Mortgage and Insurance Blog

Date - 12th May 2021

Written by Richard Johnson

 

Hello again readers,

I hope you are all keeping safe and well and If you need any assistance with your mortgage finance or insurance needs, please feel free to email / call me and I will be happy to help.

It has been a busy week in the interest rate world with Ipswich, Leeds, Accord, Bank of Ireland, Furness, Darlington, Halifax, Nottingham, Melton Mowbray, HSBC, West Bromwich and Foundation all announcing changes.

 

 

 

 

In criteria news, Kent Reliance made several changes including to the length of their new build offers and maximum loan to value ratio on a new build flat.

Clydesdale make changes to the rules on property in high rise buildings.

Platform announce a change to minimum lease outstanding for purchases of flats and maisonettes.

Zephyr announce a change to the minimum income requirement for buy to let borrowers.

Ipswich make a change to the maximum age of a borrower at the expiry of a mortgage.

 

 

In wider news, just 19 per cent of first-time buyers were able to get a mortgage on their first attempt in the last year, research from Aldermore suggests. This is compared to the 48 per cent who were successful the first time round before the pandemic. 

The survey of 1,000 prospective homeowners found 43 per cent of first-time buyers were rejected for a mortgage more than once. This was up from the 17 per cent who said this was the case in March last year. The proportion of new potential buyers who were rejected once stayed stable, with 38 per cent citing so in March this year compared to 36 per cent last year. 

 

 

A release from Hometrack shows that tenant demand for city centre living has begun to return as lockdown restrictions lift and monthly rents in some parts of the UK have fallen.  Since Easter, renter demand has increased 26 per cent in central Edinburgh, 12 per cent in the centre of Leeds, 7 per cent up in inner London and 5 per cent in Manchester city centre, according to Zoopla.

Despite the improvement in tenant demand, rents still remain slightly lower than a year ago. Rents in Leeds are 0.7 per cent down, 1.1 per cent lower in Manchester and 3.2 per cent down in Edinburgh.

 

 

The number of 95% LTV products on the market has rocketed from 34 in April this year to 112 as of the start of this month, Moneyfacts data shows. Product numbers in all LTV categories from 60% LTV to the top end have increased across the same time period except at 80% LTV, the data adds.

This means that the total number of mortgage products on the market in May stands at 3,927, up from 3,842 in April.

 

 

 

 

In Insurance new, more claims statistics, this time from Scottish Widows where Scottish Widows paid out on 99.5% of life claims and 94.2% of critical illness claims during 2020, representing 9,227 and 1,485 claims respectively. 

With £206m paid out throughout the year, Scottish Widows notes that this is largely in line with its claims pay-out total in 2019, when the insurer paid out on 99.4% of life claims and 93% of critical illness claims. 

In 2020, Scottish Widows paid 650 Covid-19 related claims, totalling just over £7m. The total paid out on life claims was £125m, with £8.6m paid out on terminal illness claims. Cancer was again the most common reason for claims, with 44.5% of all claims from women were as a result of death from cancer, compared with 32% of men.

Heart-related claims accounted for 25% of cases for men, compared to 14% of cases for women.

The average life claim paid was £46,401 and the highest individual claim was over £565,045.

 

 

 

As the last few blogs have shown, insurance companies do make payments for most claims – it is simply vital that the right cover is chosen, and all heath details are disclosed. If you need some cover or want to review the cover you have in place, please feel free to get in touch.

 

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

 

 

 

 

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It has been a busy week in the interest rate world with Ipswich, Leeds, Accord, Bank of Ireland, Furness, Darlington, Halifax, Nottingham, Melton Mowbray, HSBC, West Bromwich and Foundation all announcing changes.

 

In criteria news, Kent Reliance made several changes including to the length of their new build offers and maximum loan to value ratio on a new build flat.

Clydesdale make changes to the rules on property in high rise buildings.

Platform announce a change to minimum lease outstanding for purchases of flats and maisonettes.

Zephyr announce a change to the minimum income requirement for buy to let borrowers.

Ipswich make a change to the maximum age of a borrower at the expiry of a mortgage.

 

 

In wider news, just 19 per cent of first-time buyers were able to get a mortgage on their first attempt in the last year, research from Aldermore suggests. This is compared to the 48 per cent who were successful the first time round before the pandemic. 

The survey of 1,000 prospective homeowners found 43 per cent of first-time buyers were rejected for a mortgage more than once. This was up from the 17 per cent who said this was the case in March last year. The proportion of new potential buyers who were rejected once stayed stable, with 38 per cent citing so in March this year compared to 36 per cent last year. 

 

A release from Hometrack shows that tenant demand for city centre living has begun to return as lockdown restrictions lift and monthly rents in some parts of the UK have fallen.  Since Easter, renter demand has increased 26 per cent in central Edinburgh, 12 per cent in the centre of Leeds, 7 per cent up in inner London and 5 per cent in Manchester city centre, according to Zoopla.

Despite the improvement in tenant demand, rents still remain slightly lower than a year ago. Rents in Leeds are 0.7 per cent down, 1.1 per cent lower in Manchester and 3.2 per cent down in Edinburgh.

 

The number of 95% LTV products on the market has rocketed from 34 in April this year to 112 as of the start of this month, Moneyfacts data shows. Product numbers in all LTV categories from 60% LTV to the top end have increased across the same time period except at 80% LTV, the data adds.

This means that the total number of mortgage products on the market in May stands at 3,927, up from 3,842 in April.

 

 

In Insurance new, more claims statistics, this time from Scottish Widows where Scottish Widows paid out on 99.5% of life claims and 94.2% of critical illness claims during 2020, representing 9,227 and 1,485 claims respectively. 

With £206m paid out throughout the year, Scottish Widows notes that this is largely in line with its claims pay-out total in 2019, when the insurer paid out on 99.4% of life claims and 93% of critical illness claims.

 

In 2020, Scottish Widows paid 650 Covid-19 related claims, totalling just over £7m. The total paid out on life claims was £125m, with £8.6m paid out on terminal illness claims. Cancer was again the most common reason for claims, with 44.5% of all claims from women were as a result of death from cancer, compared with 32% of men.

Heart-related claims accounted for 25% of cases for men, compared to 14% of cases for women.

The average life claim paid was £46,401 and the highest individual claim was over £565,045.

 

As the last few blogs have shown, insurance companies do make payments for most claims – it is simply vital that the right cover is chosen, and all heath details are disclosed. If you need some cover or want to review the cover you have in place, please feel free to get in touch.