Financial Update 8th June 2021

FInancial Update

The government has launched its First Homes scheme, which will help local first-time buyers onto the property ladder by offering homes at a discount of at least 30% compared to the market price. The scheme will support local people who struggle to afford market prices in their area, but want to stay in the communities where they live and work. The seven initial lenders supporting the Scheme are building societies: Chorley, Darlington, Leeds, Mansfield, Newcastle and Nationwide joined by Halifax.

The latest Moneyfacts data reveals a spike in mortgage product choice as providers cater to borrower demand. At 4,243, product choice is at the highest level recorded since the onset of the pandemic, after rising for the eighth consecutive month. The tier to see the largest uplift was 95% LTV, where there has been a rise of 80 products.

Second charge mortgage new business volumes grew by 176% in April 2021, according to the latest figures from the Finance & Leasing Association. The growth in second charge mortgage lending has increased with more customers seeing the benefits of fast, flexible access to the equity in their property. A big driver of this demand, of course, has been the explosion of home improvements across the country as multiple lockdowns have inspired people to enhance their surroundings.

The average house price in the UK reached yet another record in May at £261,743, according to the latest Halifax house price index. This comes as annual house price inflation reaches its strongest level in nearly seven years, with prices having grown 9.5% annually.

  • Foundation’s 75% LTV five-year fix has reduced by 10 basis points to 3.24% and comes with a 2% fee
  • Virgin Money has relaunched its 95% LTV shared ownership deals alongside a new 95% LTV two-year fixed rate at 3.79% with no fees
  • LendInvest has announced a range of key changes to its buy-to-let suite, including the launch of new pay rate products and a repricing of its standard and small HMO ranges.
  • Together Money – Unregulated bridging loans for commercial property have seen rates lowered to 0.85% at 60% LTV and to 0.90% at 70% LTV, while maximum LTVs have been increased from 65% to 70% for purchases and from 50% to 65% for refinancing
  • Masthaven Bank has announced a number of new changes to its bridging range, including the launch of its lowest ever bridging rate, the introduction of re-bridging on its core bridging product, and a move towards more flexible lending criteria. Rates on the bank’s core bridging product now start at 0.43%
  • Hope Capital has revamped a number of its bridging finance products. Rates on commercial deals have been reduced and are now available from 0.82% per month, down from a previous starting rate of 0.90%.
  • Roma Finance has launched Roma75, a new bridging product with an LTV of up to 75% and a rate of 0.75%.

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