Mortgage and Insurance Blog

Date - 29th June 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 or two in the interest rate world with Stafford, Nottingham, Ipswich, Newcastle State Bank of India, Nat West, The Mortgage Lender, Foundation HL, Leeds, Saffron, West One, West Bromwich, Norton and Furness all announcing changes.

In criteria news, Accord, Metro Bank, and Newcastle Building Society are just some of the lenders fleshing out their 95 per cent loan-to-value mortgage ranges amid a market revival of the low deposit product. As of June 23, there were 231 products with a 95 per cent loan-to-value on the market, according to Moneyfacts data.

HSBC announce changes to income multiples at various income and loan to value levels.

Virgin, TSB and Halifax announce changes to their visa / settled status rules.

The Tipton will now consider mortgage applications for new build houses up to 90% LTV, new build flats (including one bed) up to 85% LTV and second time owner flats up to 95% LTV.

At the same time, the Tipton has reduced its minimum loan for 95% LTV products to £100,000, down from £150,000.

In wider news, two reports on the housing market with the latest Nationwide house price index showing annual house price growth accelerated to 13.4% in June, the highest outturn since November 2004.

While the strength is partly due to base effects, with June last year unusually weak due to the first lockdown, the market continues to show significant momentum. June saw the third consecutive month-on-month rise (0.7%) after taking account of seasonal effects, and prices are now almost 5% higher than in March.

And from Zoopla we read that UK house prices have increased by an average of £10,246 per property over the past 12 months - the largest rise in value recorded since October 2016 – and that has an impact on the Stamp duty take.  

The Intense market activity over the last 12 months has accelerated house price growth, pushing 1.8m UK properties into a higher stamp duty bracket. These figures emerge at the same time as stamp duty relief starts to taper, marking a double stamp duty win for the Treasury.

Of all UK homes, 940,000 additional properties will now attract some level of stamp duty at 5% should they sell, and an extra 130,000 will command some level of stamp duty at 10%.

The average additional stamp duty payable on homes that have moved up into the 10% stamp duty band will be around £6,100 after the end of the tapered stamp duty holiday in September, while the additional cost for the average home that has moved up into the 5% band will be around £725.

Buyer demand is down 28% from its pandemic-peak, moderated by tomorrow’s stamp duty deadline. However, demand is still acute and remains 55% higher than the average recorded in the more ‘normal’ market of 2019.  The supply of property listed for sale continues to fail to keep up with demand, with total listings down by 24% year on year. However, despite the lack of homes for sale, the UK remains on course to register 1.5m sales in 2021.

 

In Insurance news, Canada Life research finds 18-34 year olds are the most likely to purchase, or consider purchasing, life insurance since the start of the pandemic.

According to research from the insurer, 5.8 million UK adults have taken out, or considered taking out, a life insurance policy since the start of the Covid-19 pandemic.

Nearly one-fifth (19%) of those aged 18-34 stated they are considering or taking out life insurance policies, the largest percentage of any age group.

The research found that despite the pandemic triggering more people to think about their own mortality, there are still 32.9 million (63%) people who have never thought about or do not have an active life insurance policy in place.

Canada Life also found that men have been more likely to take action on securing life protection since the onset of the pandemic than women, as 14% of men have thought about or taken out life insurance policies, compared to just 8% of women. 

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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