Stay informed with the latest stories from Mortgage Strategy this week: Brokers express concerns over 1% mortgage deposits potentially driving up house prices, and Nationwide reduces residential rates by up to 81 basis points, introducing loans below 4%. Read more below:
Brokers fear 1% mortgage deposits will push up house prices
Brokers caution against government plans allowing homebuyers a 1% deposit, expressing concerns about potential inflation of house prices amid high demand. Prime Minister Rishi Sunak and Chancellor Jeremy Hunt are reportedly considering proposals for minimal mortgage deposits, potentially introduced in the Chancellor’s Spring Budget on March 6, as outlined in a recent Independent report.
HSBC hires Emma Hollingworth as head of specialist lending
HSBC UK appoints Emma Hollingworth as the Head of Specialist Lending. With 29 years of experience, she previously served as Managing Director at Mpowered Mortgages, overseeing its establishment and automating mortgage applications. Hollingworth has a background in mortgage advice from roles at Quilter, SimplyBiz, and Mortgage Advice Bureau.
Nationwide cuts resi rates by up to 81bps, launches sub-4% loans
Nationwide Building Society is reducing specific residential rates by up to 81 basis points, offering its lowest rate at 3.84%, the lowest in eight months. Additionally, the mutual is introducing a lineup of fixed and tracker rate products, all with a £1,499 fee.
Advisers fall 4% in ‘difficult market’: Mortgage Advice Bureau
Mortgage Advice Bureau reports a 4% decrease in its adviser count, down to 2,158, attributing the decline to a challenging market. The figure includes a reduction of 117 advisers from Fluent Money, acquired for £72.2m in July 2022. Despite the difficulties, the company notes encouraging current trading conditions as mortgage rate spikes stabilize following rising base rates and the mini-Budget.
HSBC boosts part and part LTV to 85%
HSBC has raised its maximum loan-to-value on part-and-part lending from 75% to 85%, offering customers more flexibility in managing repayment options. The bank aims to provide additional choices for borrowers looking to combine interest-only and capital repayment. Customers can now submit part interest-only applications with additional capital repayment through their mortgage broker, up to the newly increased limit of 85%.
Santander increases rates for purchase and remortgage clients
Santander for Intermediaries is adjusting certain standard residential fixed rates for purchase and remortgage clients, with increases ranging from 0.05% to 0.20%. The high street lender is also withdrawing all residential first-time buyer exclusive fixed rates that come with £500 cashback.
FOS expects 181,000 complaints driven by cost-of-living pressures in 2024
The Financial Ombudsman Service anticipates managing over 181,000 customer complaints in the coming financial year, primarily involving common issues like unaffordable lending, mortgage complications, and motor insurance cases. The service foresees an increase in disputed transactions due to a surge in financial scams. Additionally, it highlights that the challenges of the cost of living will contribute to a rise in complaints related to “irresponsible and unaffordable lending.”
Twenty7tec launches real-time Rate Watch service
Twenty7tec has enhanced its Communicate platform with a Rate Watch service, providing real-time alerts to brokers when lenders implement rate cuts. This feature enables advisers, administrators, or clients to promptly learn about rate reductions, allowing advisers to inform clients of lowered rates with the same lender before finalizing transactions. The real-time functionality is customizable through various filters, such as lender, business type, product, or loan size, enabling firms to create tailored processes for different lenders.
Mortgage network AR numbers up 110 in Q4
In Q4 2023, the number of appointed representatives (ARs) within prominent mortgage networks increased by 110, according to the latest Network League Table. The study, based on the FCA register, indicates that 1,070 AR firms exited networks, while 1,077 joined during the quarter. Paul Day, founder of Network Consulting, suggests that the figures point to a surge in new firms joining networks in Q4, rather than merely transferring from one network to another.
Suffolk BS moves into the large loan market
Suffolk Building Society has entered the large loan market by launching two 2-year fixed-rate mortgages designed for loans ranging from £1 million to £2 million. Both products—the standard residential large loan and the expat residential large loan—are accessible with a loan-to-value (LTV) ratio of up to 80%. The residential large loan product features a fixed rate of 5.19% until April 30, 2026, and afterward, it reverts to the Standard Variable Rate (SVR) minus 1.74% until July 31, 2029, with a 3% floor.
