Catch up on Mortgage Strategy’s most popular stories this week. London landlords see rental incomes soar 32.9% and Metro seals £600bn package, holds talks over £3bn mortgage sale. Read more below:
London landlords see rental incomes soar 32.9%
Landlords with a property portfolio in London have witnessed a remarkable 32.9% surge in their average annual rental income over the last year. In contrast, landlords in England and Wales (outside of London) have experienced an 8.7% increase in their rental portfolio income in the same period according to new research from Benham and Reeves.
Rogers leaves post as Barclays intermediary business director
After 13 years with the bank, Dave Rogers, the Barclays intermediary business director, has departed from the company. In a LinkedIn post, Rogers mentioned, “the time has come, and I am now looking forward to new challenges and opportunities.”
Metro seals £600m package, holds talks over £3bn mortgage sale
Metro Bank has successfully arranged a deal to refinance £600 million of debt and has also confirmed ongoing discussions regarding the potential sale of £3 billion from its mortgage book. This move comes in conjunction with the bank’s procurement of £325 million in new funding, consisting of £150 million in fresh equity and £175 million in regulatory equity and debt issuance, as stated in an announcement made on Sunday.
Santander chief customer officer for homes Pearce leaves bank
Tracie Pearce, the Chief Customer Officer for Homes at Santander, has departed from the bank. Pearce, who was tasked with overseeing customer support in all facets of home finance, left the institution last month. She assumed this newly-established role in January 2021 and was also at the helm of the strategic development, digital transformation, and innovation efforts in the mortgage business.
Skipton adds low-rate mortgages for struggling borrowers
Skipton Building Society has introduced a low-rate mortgage range specifically tailored for existing borrowers experiencing payment challenges. The society has curated a selection of products that offer current owner-occupied borrowers, nearing the conclusion of their current deal and facing potential strain with existing rates, the chance to ease their payments by securing a lower interest rate for a two-year period.
Weekly rate watch: Prices fall
Moneyfacts data indicates a decrease in average fixed mortgage rates, as lenders persist in reducing rates to entice new customers. Specifically, the average rate for two-year and five-year fixed mortgages decreased by 8 basis points, landing at 6.48% and 5.98% respectively. Meanwhile, the average rate for a three-year fixed mortgage inched down by a single basis point to 6.24%, and the average rate for a 10-year fix remained steady at 5.75%.
Buyers already benefiting from affordable mortgage rates
According to Octane Capital, current homebuyers are benefiting from increased mortgage affordability. In September, average monthly repayments were £64 lower compared to July. This analysis considers a five-year fixed-rate mortgage with a 25% deposit on the average house price of £289,824 (as of July 2023).
Fixed rate cuts across the board and greater product choice
According to data from the Moneyfacts UK Mortgage Trends Treasury Report, mortgage rates have dropped across the board, accompanied by an expansion in product options. The report highlights a continuous decline in average fixed mortgage rates for two- and five-year deals across all LTV tiers for the second consecutive month.
Nationwide makes cuts of 0.45% to fixed rate deals
Starting October 11, Nationwide Building Society is implementing rate reductions of up to 0.45% on the majority of its fixed-rate mortgage products. These competitive rates cater to a wide range of borrowers, including first-time buyers and those looking to switch to a new deal.
BTL fixed rates drop and product choice rises
According to the latest analysis from Moneyfactscompare.co.uk, the buy-to-let sector has witnessed a monthly increase in product availability alongside a decrease in fixed rates. Overall, there has been an improvement of just over 100 deals, bringing the total options available to over 2,500. This marks a significant increase from less than 1,000 options available a year ago.
The post Mortgage Strategy’s Top 10 Stories: 09 Oct to 13 Oct appeared first on Mortgage Strategy.
