UK Mortgage & Property Related News
Such was the effect on households of the rise in the cost of mortgage deals that followed the Liz Truss mini-Budget in September 2022 that Chancellor Rachel Reeves is planning legislation intended to prevent a repeat of similar shock announcements on spending and tax.
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She promised her government would build 1.5 million homes over the next five years, as pledged in Labour’s election manifesto.
The party is set to reintroduce compulsory housebuilding targets, encourage development of poor-quality areas in the green belt known as ‘grey belt’ land, and make extra funds available for hundreds of new planning officers.
Speaking to business leaders at the Treasury on Monday, Reeves promised to focus on kickstarting economic growth in part by overhauling the planning system to speed up the delivery of more housing.
However, Reeves warned that this was not a “green light” to any kind of housing development, and that the right “mix” of affordable housing and homes for social rent would be built.
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My husband and I jointly own our home, which has a £86,000 mortgage left to pay. It has 18 years left and we have one year remaining on our current 1.69 per cent fixed rate.
Our property has about £260,000 equity in it due to house prices rising in the past and extensive renovations.
We are both 49 and work full time on average salaries. We have no pension apart from state pension; our only asset is the property. We have a plan to downsize once our daughter, who is 10, leaves home to help pay for retirement.
My question is, is it worth trying to pay the mortgage off faster?
We could probably put a £20,000 lump sum towards it, and make an overpayment of £500 each month. This would mean we could pay it off in six years rather than 18.
But would we be better off just putting the money into pensions instead?
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Estate agents’ body Propertymark has issued a report called ‘A Dickensian Legal Process’ exploring why it takes long and longer to exchange contracts on a property for sale.
In March 2016 78% of transactions progressed from offer acceptance to exchange of contracts within 12 weeks, whereas in March 2024 the figure was just 29%.
While most agents in the report blame solicitors’ ways of working for delays, at least one has it in for lenders, saying: “I think lenders are taking too long to send out mortgage offers. Generally, the whole system is much slower to the previous 30 years.”
Timothy Douglas, head of policy and campaigns at Propertymark, comments: “It is not new news that the amount of time taken to complete a purchase on a home is becoming increasingly tedious and lengthy. However, it’s important more than ever considering that the time taken to complete is up to six months and longer in some cases, to understand the fundamental issues causing this.
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Mortgage rates have been falling in recent weeks, which opens up opportunities for buyers and homeowners to save on their monthly payments.
Last week, for example, Barclays cut its mortgage rates by up to 0.33 percentage points and Halifax, First Direct, Nationwide and Virgin Money also made cuts.
Many people stick with the same lender when the time comes to remortgage, in what is knowns as a product transfer.
But often it pays off to move bank or building society, as the one you are with may not offer the best or cheapest mortgage for you.
You told me you have researched today’s rates using This is Money’s mortgage comparison tool, which is a great place to start and will give you a flavour of the best deals.
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Barclays is cutting selected fixed rates for residential purchase and remortgage by up to 0.33 percentage points, laying the gauntlet down to other lenders with its table-topping rates, writes Jo Thornhill.
The latest reductions will push Barclays five-year purchase fixed-rate to the top of the best buy tables with a rate of 4.09% (60% loan to value) with an £899 fee. Barclays Premier banking customers can secure the same deal at a rate of 4.08%.
Barclays has also slashed remortgage rates and is offering two-year fixed rates from 4.70% (4.67% for Premier banking customers) with a £999 fee (60% LTV) and equivalent five-year rates from 4.36% (4.31% for Premier customers).
Coventry for Intermediaries has cut selected residential fixed rates by up to 0.18 percentage points and deals across its buy-to-let range by up to 0.15 percentage points.
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NatWest has launched an “Airbnb mortgage” to help borrowers who are struggling to pay their mortgage amid the cost of living crisis.
The new mortgage deal will offer homeowners more “flexibility” if they wish to share a spare room or their entire home with guests.
New and existing customers at the bank will no longer need to apply and pay for a “Consent to Let,” providing they follow the listing rules.
Customers must only let a room in their home for up to 90 days of the year and it has to be through an “approved platform” like Airbnb.
According to NatWest, the typical host in the UK earns almost £5,500 a year on Airbnb. This is enough to cover 69 per cent of the average annual mortgage payment which can provide “a significant boost” to families and households who are struggling to make ends meet.
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Competition between mortgage lenders has intensified ahead of a key decision on interest rates by the Bank of England.
A host of lenders have made reductions to the cost of new fixed-rate mortgages in recent days.
Brokers expect further cuts to come, but mortgage rates remain much higher than homeowners became accustomed to for a decade.
Lenders’ funding costs have hinted at falling with the Bank forecast to cut benchmark interest rates for the first time in four years.
Analysts believe that move, from the current 16-year high of 5.25%, could come on 1 August, although this remains far from certain.
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More than a fifth, 22%, of prospective homebuyers plan to improve the energy efficiency of their residences if it means they get a cheaper mortgage rate, research from a broker found.
A study from Mortgage Advice Bureau (MAB) found that 36% would make their homes greener to enhance the livability of their properties while 32% believe better energy efficiency would make their properties more attractive when it was time to sell.
MAB’s research also revealed that 81% of prospective homebuyers were already planning to make their future homes more efficient.
For 58% of respondents, the reason for doing this was to lower their energy bills, while 32% wanted to make their future home more appealing. Some 44% felt this was the best thing to do for the environment.
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House prices in the UK were largely flat in June, down just 0.2% on a monthly basis, the latest Halifax House Price Index has found.
On an annual basis, house prices were up marginally, with growth of 1.6%, similar to the 1.5% recorded a month prior.
The average house price now stands at £288,455, down slightly from £288,931 in May.
The strongest property price growth was recorded in Northern Ireland, where growth of 4% was seen in the year to June and on a monthly basis, houses rose 3.3%.
The average price of a property in the country is now £192,457.
Of England’s regions, the North West saw the greatest house price rise, up 3.8% annually to an average of £231,351.
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