Catch up on Mortgage Strategy’s most popular stories this week. Santander offers latest sub-5% resi deals amid rate cut round and Decreasing risk of rate rise this winter. Read more below:
Santander offers latest sub-5% resi deals amid rate cut round
Santander for Intermediaries introduced a new five-year fixed-rate deal for residential purchases at under 5%, simultaneously reducing all fixed-rate offerings for residential and landlord clients across its new business and product transfer ranges. The changes took effect on September 26th.
Laker to stand down from Mortgage Intelligence role
Sally Laker, who has spent 27 years at Mortgage Intelligence, has revealed her retirement plans for 2024. She will be passing the torch to John Cupis from Dynamo, who will assume the role of Managing Director starting in January 2024. While the specific retirement date has not been confirmed, Laker will remain onboard as a director to support Cupis and the team during this transition period.
Precise Mortgages lowers ICR tests for landlords
Precise Mortgages has made significant adjustments to its interest cover ratio assessments and stress rates for landlords. The specialist lender has streamlined its minimum interest cover ratio criteria for personal ownership applications and enhanced the evaluation of buy-to-let affordability, particularly for short-term fixed-rate and variable-rate trackers. These changes are especially beneficial for higher rate and additional rate taxpayers.
Four in five UK landlords had already prepared for EPC regs
Shawbrook’s research shows that 80% of UK landlords had proactively prepared for the 2025 EPC regulation deadline. This regulation, which has since been canceled, originally mandated that rental properties meet a minimum EPC rating of C by 2025 for new tenancies and for all rental properties by 2028.
Decreasing risk of rate rise this winter: Rightmove
The key takeaway from last week for prospective mortgage seekers is the prevailing market expectation that the base rate has reached its peak, as noted by Rightmove’s mortgage expert, Matt Smith. Nonetheless, Smith acknowledges that there remains a substantial but diminishing risk of witnessing one more rate increase this winter.
Nottingham Building Society boosts proc fees, cuts rates
Nottingham Building Society has enhanced its offerings by raising broker procuration fees to 30 basis points on all residential retention products. Additionally, they have reduced rates and introduced new residential deals. Notable changes include cutting residential two-year fixed-rate offers by up to 23 basis points, introducing 75% and 85% loan-to-value deals without fees, and extending end dates to December 31 on all two-year fixed-rate products.
Property fall-throughs costing buyers and sellers £240m
New data from House Buyer Bureau reveals that the number of property transactions falling through is increasing, resulting in a collective cost of nearly £240 million to buyers and sellers in the last quarter alone. This trend represents a reversal from the two previous quarters when such incidents were on the decline.
EPC growing in importance for homebuyers: MAB
Recent research from Mortgage Advice Bureau (MAB) reveals that prospective homebuyers are giving increased importance to a property’s energy efficiency credentials when making a purchase. Nearly 74% of those planning to buy within the next two years find homes with an Energy Performance Certificate (EPC) rating of A or B more appealing compared to less energy-efficient properties.
Platform rebrands as The Co-operative for Intermediaries
Lender Platform is officially rebranding to “The Co-operative Bank for Intermediaries” as of today, September 25th. This renaming, part of The Co-operative Bank’s overall transformation and technology upgrade, aims to facilitate a customer-focused service and streamline the application process through its newly implemented system, Broker Portal.
Quantum launches 100% ICR loan for ‘mortgage prisoner’ landlords
Quantum Mortgages is launching a product on September 29th to aid “mortgage prisoners” – landlords struggling to remortgage due to high rental income margins. This offering provides a 100% interest cover ratio and is accessible on single-unit and multi-unit properties, up to 70% loan-to-value. It enables borrowers with a two-year clean repayment history to refinance, even if rental income doesn’t meet the standard 125% income coverage requirements.
