In a suprising shift, the number of mortgage deals available in both the residential and buy-to-let sectors has dropped as lenders withdraw products from the market.
This development, as revealed by Moneyfacts, affects product choice and impacts the average mortgage rates.
Over the past few days, numerous providers, including Bank of Ireland UK, Halifax, and Aldermore among others, have pulled selected fixed mortgage products from the residential sector.
Some, like Aldermore and Tipton & Coseley Building Society, have withdrawn their entire fixed-rate range. Consequently, the total number of available mortgages has decreased from 5,385 to 5,012 in just a week.
Landlords disappointed by rates
The buy-to-let market is experiencing similar changes with lenders like Precise Mortgages, Kensington, and Marsden Building Society pulling selected fixed mortgage products recently. Additionally during the last week both Fleet and Paragon Mortgages have temporarily withdrawn their entire fixed rate offering.
Landlords will be disappointed to see a drop in product choice and that average fixed rates are on the rise.
The total number of buy-to-let mortgages has fallen from 2,748 to 2,343 in a week. Average rates on 2 and 5 year fixed buy-to-let mortgages have risen to 5.61% and 5.52% respectively since the beginning of May 2023.
Volatility likely due to uncertainty
We believe the recent volatility shown by lenders is down to concerns surrounding future interest rate hikes. Lenders are actively reassessing their product offerings and “waiting to see” what the Bank of England is likely to do next.
How can we help?
Our “FlexiLock” service was created to support our clients in times of volatility.
Opting for the service means we’ll search the market for the most suitable product for you and continue to monitor this right up until the product goes live. If we find a lower cost or more fitting product for your circumstances, we will switch the product over. This is done with no extra charge to you.
In most cases we can source and secure a mortgage product 6 months before your current mortgage product expires.
It is important to note that lenders are currently giving very little notice before withdrawing products, we are seeing sometimes just a few hours notice. Therefore if you are wanting to lock in a particular rate then it would be best to move fast!
If you have recently been provided with an illustration by our team, it is imperative that you contact us to secure the product.
Speak to our award winning brokers today on 0208 364 3444 or follow this link to book an appointment: https://mortgagesandinsurers.co.uk/get-a-quote/
Study Reveals a Quarter of adults unclear on mortgage readiness
A new study from The Mortgage Lender (TML) reveals that 25% of UK adults have no clear understanding of when they would be ready to apply for a mortgage, even if they had the necessary deposit.
The research looked at what consumers perceive as their readiness for mortgage application. Leading the criteria, 27% of respondents indicated that having a steady and secure income made them ready.
Closely following was full-time employment, cited by 26% of those surveyed. A further 23% believed that saving enough for a deposit signalled their readiness for a mortgage application.
Other factors considered important for mortgage readiness included having a satisfactory credit score (18%), being debt-free (17%), and having a partner with a sufficient income (14%). Interestingly, only 11% identified consulting with a mortgage broker as an indicator of readiness.
Sales agreed reach their highest point this year – Zoopla
Despite weaker demand than a year ago, sales agreed have reached their highest point this year and are up 11% on the five-year average. This is according to Zoopla’s latest House Price Index.
Average house prices fell 1.3% over the last six months but the speed of the fall has been slowing as buyer confidence improves and more sales are agreed.
Demand and sales agreed are running above the five-year average in Scotland, the North East and London, which have been the best-performing regions over the last four weeks.
Despite more sales, sellers need to remain realistic with asking prices to attract sufficient buyer interest. 18% of homes currently listed for sale on Zoopla have had the asking price cut by more than 5%, down from 28% in February.