased in January to 66,800, slightly above the average of the previous six months of 65,500. Approvals for remortgaging ticked-up to 50,400, marginally higher that the recent average of 48,900.

Sources:

https://www.ukfinance.org.uk/data-and-research/data/household-finance/household-lending-and-deposits

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/january2019

https://static.halifax.co.uk/assets/pdf/mortgages/pdf/January-2019-Halifax-House-Price-Index.pdf

https://www.bankofengland.co.uk/statistics/money-and-credit/2019/january-2019

 

 

 

 

 

Positive Stories in an Uncertain Mortgage Climate

 

There is much uncertainty in the UK currently around Brexit and the ongoing implications for the country. The looming effect of which is an unknown for the Mortgage Industry.

The Brexit Effect:

How the mortgage market performs this year is going to be somewhat dependent on Brexit and its impact on general economic conditions and consumer confidence. There is general apprehension that buyers may remain cautious whilst waiting for the Brexit deal to complete. This may mean that the usual spike in sales in the first few months is not evident.

There are however, some positive areas in the current climate….

Low Mortgage Rates

Mortgage rates are incredibly low currently and many will want to fix into a low rate to give themselves security as we move into a period of uncertainty.

David Blake of Which? Mortgage Advisers says ‘Don’t just jump into a fixed rate without considering the alternatives – there are plenty of flexible products that would leave your options to remortgage open if rates did start to change. Brexit is still a complete unknown”.

Henry Knight, Managing Director from Springtide Capital comments:

“In using a mortgage broker, you will receive an expert opinion on which is the best mortgage for you in terms of the interest rate and the likelihood of your application being accepted. This expertise will save significant time and by having an in depth understanding of the whole market, a broker is able to add value by advising on what is and isn’t possible from the outset in this current uncertain climate”

Positive foundations for Housebuilding

Arguably the largest obstacle facing the housing market in general, is demand and was highlighted in a recent warning that English housebuilding figures are set to be the lowest in any decade since the Second World War.

The government is aiming for 30% of new housing in England to be self-build and custom build, which means there are opportunities for mortgage providers to be part of this growth.

The Autumn Budget and the extension to the Help to Buy scheme for a further 2 years was welcomed. The demand for new-build homes remains strong helping builders to plan ahead to increase output in the coming years.

Both the government and the lending community are working hard to close the supply gap, and we should expect to see this continue over the coming year.

Stewart Baseley, executive chairman of the Home Builders Federation, says: ‘Unlike the wider housing market, where transactions have dropped considerably from the historical norm, the new-build market has remained strong in recent months – a trend we expect to continue. ‘The confirmation in the Budget of an extension to the Help to Buy scheme was welcome. The scheme is ensuring demand for new-build homes remains strong [and]… the certainty of demand is enabling builders to plan ahead to increase output in the coming years, as is demonstrated by the record high number of planning permissions being granted.’

 

First Time Buyer Market Share at Highest Level Since 1995

One positive growth area currently is in the First Time buyer market. Analysis from Yorkshire Building Society estimates that 367,038 first-time buyers secured mortgages in 2018, up from 362,800 in 2017.

The current figure represents almost double that of 2008 (193,300) and stands just 9% lower than the 2006 pre-crisis peak of 402,800. First-time buyer levels are now said to represent 50% of all homes bought with a mortgage, meaning that the first-time buyer market share has reached its highest level since 1995.

Strong competition in the market that have been driving mortgage rates down have helped this figure. As have Government initiatives such as Stamp Duty relief, Help to Buy equity loans and Help to Buy ISAs.

Uncertain Times

One thing that all elements of the Mortgage market will be looking forward to is a period of stability post Brexit. And whilst there are positive steps being taken and some growth areas, Brexit is undoubtedly fuelling a sense of apprehension in the housing market. With details of the final deal still unknown, there is a high probability that both buyers and sellers will continue to hold off on making decisions. The Mortgage industry remains realistic in their expectations for 2019.

At Springtide Capital we provide high quality impartial mortgage advice. We are a specialist mortgage broking business committed to providing a personal and efficient service. We understand the complexities of finding the right loan to suit both your financial and personal circumstance.

To speak to us today, call Springtide Capital on 020 3040 4400

Sources:

 
 
 
 

Later Life Lending

 

Older borrowers are discriminated against by many lenders, but the tide is turning slowly.

The financial services industry is playing an increasingly central, and essential, role in retirement security. Growing numbers of older people face ongoing decisions about how to manage their income and assets over a longer period than previous generations, this presents both opportunity, and challenge, for the later life lending sector.

