This month’s latest property and mortgage news…

In this week’s newsletter we have put together a snapshot of this month’s latest property and mortgage news.

Mortgage lending is set to fall in 2024
According to a forecast by a lenders’ trade body “UK Finance” mortgage lending is set to fall in 2024, with repossessions and the number of households in arrears to increase.

UK Finance said forecast that mortgage arrears – those behind by over 2.5% of their outstanding balance – would rise from 105,600 cases by the end of this year, to 128,000 in 2024. The trade body said repossessions, while remaining “incredibly low” by historic comparisons, would go up from 4,400 this year to around 5,100 next year.

It is the first time that homeowners have seen the value of their property rise at least three months in a row since the summer of last year.

Lenders relax affordability criteria
This week Santander introduced a number of reductions to their Residential and Buy to Let affordability rates. This means most of our clients could borrow more.

Virgin Money has also lifted the maximum term for all residential mortgages to 40 years.

Several lenders have lifted the maximum age they will lend to at the end of term, or the length of their loans, in recent months, as higher mortgage rates put households under pressure amid rising living costs.

Longer terms can create lower monthly payments, but can also lead to higher amounts paid back by the borrower.

Find out how much you can borrow
Whether you’re contemplating purchasing a new home, diving into the buy-to-let arena, considering switching products, or exploring remortgaging options, we’ve got your back.

With the mortgage landscape experiencing greater volatility, our award-winning mortgage brokers are poised to assist you every step of the way.

Reach out to us today at 0208 364 3444 or click here to schedule a free consultation call

Rents jump 10% to top £85bn in 2023
Rents are set to jump 10.3% to £85.6bn this year, data from Hamptons shows, marking the biggest annual rise on record.

The £8bn lift in the collective accommodation costs paid by tenants over the last year, mean that renters will pay more than double the £40.3bn their bills came to in 2010, says the property agent.

Tenant costs have jumped as housing supply is constrained, while landlords have upped rents to cope with higher interest rates that have lifted from 0.1% in December 2021 to currently stand at 5.25%.

In London, tenants paid a record £32.1bn in rent this year, up 11.8% — to £2,425 per calendar month — on a year ago.

Borrowers to experience ‘severe mortgage rate shock’
The Bank of England has forecast that 900,000 borrowers will experience ‘severe mortgage rate shock’ in 2024 when their existing fixed rate deals come to an end.

These households will see their monthly mortgage payments rise by more than £500. Of these borrowers, 20% will see monthly payments rise by more than £1,000.

The findings, in the Bank’s latest Financial Stability Report, show that, for the typical residential mortgage holder coming off a fixed rate deal between the second quarter of 2023 and the end of 2026, their monthly mortgage repayments are set to rise by around £240, or 39%.

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