Catch up on Mortgage Strategy’s most popular stories this week. Chancellor commits 32 lenders to launch Mortgage Charter and top broker concerns as Consumer Duty deadline looms. Read more below:
Chancellor commits 32 lenders to launch Mortgage Charter
Chancellor Jeremy Hunt has emphasised that the newly signed Mortgage Charter by lenders will provide reassurance to approximately 1.4 million homeowners who may encounter challenges with the upcoming remortgage deals this year. This initiative follows Hunt’s invitation to various lenders to Number 11 Downing Street last Friday, aiming to extend assistance to homeowners amidst the backdrop of increasing interest rates.
Top broker concerns as Consumer Duty deadline looms
The TMA Club has shared insights into the most frequently asked questions received by its broker support desk from Directly Authorised (DA) brokers in preparation for the impending Consumer Duty deadline in July. The inquiries primarily revolve around understanding the extent of Consumer Duty, deciphering the terminology employed by the FCA, and identifying the key aspects that firms should prioritise.
Mortgage crisis hitting divorcing couples hard
Navigating the property conundrum during separation has become more challenging due to the sudden increase in interest rates, making home loans considerably more expensive. Ben Glassman, a financial planner at Evelyn Partners, highlights that traditionally, a cost-effective approach has involved one spouse remaining in the family home. This not only minimizes disruption, particularly when children are involved, but also helps avoid various legal, mortgage, and property transaction fees.
Rate rises spark fears of forever mortgages: HL
Data from Hargreaves Lansdown reveals that over one in six individuals anticipate being aged 65 or older by the time they fully repay their mortgage. According to a poll conducted by the finance broker, 17% of adults expect to surpass the traditional retirement age before settling their home loans, with an additional 9% anticipating repayment to occur after the age of 70.
Santander pulls deals, hikes resi loans by up to 46bps
Santander for intermediaries has announced its plan to withdraw certain residential fixed-rate deals at 10 pm today (26 June). Additionally, the bank’s broker-only division will increase interest rates on other home and landlord loans for new customers by up to 46 basis points starting tomorrow. All two- and five-year fixed-rate offers with a 60% loan-to-value for residential properties will be removed late this evening. It is important to note that full mortgage applications must be submitted prior to this deadline.
Average 2-year fixed resi rate hits 7-month high: Moneyfacts
According to data from Moneyfacts, the average two-year fixed residential mortgage rate increased by 4 basis points to 6.23% today (Monday 26), reaching a seven-month high. Similarly, the average five-year fixed residential mortgage rate also climbed by 3 basis points to 5.86% since the previous week’s end.
Virgin increases rates on fixed-rate deals
Virgin Money has announced modifications to several mortgage products. Effective from 8 pm this evening, new rates will be implemented for their core offerings. Specifically, the two-year fixed rates will experience a 0.15% increase, commencing at 5.81%. The three-year fixed rates will see a 0.10% increase, beginning at 5.66%. Additionally, the five-year fixed rates will undergo a 0.05% increase, starting at 5.15%.
Barclays Mortgage Insider: The future of mortgage broking
The latest episode of the Barclays Mortgage Insider Podcast predicts the future of the homebuying journey and the role of mortgage brokers. Hosted by Phil Spencer, property expert, and featuring Maria Harris and John Reynolds, the discussion explores AI, data quality, open banking, and creating a seamless property transaction. Brokers are urged to demand more from tech providers and embrace digital transformation.
Inflation numbers nudge fixed-rate mortgages higher
According to Rightmove’s weekly mortgage tracker, the average rate for a five-year fixed 85% loan-to-value (LTV) mortgage stands at 5.5% today (27 June). This represents an increase from 5.31% last week and a significant rise from 3.35% a year ago. Similarly, for a five-year fixed 60% LTV mortgage, the rate has climbed to 5.26% from 5.05%, showcasing a notable increase compared to 3.18% recorded a year ago.
Dashly’s message to brokers as EPC cost nears £14k
Dashly, a data expert, is urging brokers and lenders to enhance awareness of green mortgages. This call to action comes in response to Dashly’s recent data, revealing that the average expense for UK homeowners to enhance their Energy Performance Certificate (EPC) ratings amounts to £13,981.87. With the government’s mandate that all homes achieve at least EPC band C by 2035, Dashly highlights the need for increased efforts in promoting green mortgages to facilitate the transition to more energy-efficient housing.
The post Mortgage Strategy’s Top 10 Stories: 26 June to 30 June appeared first on Mortgage Strategy.
