Financial Update - 17th May 2021
New records continue to be set as the average price of property coming to market this month jumps by 1.8% to £333,564. This beats the previous all-time high recorded a month ago, the latest Rightmove house price index shows. While London prices have stood still (+0.2%) since the first lockdown, areas further north have seen double-digit increases. Wales leads the way at 13.0%, followed by North West (11.1%), and Yorkshire & the Humber (10.5%).
Business sentiment is starting to look more positive, at 110 points out of a possible 200. This is up from a low of just 79 points in Q2 2020, and means SMEs are back to the same pre-pandemic sentiment levels last seen in February 2020. 85% of SMEs plan to invest in their businesses over the next 12 months, mainly by recruiting staff, investing in new equipment or technology, and upping marketing efforts. After a tough year for many jobseekers, a reassuring 47% of SMEs also expect to increase their staff over the next year.
- Nationwide relaunches 95% LTV products outside Mortgage Guarantee Scheme, Two-year fixed rates start from 3.49% & Five-year fixes start from 3.79% with a £1,499 fee
- The Mansfield returns to 95% LTV residential lending
- Virgin launches 10 and 15-year fixed rate 95% LTV products; A five-year fixed rate starts at 3.99%, a 10-year fixed rate is available at 4.19%, and a 15-year fix is on offer at 4.39%, all with no product fee
- Metro Bank ups income multiple to 5.5 for professionals
- Coventry for intermediaries has improved its income multiples from 4 to 4.49 times for loans with an LTV greater than 90%.
- Vida has added limited edition two and five-year fixed rates to its Vida 1 buy-to-let range up to a maximum LTV of 75% priced at 3.24% fixed for two years and 3.49% fixed for five years
- Fleet Mortgages has cut rates on its 75% LTV pay rate products on its five-year fixed-rates with both the standard and limited company products down by 10 basis points, from 3.59% to 3.49%, while the HMO/MUB product has been cut by 20 basis points from 3.99% to 3.79%.
- LendInvest has announced a series of changes to its bridging suite, including rate reductions and the introduction of higher LTVs for land and commercial products.
- Atom has today started to offer quotes on its secured lending products under the Recovery Loan Scheme (RLS), from £250,000 up to £5m, subject to eligibility criteria, via its network of 200+ independent brokers across the UK.