Mortgage Strategy Updates for This Week
Stay ahead of the curve with this week’s crucial mortgage updates. Lib Dems unveil housing policy in election manifesto and YBS Commercial hires Angela Norman as head of lending. Read more below:
Lib Dems unveil housing policy in election manifesto
The Liberal Democrat Party’s 2024 manifesto, “For a Fair Deal,” proposes expanding neighbourhood planning, building ten new garden cities, and reforming land buying laws. It aims to improve local planning, promote rural housing, incentivize brownfield development, and enforce “use-it-or-lose-it” planning permissions. The manifesto introduces a Rent to Own model for social housing, emphasizes green infrastructure, and sets clear standards for social housing and tenant governance. Propertymark CEO Nathan Emerson supports its focus on social housing and capping ground rents.
YBS Commercial hires Angela Norman as head of lending
YBS Commercial Mortgages has appointed Angela Norman as head of lending. With 25 years of experience, including roles at Recognise Bank and Royal Bank of Scotland, she will lead regional lending teams from the Yorkshire Building Society head office in Leeds, while traveling nationwide. Norman is excited to join during the company’s growth phase, aiming to foster a high-performing, customer-focused culture. YBS Commercial managing director Tom Simpson praised her strategic and customer-facing expertise, anticipating her crucial role in the company’s expansion.
Santander cuts selected rates and adds BTL tracker products
Santander UK has reduced rates on selected fixed mortgages across its purchase, remortgage, buy-to-let, and new build ranges, effective June 11. Notable reductions include the 60% LTV five-year fix for residential purchase at 4.28% (down from 4.38%) and the 90% LTV five-year fix for residential purchase at 5.10% (down from 5.20%). Additionally, new two-year tracker products for large loans up to 75% LTV have been introduced, including a 60% LTV two-year tracker at 6.04% with a £1,999 fee for loans up to £5m.
Paragon Bank simplifies BTL product range
Paragon Bank has simplified its buy-to-let mortgage offerings by removing the distinction between portfolio and non-portfolio landlords, allowing brokers to identify suitable mortgages for clients more easily. The lender reduced its product guides from nine to three categories: BTL, switch, and further advance mortgages. Paragon also updated its website to make information more accessible for brokers. Commercial director Louisa Sedgewick highlighted that this simplification, driven by broker feedback, aims to streamline processes and improve business interactions.
Conservative Party to keep FTB stamp duty threshold at £425,000: Reports
The Conservative Party will pledge in its manifesto to permanently maintain the stamp duty threshold at £425,000 for first-time buyers, continuing the current nil-rate introduced during Liz Truss’ tenure. This decision aims to support first-time buyers, particularly in London and southern England, where many seek homes between £250,000 and £425,000. The move follows data showing significant savings for first-time buyers in recent years under the current relief scheme.
Owning a home ‘harder’ under Conservatives: Sunak
Prime Minister Rishi Sunak acknowledged in a BBC Panorama interview that homeownership has become tougher under the Conservative government’s long tenure. He pledged to ease this by building homes sensitively in suitable areas if his party wins the upcoming election. Sunak highlighted saving for a deposit as a major hurdle for young homebuyers. The Conservative Party is set to promise in its manifesto to maintain the £425,000 stamp duty threshold for first-time buyers.
Landlords and prime London buyers most to lose from election: Savills
Savills predicts landlords and prime London homebuyers may face challenges post-election. Uncertainty surrounds buy-to-let investors over tenant rights reforms postponed from the previous parliament, potentially revisited by Labour. Changes to non-dom taxation could affect central London buyers under Chancellor Jeremy Hunt’s phased-out plan by 2025, with Labour proposing further adjustments. The property market is also watching Bank of England rate cuts closely, amid stable UK house prices reported by Halifax in May.
Labour will make mortgage guarantee scheme permanent
Labour is launching a freedom to buy scheme to help young people onto the property ladder with 5% deposit mortgages, backed by government guarantees if they win the upcoming election. The initiative extends the temporary Conservative mortgage guarantee scheme and aims to assist over 80,000 buyers in the next five years, addressing barriers to homeownership under long-standing Conservative governance.
Mortgage shelf-life drops and lenders up rates: Moneyfacts
The Moneyfacts report shows mortgage approval times have shortened to 15 days from 28 days. Two- and five-year fixed mortgage rates rose by just 0.02% last month, with averages at 5.93% and 5.50% respectively. The Standard Variable Rate (SVR) held steady at 8.18%, and the average two-year tracker mortgage fell to 5.94%. Despite small rate increases, overall mortgage options are plentiful, the highest since February 2008, benefiting borrowers with smaller deposits.
Labour’s private school tax plans fuel house prices near state schools: Hamptons
Labour’s plan to VAT private school fees has boosted house prices near top-rated state schools, intensifying competition. Hamptons notes 26% of homes near ‘outstanding’ schools faced bidding wars, compared to 17% near ‘inadequate’ ones. Properties near top-rated schools saw smaller price drops in 2023, while those near lower-rated schools fell more. The proposal may shift families towards state education, increasing demand for homes near top-tier state schools and affecting smaller private schools negatively.
