Here is a summary of some key changes in the mortgage market this week.
- Research from Halifax is showing that mortgages are at their most affordable level for ten years. Q4 2017 data showed that mortgage payments equated to 29% of a homeowner’s disposable income. This is in comparison to 48% in 2007. Regionally the ratio is higher, with Londoners spending 45% of disposable income on mortgage payments, whereas in Northern Ireland it’s only 19%. This is reflected in the “skewed” pricing of property and therefore the varying levels of borrowing across the regions.
- Virgin Money have made changes to both residential and buy to let rates. They have announced new rates for clients with a 10% deposit on two- and three-year fixed rates (1.89% & 2.18% respectively). For buy to let mortgages, Virgin’s rates are now starting at 1.39% and also come with cashback of £750. As a lender that can look at surplus net income (top slicing), this makes a very competitive product.
- Accord Mortgages, who have been active since the start of the year, have announced further rates reductions across the majority of the range. In total, 21 products have had reductions by up to 0.23%. At the top end, a 5% deposit 2-year fixed is now 3.99% with no fees. With lots of lenders looking at the higher LTV ranges, this could help further the first time buyer-second time mover.
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