Catch up on Mortgage Strategy’s most popular stories this week. Halifax introduces 3-year remortgage offers and Quarter of landlords plan to sell over the year: survey finds. Read more below:
Halifax introduces 3-year remortgage offers
Starting on October 20th, Halifax Intermediaries is set to offer three-year fixed-rate remortgage products. This decision aligns with the growing demand among borrowers seeking more cost-effective options, given that approximately 800,000 fixed-rate deals are nearing their end in the second half of this year, as reported by the banking trade body UK Finance. Additionally, around 1.6 million deals are expected to mature in 2024.
Barclays makes further rate cuts across product range
Following a further review of its mortgage range, Barclays has confirmed it will further reduce rates by as much as 20 basis points on a selection of products.
Quarter of landlords plan to sell over the year: survey finds
In light of challenging market conditions, a significant number of landlords are considering reducing their property portfolios. The Simply Business Landlord Report, based on a survey of 1,455 UK landlords, indicates that despite high demand for rental properties, a noteworthy 25% of landlords intend to sell an investment property within the next 12 months.
Tenet exit sad day for industry: Network Consulting
The most prominent topic in network discussions during the last quarter, as highlighted by Paul Day, founder of Network Consulting, was the sale of Tenet Network and its affiliated brands within the Tenet Group. Over recent years, Tenet has faced negative media coverage concerning the rollout of a new back-office system, financial losses, and a significant decrease in the number of AR (Appointed Representative) firms it supports. Given this extensive coverage, it may have led many to believe that a sale or even a worse fate was an inevitable outcome.
The Mortgage Works loosens criteria for portfolio landlords
The Mortgage Works has eased its affordability assessments for portfolio landlords. Nationwide’s buy-to-let division has increased the maximum aggregate loan-to-value (LTV) for portfolio landlords with over 10 buy-to-let properties, raising it from 65% to 75%. Furthermore, the firm is reducing the stress rate applied across the portfolio from 5.25% to 5%.
Equity release customers, lump sums and drawdowns fall: ERC
Data from the Equity Release Council reveals a significant increase in lifetime mortgage repayments, exceeding £21 billion per quarter since the end of the last year. This surge is attributed to borrowers responding to elevated interest rates. The report indicates that both regular and one-off capital repayments in the mortgage market have risen from £17 billion prior to the pandemic, as highlighted in the Council’s latest Autumn Market Report.
LSL’s Round to take non-exec roles at Primis and TMA
Jon Round, the Financial Services Director at LSL Group, is set to resign from his position in February. He will transition into a non-executive director role at the group’s intermediary companies, Primis and TMA, where he will establish and preside over a new broker council. Simultaneously, Richard Howells will join the company in November, initially assuming the role of Financial Services Chief Operating Officer.
Habito posts first monthly profit
Habito, the digital mortgage broker, achieved its inaugural monthly profit in September by effectively managing expenses and increasing its revenues. Earlier this year, the company reported average monthly losses of £385,000 over the first five months, which marked a significant improvement compared to the previous year when monthly losses averaged £897,000. The exact amount of profit earned last month remains undisclosed.
Asking prices rise by 0.5% in October, lowest since 2008
In October, average new seller asking prices saw a modest 0.5% increase, the lowest for this time of year since 2008. According to the Rightmove House Price Index, the asking prices reached £368,231, which is notably below the typical October increase of 1.4%. Despite this slight uptick, buyer activity levels continue to lag significantly behind the post-pandemic market frenzy.
Industry draws few positives from inflation update
In September, inflation held steady at 6.7% for the second consecutive month. Notably, food inflation declined on a monthly basis for the first time in two years. However, the unexpected persistence of inflation has been attributed to the rising fuel prices. These latest statistics have been met with disappointment in the industry.
