More Rate Reductions

The property market continues to break records. Nationwide’s house price index showed house prices in the UK rose 10.9 per cent annually in May to a new record average price of £242,832. This was the highest yearly growth in seven years. Over the past 12 months, house prices have risen by £23,930. 

Compared to April, this was a monthly increase of 1.8 per cent down from the 2.3 per cent growth seen that month which marked the biggest rise since 2004. 

Robert Gardner, Nationwide’s chief economist, said the extension of the stamp duty holiday had impacted the timing of purchase activity but research conducted by the mutual found it was not the key driver. Its survey of 3,000 people at the end of April discovered 68 per cent of those who were either moving home or considering a move would have done so even if the stamp duty holiday had not been extended. This buoyancy is driving a new price war amongst lenders who are continually bringing out lower-rate products. Nationwide is cutting its lowest two-year fixed rate to 0.99% as well as reducing a number of other deals by up to 20 basis points. The building society’s new 0.99% product has come down by 5 basis points from 1.04% and is for remortgage only.

According to a survey by Paragon, investing via a limited company is now the investment method of choice by far, with 47% of investors intending to purchase via a limited company. We are seeing rate cuts across a number of buy to let and limited company buy to let products.

If you would like to take advantage of these rate cuts, please call our senior mortgage broker Danny O’Keeffe on 0208 364 3444 or use the request a call back tab below to arrange a time to discuss your options.

Paragon Bank has announced that it is re-entering the holiday lets and short-term finance markets. They’re offering 4 products for purchasing or remortgaging single self-contained properties being let on an approved holiday occupancy agreement, including Air BnB. Available to investors in their personal names or through their limited company. For further information call 0208 364 3444.

Propertymark’s latest Housing Market Report shows that one in three properties (32 per cent) sold for more than the original asking price which is the highest figure on record, massively beating the previous one of 19 per cent in May 2014. For further information call 0208 364 3444.