Catch up on Mortgage Strategy’s most popular stories this week. Ying Tan named CEO of Habito and the UK has experienced the largest decline in annual house prices since 2009. Read more below:
Biggest fall in annual house prices since 2009 – Nationwide
According to the latest report from Nationwide, the UK has experienced the largest decline in annual house prices since 2009. In May, the average price of houses sold was 3.4% lower compared to the previous year. This drop is significant as it is the most substantial decrease since July 2009, when the average price fell by 6.2% following the financial crisis.
Ying Tan named CEO of Habito as Dan Hegarty exits
Ying Tan, the former chief executive of mortgage broker Dynamo, is set to assume the role of chief executive at digital broker Habito. However, this appointment is contingent upon FCA approval. Additionally, Tan will acquire a notable stake in the company as part of the deal. Habito recently concluded its latest funding round, which was spearheaded by Tan and received support from its current investors: Augmentum Fintech, SBI Investment, Volution, and Bootstrap Europe.
Resi and BTL ranges fall, rates rise: Moneyfactscompare.co.uk
Over the past week, lenders have withdrawn nearly 400 home loans and approximately 300 buy-to-let deals, accompanied by rising interest rates. This response from firms stems from the anticipation of potential Bank of England base rate increases. Notably, Halifax, Newcastle Building Society, Kensington, and MPowered Mortgages, among several others, have recently pulled specific fixed mortgage products in the residential sector. These findings are based on data provided by Moneyfactscompare.co.uk.
Property transactions fall sharply – HMRC
According to the HMRC, recent data indicates a significant decline in housing transactions. In April 2023, the provisional non-seasonally adjusted estimate reveals that there were 67,220 residential transactions in the UK. This represents a 32% decrease compared to April 2022 and a 29% decrease compared to March 2023.
Expect more rate changes from lenders – Rightmove
Following Wednesday’s inflation data, which showed a lower-than-anticipated decrease to 8.7% in the year leading up to April (down from 10.1% in March), mortgage lenders have reacted by adjusting rates across various products. This response stems from the prevailing belief that interest rates are expected to rise rather than decline, contrary to certain expectations.
Fixed-rate deals being withdrawn – Moneyfacts
Moneyfacts’ recent data provides an overview of average mortgage rates in the past week. In the case of residential two-year fixed rates, encompassing all loan-to-value (LTV) ratios, the average rate has risen marginally from 5.34% to 5.35%.
Cambridge Building Society hires Nutkins as head of lending
Carly Nutkins has been appointed as the new head of lending at the Cambridge Building Society. Nutkins brings valuable experience from her previous role as the commercial mortgage operations manager at Allica Bank, a small business lender.
Nationwide launches 0% green additional loan product
Nationwide Building Society has recently reduced the interest rate on its green additional borrowing product to zero percent. Starting from 1 June, this loan offering enables approximately 5,000 households with a Nationwide mortgage to borrow between £5,000 and £15,000. The loan-to-value ratio can reach up to 90%, and borrowers have the flexibility to choose between two- or five-year terms.
Stamp duty transactions tumble by almost a third: HMRC
According to data from the HMRC, total stamp duty transactions experienced a significant decline of 29% in the first quarter of the year compared to the previous quarter. This drop represents the lowest level since the implementation of pandemic-related social distancing rules in March 2020. It is noteworthy that this decline follows increases in the two preceding quarters and is 13% lower than the corresponding period from a year ago.
Keychain launches ‘paperless’ hub for brokers, solicitors and clients
Keychain, a start-up, is launching a digital hub designed to enhance the mortgage process’s efficiency for brokers, solicitors, and their clients. The platform offers various services, such as fact finding, document sharing, and e-signing of client care documents. Its primary goal is to streamline and expedite the mortgage process.
