Financial Update - 24th May 2021

Financial Update

Inflation more than doubled in April, according to the latest figures from the Office for National Statistics. The jump to 1.5% in April from 0.7% in March means consumer prices are rising at their fastest rate since the start of the pandemic. Its too early to estimate the impact of increasing inflation on interest rates. However it would be prudent to watch and plan accordingly. 

UK average house prices increased by 10.2% over the year to March 2021, up from 9.2% in February 2021; this is the highest annual growth rate the UK has seen since August 2007.The latest figures from the Office for National Statistics (ONS) show that average house prices increased over the year in England to £275,000 (10.2%), in Wales to £185,000 (11.0%), in Scotland to £167,000 (10.6%) and in Northern Ireland to £149,000 (6.0%). London continues to be the region with the lowest annual growth (3.7%) for the fourth consecutive month.

A mortgage and property finance collective has today, Monday 24th May 2021, announced the launch of The Blood Bank, an industry initiative aimed at raising awareness of the importance of donating blood.

Residential Update

  • Santander, on Tuesday 25 May is making changes to selected fixed and tracker rates up to 90% LTV. Selected rates will increase between 0.05% and 0.20% and selected rates will be reduced between 0.03% and 0.15%, with some fees also being reduced. 
  • BARCLAYS is to Launch L&G exclusives from Wednesday – 2yr 75% Remortgage at 1.2%, and 2Yr 85% Purchase at 2.3%. Other rates are available
  • The Nottingham has lowered its 95% LTV five-year fixed product – which comes with no admin, booking or valuation fees – to 3.90% (from 4.10%).
  • Accord Mortgages has announced it is extending its higher loan-to-value mortgage range to include new build options up to 90% LTV from Friday 21 May. For borrowers buying a new build with a maximum loan size of £500,000, the new range includes a two-year fixed rate at 3.70% and a five-year fixed-rate at 3.76%.
  • Virgin Money has announced rate reductions to some of its Residential mortgage products. These range from 2- to 5-year fixes have been reduced by up to 0.14%, with the 5-year 75% product now at 1.54%

Buy-2-Let Update

  • Specialist buy-to-let lender Zephyr Home loans has cut rates on its 75% LTV five-year fixed-rate loans and introduced a 2% product fee option across its entire range. 75% LTV five-year fixed rates now start at 3.39% for a standard property buy-to-let mortgage and 3.69% for HMOs and multi-unit blocks.
  • Vida, the specialist mortgage lender, has today announced the addition of a limited edition remortgage-only 5-year fixed rate at 3.29% on its Vida 1 Buy to Let (BTL) range, up to a maximum LTV of 75%.

Commercial Update

  • YBS Commercial Mortgages has announced the launch of its latest product for landlords – a new HMO product with a rate of 3.9%, fixed for five years, on an interest-only basis, with a maximum loan-to-value of 75%.
  • Cynergy Bank has announced that it has been accredited for the Recovery Loan Scheme, and it will now begin offering it to customer
  • Catalyst Property Finance has announced it is launching a low-rate, high leverage bridging product for loans between £750,000 and £3,000,000. Monthly rates are 0.65% to 70% OMV or 0.69% to 75% OMV. As with Catalyst’s standard bridging range, proc fees are set at 2.00%, and there is a 2.00% facility fee, no exit fee and no ERCs.
  • Virgin Money has announced rate reductions to some of its buy-to-let mortgage products. The changes include reduced rates on its buy-to-let cashback products – with the 75% LTV purchase product with £1000 cashback reduced by 0.07% to 1.84% and the BTL portfolio cashback purchase product being reduced by the same amount to 1.94%.

Insurance Update

  • Royal London has removed restrictions to its underwriting philosophy put in place last year due to COVID-19. The mutual insurer will continue to ease restrictions with the aim of returning to a pre-pandemic underwriting philosophy.

Subscribe Now to get 25% off our Broker Fees