Mortgage and Insurance Blog

Date - 11th December 2019

Written by Richard Johnson

 

Hello again readers

I hope you are all keeping well.

In the interest rate world, Skipton, Coventry, TSB, Virgin, Barclays, Precise, Clydesdale, Bank of Ireland, HSBC, Platform and West Bromwich all announcing recent changes. Leeds Building Society has offered the first Retirement Interest Only (RIO) mortgage with cashback and no product fee.

In criteria news, Accord announce several changes to BTL lending including changing their minimum income requirement to £25,000 per application. Previously, one applicant had to earn at least £25,000. Also, they have reduced self-employed income evidence from 3 years to 2. (Where the net profits have declined over the 2 year’s they may ask for previous years evidence before making a decision.) Finally, they have introduced a 125% ICR for landlords whose total income is less than £45k and who are basic rate or 0% tax payers.  

In wider news, Lloyds Banking Group is the lender behind the spike in mortgage repossessions pointed to by the Ministry of Justice in its last two quarterly updates. Over the periods April to June and July to September, the Ministry of Justice reported mortgage repossessions had risen by 39 per cent and 42 per cent respectively compared to the same quarters in the previous year. In both quarterly updates, the government department said the rise “has been driven by increases seen by one large mortgage provider”.

 

The Help to Buy ISA, which launched on 1 December 2015, closed on 30th November, and has seen more property completions than the Help to Buy Equity Loan scheme. In three and a half years, up to 30 June 2019, Help to Buy ISA has seen 256,564 property completions by first-time buyers, according to HM Treasury.

This is more than the Help to Buy Equity Loan, which has supported 236,313 house purchases in six years. The number of bonuses paid by the government through Help to Buy ISA was 339,747 with an average bonus value of £943. Areas with the most property completions using the scheme have been the North West and Yorkshire and The Humber, with the lowest number in the North East and Northern Ireland.

 

In insurance news, Aviva announce a change to help support the purchase of waiver of premium and provide further value for policyholders, by reducing the cost of our waiver benefit by an average of 60%. This change applies to all quotes with effect from 9th December 2019.

I hope you found this post of interest and feel free to get in touch with me if you need any help with your mortgage or insurance needs,

 

All the very best

 

Richard Johnson

Cert CII (MP), CeCM, AdvCemap, CeRGI

Mortgage and Insurance Consultant.

Mobile Phone ; 07881802962

Office : 0208 245 8464 direct dial

Email : richard@rjmortgagefinance.co.uk

 

Compliance Wording

Your home may be repossessed if you do not keep up repayments on your mortgage

If you wish us to act for you - There will be a fee for the advice given, the exact amount will depend on your circumstances, but we estimate it will be £395 or 1%.

 

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