There is an ever-increasing demand for a broad range of retirement borrowing products. With the average life expectancy having risen considerably and mortgage lending requirements extending well into borrowers’ 60s and 70s, borrowers needing a mortgage into retirement are often routinely turned down by mortgage lenders on the basis of their age alone. This approach means over 50s needing to remortgage can find it difficult to secure a home loan.

There are many reasons why individuals may need to borrow later in life, from home improvements to helping children get on the property ladder.

As stated in the publication Mortgage Strategy:

‘With changing trends in home buying seeing people going through the home buying cycle later in life than a few decades ago, the retirement lending market is embarking on a period of unprecedented growth’

In a survey of intermediaries by Marsden Building Society, receiving a ‘personal approach’ from all sides was of key importance to clients.

Intermediaries were ‘adamant’ there was a need for a more personal approach to underwriting when looking at older borrowers, and it’s not always straightforward placing a later life lending case because criteria could change significantly from lender to lender.

Using a broker can be a great way of finding a lender who will consider your application – a broker will know which lenders are happy to lend to certain demographic groups.

It’s important to seek independent legal advice before taking an equity release or home reversion product in order to understand the impact any plan will have on inheritance tax planning.

Jim Boyd, chief executive of the Equity Release Council, agreed that “advice is everything”

Henry Knight, Managing Director at Springtide Capital comments:

“In an ageing population, we recognise the importance of providing specialised advice for those looking for a mortgage later in life. Later Life Lending can help a variety of client needs such as: repaying debts and mortgage, supplementing retirement income, home improvements or providing financial assistance to your family. We deliver solutions tailored to your personal situation and advise on Equity Release schemes such as Lifetime and Interest only mortgages”

To understand the features and risks of a Lifetime mortgage, speak to one of our qualified specialists about providing you with a personalised illustration.

To speak to us today, call Springtide Capital on 020 3040 4400 to book an appointment with a mortgage consultant. 

Sources:

https://www.yourmortgage.co.uk/remortgage/age-against-the-machine/

https://www.financialreporter.co.uk/later-life/fse-midlands-advisers-warned-over-retirement-interest-only-recommendations.html

https://www.mortgagefinancegazette.com/lending-news/equity-release/call-individual-approach-later-life-lending-25-09-2018/

https://www.mortgagefinancegazette.com/lending-news/whats-important-later-life-clients-05-09-2018/

https://www.mortgagestrategy.co.uk/borrowers-options-beyond-65th/

 

 

Gross Mortgage Lending for September 2018

Gross mortgage lending for September was £21.5bn

  

According to the latest Household Finance Update from UK Finance, gross mortgage lending for September 2018 was £21.5bn, 1.2 percent lower than September 2017, due to cautious buyers.

 

  • The number of mortgage approvals by the main high street banks in September was 9.1 percent lower than September 2017, and approvals for house purchases were 10.1 per cent lower.

 

  • Within the above figure, remortgage approvals were 7.4 percent lower than for the same period a year earlier.

 

  • The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.2 percent in September 2018, down from 2.4  percent in August 2018.

 

Housing

 

 

The Autumn Budget Statement

The Government delivered it’s Autumn Budget and the Chancellor of the Exchequer, Philip Hammond reaffirmed his commitment to the UK housing market with a series of announcements. We’ve covered these in more detail here and in summary:

  • A new Help to Buy scheme announced from April 2021
  • Stamp Duty relief extended to first-time buyers buying shared ownership properties
  • Affordable Homes Programme progresses
  • Further grant funding in London announced
  • Housing Revenue Account Cap is abolished

Communities Secretary Rt Hon James Brokenshire MP stated:

“This Budget provides positive news for those struggling to get on the housing ladder with certainty given on the future of Help to Buy and freeing up councils to deliver a new generation of council housing.”

Henry Knight, Managing Director of Springtide Capital commented:

 

“The decline in gross mortgage lending reflects weaker consumer confidence with affordability, Brexit and uncertainty over interest rates leading to more cautious buyers. However, measures announced in the recent Budget should help to improve accessibility for first-time buyers, although we expect the subdued activity in London’s housing market is likely to remain as buyers defer making major financial commitments.”

 

 

 

Sources:

https://www.ukfinance.org.uk/household-finance-update-september-2018/

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/september2018

https://static.halifax.co.uk/assets/pdf/mortgages/pdf/October-2018-House-Price-Index.pdf

https://www.gov.uk/government/news/budget-to-support-new-housing-high-streets-and-local-services