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Halifax joins Barclays, HSBC, NatWest, and Nationwide in slashing mortgage rates below 4%

August 12, 2024August 12, 2024 interestratesinfo

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Halifax has joined the ranks of top lenders slashing mortgage rates below 4 percent, a move anticipated to boost property sales. This week saw Barclays, HSBC, NatWest, and Nationwide also trim their leading home loan interest rates below the 4 percent mark.

These offers are currently tailored for buyers with substantial deposits and often come with hefty application fees. Yet, there’s optimism that these benefits will extend to the broader mortgage market shortly.

Halifax’s latest offerings include a five-year fixed-rate mortgage at 3.99 percent for a 60 percent loan-to-value (LTV) ratio, carrying a £999 fee. Additionally, it’s presenting a two-year fixed-rate deal at 4.36 percent with a £999 fee for up to 60 percent LTV.

First Time Buyers purchase further away to find affordable homes

August 12, 2024August 12, 2024 interestratesinfo

Moving further away from family, friends and familiar places to get onto the property ladder is becoming more common for first-time buyers, according to new research from Santander UK.

Extrapolating a survey it commissioned, it claims two thirds of Britons who bought their first home in the last two years had never seen their new neighbourhood before buying, compared to just over half (51%) of those who bought more than five years ago.

Landlord exodus ‘higher than anticipated’, says agency group boss

August 12, 2024August 12, 2024 interestratesinfo

The market is witnessing a significant shift as a number of landlords exit due to increasing legislative pressures, tax liabilities and the removal of mortgage relief, says Antony Lark, joint CEO of estate agency and lettings group Spicerhaart.

Rents have begun to stabilise, despite the exodus of landlords from the sector and resistance over rent reductions, says Lark.

He explained: “We’re noticing that the level of landlords leaving is higher than anticipated – particularly among those who’ve retired, who need the money to meet rising living costs, or are helping children buy first homes, or who’ve concerns over inheritance tax.

Flats emerge as the top buy to let investment

August 12, 2024August 12, 2024 interestratesinfo

Falling property values and soaring rents make flats the most profitable option for landlords, according to new research.

The findings from Inventory Base show that flats currently offer the highest returns for BTL investors.

Despite a slight decrease in average flat prices, rental values for flats have surged by 9.3% annually, outpacing all other property types.

The property inventory specialist compared average yields across flats, terrace homes, semi-detached and detached properties.

‘Landlord licence’ now costs average of £700 as more councils force buy-to-let owners to register

August 12, 2024August 12, 2024 interestratesinfo

Thousands of landlords in England are facing increasing costs due to selective licensing schemes imposed by local councils, according to a Freedom of Information request.

The FOI request by insurer Direct Line revealed that landlords in areas which require a licence are being charged £700 on average to get one.

Councils in certain parts of England require landlords to get the selective licences in order to to rent out property, in the hope that this will improve standards and quality.

The schemes require landlords to meet certain standards of management and maintenance and are often accompanied with regular property checks.

A licence typically lasts for a maximum of five years once granted, but councils can opt to issue them for a shorter period.

I’ve got a mortgage offer on my new home – is it worth the £1,499 fee?

August 12, 2024August 12, 2024 interestratesinfo

Question: I’m getting a mortgage of £180,000 on a £200,000 property. The rate I have secured looks good – it’s around 4.8 per cent over five years – but it comes with a hefty £1,499 fee. How important is the fee when getting the loan? Is it worth going for a worse rate with a lower fee?

Answer: Congratulations on securing a mortgage offer of £180,000 on a £200,000 property. This is with an appealing interest rate of 4.8 per cent over five years – I assume it’s the deal from HSBC.

It’s understandable to question the product fee of £1,499, which is on the higher end. You may be considering whether going for a lower £999 fee or a fee-free option from Virgin Money at 4.89 per cent might be a better choice. The product fee raises several important questions that need careful consideration.

‘I’m a property expert – this is why mortgage interest rates are dropping slowly’

August 12, 2024August 12, 2024 interestratesinfo

In positive news for mortgage borrowers, the Bank of England finally has lowered the central interest rate for the first time in four years.

Millions of homeowners are due to come off their cheaper fixed-rate mortgage deals in the coming months, leaving many questioning what type of deal to go for next.

With a 0.25 percent cut to five percent, the Base Rate is still high and the impact won’t be felt “widely”, an expert has said. However, there are deals people may want to opt for to put them in a more “favourable” position for the years ahead.

We asked Andrew Boast, a property expert at SAM Conveyancing the current mortgage market trends, his expectations for rates over the next few months, and what length deals people should look into based on current forecasts.

Connells says: “No sign of landlords quitting buy to let sector”

August 5, 2024August 5, 2024 interestratesinfo

In a statement which appears to go against the trend of much of the lettings sector, Connells says it sees no sign of landlords quitting the buy to let sector.

This appears at odds with data from some organisations and agencies – including Hamptons, owned by Connells – which appear to show fewer landlords in the sector now than in recent years.

But the Connells Group – in its trading statement for the first half of 2024 – says rental supply ended June with 24% more properties available than at June 2023.

And it says that the company “saw no significant signs of landlords exiting the market” with some 77% of properties re-let at the end of their tenancies. That’s the same figure as last year.

The average tenancy length was 30.9 months, about 10% up on a year ago.

10 essential questions to ask your mortgage lender before borrowing

August 5, 2024August 5, 2024 interestratesinfo

Buying a home can still be a smart move in today’s high-rate environment, of course, provided that the financials make sense for your budget. But given today’s elevated home buying costs, it’s crucial to gather all the information you need before making this substantial investment.

House prices record FASTEST annual growth since December 2022 last month, says Nationwide

August 5, 2024August 5, 2024 interestratesinfo

House prices recorded the fastest pace of annual growth since December 2022, according to Nationwide Building Society.

Britain’s biggest mutual revealed the average house price rose by 0.3 per cent between June and July.

Annually, house prices are up by 2.1 per cent, with the typical home now worth £266,334 – this is the biggest annual rise recorded over the past 18 months.

However, average prices are still around 2.8 per cent below the all-time highs recorded in the summer of 2022.

Property prices reached £273,751 in August 2022, before falling to lows of £257,656 at the start of this year.