24 May 2017 | Admin | 0 Comments
Here is our regular summary of the key changes and announcements in the mortgage market for this week.
- Mortgage Trust have announced some new BTL rates and in view of recent increased demand for longer term fixed rates they have looked at their 5 year range. MT have announced a 3.45% 5 year fixed rate, which although not the most competitive rate, does have a very accommodating rental calculation of 4% @ 125%. With lending in London being hit badly by the recent BTL rules changes, this new rate from MT is a step in the right direction.
- Mortgage lending in March increased 26% against the previous month but showed a 19% drop year on year. One area that did show improvement, on both monthly and yearly data, was an increase of first time buyers. The £4.9bn lent was an increase of 27% from February 2017 and 9% from March 2016.
- UK house prices rose 4.1% in March 2017 compared to the previous year. With the average UK house price now £215,848, this is a smaller increase to February’s data, where year on year rises stood at 5.6%. With rising price inflation and stagnant wage growth, there is a concern within mortgage lending of affordability issues with the current lending parameters.
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