Catch up on Mortgage Strategy’s most popular stories this week. House prices suffer the largest fall in 14 years and Inflation fall gives MPC wiggle room on interest rate decision. Read more below:
House prices suffer largest fall in 14 years: Halifax
In August, average house prices fell by 4.6% compared to the previous year, the largest annual drop since 2009, due to higher mortgage costs, according to Halifax. On a monthly basis, prices declined 1.9% to £279,569, marking the fifth consecutive monthly decrease and the biggest monthly fall since November.
Aldermore prepares takeover bid for Co-operative Bank: Reports
Aldermore is gearing up to join the competition for acquiring the Co-operative Bank, which has an estimated value of £3.5 billion. The challenger bank is collaborating with BNP Paribas advisors to prepare an offer, as per reports from Sky News. Their plan is to submit their bid before the upcoming deadline set by the Co-operative Bank in early next month.
Inflation fall gives MPC wiggle room on interest rate decision
In August, UK’s annual inflation unexpectedly dropped to 6.7%, providing relief for the Bank of England regarding interest rate hikes. Slower food price increases contributed to this decline, with the consumer prices index falling from 6.8% in July, marking its sixth consecutive monthly decrease.
Impact of potential base rate rise revealed
UK Finance has disclosed the potential effects on the average variable rate mortgage if the Bank of England (BoE) opts to raise the base rate again, which is anticipated by some despite a recent decrease in UK inflation. The current base rate stands at 5.25%, and predictions suggest an increase of either 0.25% or 0.5% by the BoE on 21 September.
Slow August but hope for autumn pick-up: Rightmove
In a relatively quiet month, the latest Rightmove house price index reveals a modest uptick in the average asking price for newly listed properties, reaching £366,281, an increase of 0.4%. Interestingly, it appears that while certain sellers may have set overly optimistic prices, others are heeding their agents’ counsel to establish realistic initial pricing.
Homeowners expect monthly payments to jump by £620: TML
Mortgage holders are anticipating a substantial increase in their monthly payments, averaging nearly £620, in the next two years due to rising interest rates, according to research conducted by The Mortgage Lender. The survey from this specialist lender reveals that 80% of homeowners express “concern” about the impact of increasing rates, with 37% being “extremely concerned” and 43% feeling “somewhat concerned.”
Vida hires Smith as national account manager
Vida, the specialist lender, has appointed Oliver Smith as its National Account Manager. Smith brings with him more than a decade of experience in the financial services sector, having previously served as a Key Account Manager at Positive Lending for ten months.
Three-quarters of landlords shun homes with EPC ratings below C
Foundation Home Loans data reveals that nearly 71% of landlords are hesitant to purchase a property with an energy performance certificate rating below C. This preference indicates a growing trend among buy-to-let property owners who are less inclined to invest in rental properties that do not meet or exceed the anticipated future minimum standard of a C rating.
Accord and TSB announce rate cuts
Both Accord Mortgages and TSB have revealed rate reductions. Accord will implement rate reductions across its residential and buy-to-let offerings starting tomorrow. Meanwhile, TSB has introduced changes to its product transfer and additional borrowing options. In the case of Accord, their two-year products will see reductions of up to 0.51%, three-year products up to 0.45%, and five-year products up to 0.25%.
West One Loans introduces sub-5% five-year fix for landlords
West One Loans is launching a buy-to-let five-year fixed-rate mortgage at 4.8%, calculated based on the pay rate. This enables landlords to secure larger loans with higher LTVs. The mortgage comes with a 9.99% arrangement fee, and West One offers four fee categories ranging from 2.5% to 9.99%, giving borrowers a variety of options.
