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This is our take on recent news in the mortgage market. Our views are often cited in several national publications, including; BBC News, The Times, Telegraph, City AM, FT Adviser and Daily Mail, as well as a number of key trade publications, so this should keep you ahead of the curve. If you have any questions on any of these stories, or would like further information, please do not hesitate to get in touch.
At a glance:
Buy-to-let mortgage market continuing to open up…
Despite the pressure Covid has placed on landlords and renters alike, the market is continuing to open up with lenders becoming more confident in the market following the increases in house prices in 2020 across the UK. We have seen BM Solutions and Zephyr reduce their rates of late and West One have introduced some limited-edition products which are highly competitive for their target market, as well as easing criteria to now allow HMO’s over 6 bedrooms and client exposure increasing to £3m.
LTI increases help FTB and second steppers alike
Barclays have recently increased their LTI on residential products to 5.5x income and unlike the recent change to LTI from Platform, this applies to all borrowers, both self-employed and employed and not just professionals. Great news for the self-employed who have been hit hard with restrictions on borrowing due to the Covid pandemic. Until now Barclays had been at 4.49x income as a maximum after pulling high LTIs last summer with no notice for brokers!
Increase in remortgage enquiries show the purchase market is slowing
We have seen an increase in remortgage enquiries as a percentage of our total business, on parity with purchase business in January for the first time since the first Lockdown in March and April 2020. This highlights that the purchase market is slowing but also that people are choosing to stay put in greater numbers at present. With the end of the SDLT holiday approaching, it appears that buyers could be holding off to see what happens in this regard, but there are other factors to consider, especially lockdown and the very cold weather… more outdoor space, a major driving force for people to move in 2020 feels far less of an imperative when it is below zero.