Catch up on Mortgage Strategy’s most popular stories this week. Santander UK cites rising inflation and interest rates for house prices falling and Cover feature: Work in progress – WFH or back in the office? Read more below:
Santander UK expects house prices to fall 10% in 2023
Santander UK cites rising inflation and interest rates as the main reasons for this prediction. Inflation is currently at a 40-year high of 10.1%, and interest rates have risen to 4.25%. These factors are putting pressure on household budgets and making it more difficult for people to afford to buy homes. Santander UK says that the slowdown in the housing market is already being felt, with the number of mortgage approvals falling by 10% in the first quarter of 2023.
Cover feature: Work in progress – WFH or back in the office?
The COVID-19 pandemic forced many businesses to adopt remote working arrangements, and many employees have found that they prefer working from home. However, some businesses are now looking to bring their employees back into the office. This article explores the pros and cons of both remote working and working in the office, and considers what the future of work might hold.
Smoove confirms takeover offer from Australian rival
Smoove and PEXA, two homemoving platforms, are in early takeover talks. The deal, if successful, would create a major player in the global market. Smoove is a UK-based company with a strong presence in the UK, while PEXA is the leading homemoving platform in Australia. The combined company would have a customer base of over 1 million people and a market value of over £1 billion. The deal is still in the early stages, but it has the potential to reshape the homemoving market.
House prices lift 1.7%, FTB properties hit record cost: Rightmove
House prices in the UK rose by 1.7% in the year to April, according to Rightmove. The average price of a home is now £366,247, with first-time buyers facing record prices. The rise in prices was driven by strong demand from buyers, who are competing for a limited supply of homes. The market is expected to remain competitive in the coming months, as the cost of living crisis puts pressure on household budgets.
Weekly rate watch: Fixes slide
The average rate for a two-year fixed mortgage fell by 7 basis points to 5.25% this week, according to Moneyfacts. The average rate for a three-year fix edged lower by 1 basis point to 5.05%, and the average rate for a five-year fix fell by 8 basis points to 4.97%.
Comment: Never write off buy-to-let
Buy-to-let is a mature, resilient investment product that has proved its worth over many years states Richard Rowntree, managing director of mortgages at Paragon Bank. While there have been some challenges in recent years, the sector is still growing and providing good returns for investors. Landlords who manage their properties well and have realistic expectations of returns can still make a good profit from buy-to-let.
Aldermore appoints Morrey as new product owner
Aldermore has appointed Nick Morrey as its new product owner for intermediary services. Morrey joins the lender from Coreco, where he was technical director. He has over 20 years of experience in the financial services industry, and has held senior roles at a number of other lenders, including Lloyds Bank and Barclays.
Labour slams Govt for abandoning first-time buyers
Labour has accused the government of abandoning first-time buyers. The party says that the government’s housing policies are failing to address the growing problem of housing affordability. Labour has pledged to build more homes, reform planning, and introduce a comprehensive mortgage guarantee scheme if it is elected to government.
Repossessions largely static with ‘drastic’ regional fluctuations: HBB
The number of homes being repossessed in England and Wales remained largely static during 2022, but with some significant regional fluctuations. House Buyer Bureau (HBB) research found that 3,219 homes were repossessed between December 2021 and December 2022, which represents a slight increase of 0.4% compared to the previous 12-month period. However, there were some regions where repossessions were up significantly, such as Wales (+14%), the East Midlands (+8%) and the West Midlands (+6%). On the other hand, repossessions fell across London (-18%), the South East (-12%), the South West (-3.9%) and the North West (-0.7%).
Bank of Ireland UK appoints Longhorn as head of sales
Bank of Ireland UK has appointed Alan Longhorn as its interim head of sales, distribution and marketing. Longhorn takes over from Graham Felstead, who will step back from his role but will remain with the lender on a short-term consultancy basis to ensure a smooth handover. Longhorn has over 15 years of experience in the mortgage industry, the last five of which have seen him leading Bank of Ireland UK’s sales team and working with intermediaries. He previously worked at ING Direct and Lloyds Banking Group.
