House prices predicted to increase

The 6.1 per cent growth has been forecast by Barclays Bank, who also say buy to let investors and high net worth millennial investors will lead the boost. Barclays also predict property hotspots will emerge in the north of England thanks to employment opportunities and business start-up rates which will help close the gap on the current property hubs of London and the south-east. The report predicts the UK property market will remain buoyant with prices set to rise by an average of 6.1 per cent by 2021, despite an read more

A third of interest only mortgage to mature by 2020

Over £50 billion worth of interest-only mortgage capital is due to be paid off by 2020, according to research from Leeds Building Society. This figure represents just over 450,000 interest only mortgages in the UK and is more than one-third of the total outstanding UK interest-only mortgage stock, currently standing at 1.6m mortgages. Almost 136,000 interest-only mortgages are due to mature this year alone, with a value of almost £16 billion. Richard Fearon, Chief Commercial Officer of Leeds Building Society, read more

Stamp Duty increases causes house slump for April

There were further signs of a slowdown in the property market in April, as the number of sales fell significantly, while fewer people took out mortgages. The number of residential property transactions in the UK dropped by 22.5% between March and April, according to HM Revenue and Customs (HMRC). Analysis by the data firm Equifax also suggests that mortgage sales declined by 16% over the same period. But the figures are skewed by a series of tax changes this year and last. In April 2016, landlords became read more

House slowdown. Really ?

The number of property transactions saw a monthly decrease of 3.2% between March and April 2017, the latest statistics from HM Revenue & Customs (HMRC) reveal. In April, the seasonally adjusted figure was 20.3% higher compared with the same month in 2016 and the number of non-adjusted residential transactions was 22.5% lower compared to March. The total UK property transaction count for April 2017 was 99,910 residential and 9,980 non-residential transactions. The report by HMRC avoided direct comparisons of read more

Interest only mortgage back in the news

Interest-only risk falls, but 300,000 loans not fully repaid since 2011: CML The risk of interest-only loans is falling year-on-year, despite 300,000 such mortgages not being fully paid back at their term end since 2011, according to the Council of Mortgage Lenders. The CML says its latest member data of 90 per cent of UK residential mortgages shows that the number of outstanding residential interest-only loans has been falling by between 10 and 13 per cent a year since 2012. The trade body says that fewer than 2 read more

Possible interest rate rise

The Bank of England’s Monetary Policy Committee has voted by a majority of 7-1 to maintain Bank Rate at 0.25%, with Kristin Forbes voting to increase Bank Rate by 25 basis points. In its latest meeting, the MPC judged that inflation will remain close to trend, but hinted that "monetary policy could need to be tightened by a somewhat greater extent" if the economy follows the path outlined in its May central projection. At its May meeting, seven members thought that the current monetary policy setting remained read more

Over 65’s to have the highest mortgage debit than ever before

The amount of mortgage debt held by over 65s is set to increase by more than £19 billion by 2030, from £20.1 billion to £39.9 billion, according to a new study by ILC-UK and the Building Societies Association. The report shows that current economic trends such as house price inflation, tighter credit conditions and low real wage growth will cause a significant shift in the customer base of the mortgage market over the next 13 years. Since the financial crisis, home ownership amongst 20-29 year olds has fallen from read more

Bank of Mom and Dad, the 10th biggest lender

The "Bank of Mum and Dad" is the 10th biggest UK mortgage lender as buyers increasingly rely on financial support from their parents, a report suggests. Parents will lend £6.5bn this year, according to insurer Legal and General, and be involved in 26% of all UK property transactions. This is up from the £5bn of lending estimated in L&G's equivalent survey a year ago. The average first-time buyer requires a deposit of about £26,000, lenders say. Figures from the Council of Mortgage Lenders (CML) show that the read more