April Mortgage News - Mortgage Squared

Mortgage Mistakes Cost Homeowners £120 a Month

Mortgage experts are warning homeowners they could potentially be missing out on £120 per month by not remortgaging as they are scared of having a credit score that will affect the decision. Almost a 3rd of homeowners  daren’t remortgage due to this reason and over 30% more are put off due to fees.  People could save up to £120 a month just by remortgaging.

Metro Bank Launches 95% Mortgage

Metro Bank is the latest lender to offer a 95% mortgage to it’s product portfolio. The 5 year fixed deal scheme has an interest rate of 3.89%.  The maximum loan is up to £570,000.

Surge in 95% Mortgages Into The Market

This week has seen a surge in 95% mortgages entering the market with schemes from Halifax, Santander, Natwest, HSBC and Barclays all being released.  These are all using the Government’s new guarantee scheme.

House Prices Increases In February

House prices jumped by 8.6% annually in February. Detached and terraced houses saw an increase of 9.1%. Semi-detached properties increased by 8.9%.  Flats and maisonettes saw prices rise by 6.7%.

New Government Mortgage Scheme Boost For Homebuyers

The Government backed mortgage scheme of 95% loan to value mortgage guarantee means the Government takes on some of the risks involved if borrowers default on repayments. Halifax, Natwest, HSBC and Santander have all taken on the new Government Scheme.

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The early reports suggest there has been a huge uptake of the new 95% mortgage from home buyers with applications increasing significantly in the past week.

Is There A Mortgage Price War Starting?

Mortgage lender Hinckley and Rugby are launching a 2 year discount variable mortgage at just 0.99%. The first sub 1% mortgage deal to be launched in a year.  More lenders are expected to introduce less then 1% mortgage deals in the coming months.

Loyalty Costing Some £1,000 a Year

Approximately three million loyal mortgage customers risk being overcharged up to £1,000 a year by staying with their mortgage lender. Those who’s fixed term mortgage has ended have not switched  to a new deal so they have gone onto the lenders standard variable interest rate. Reasons include it’s too time consuming or too complicated.

Equity Release Trap Update

Thousands of homeowners are trapped in toxic equity release plans they used to free up equity from their home.  The Equity giant Age Partnership is looking into if some of these can be switched to their own better deal to save consumers thousands in repayments and fees.

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Properties with South Facing Gardens In Demand

The pandemic has increased the demand in properties with south facing gardens. Surveys have shown that 71% of buyers are more likely to buy a home with a south facing garden.  The pandemic has heightened the awareness of needing relaxing outdoor space at home, especially during the lockdown and this has pushed prices up of property with south facing gardens.

Property Values Grown Each Month

Property values have increased almost 2k per month since March 2020.  The signs are it’s slowing down now but remain stable.  Your home is now worth almost 2k a month more then it was in March 2020. The market is expected to slow down once the Government schemes like the Stamp Duty holiday have ended.

Pandemic Property Boom

Mortgages for new home purchases are 38% above 10 year average in February. A total of 87,700 mortgages were approved for new houses in February, this is compared to an average of 63,500 over the past 10 years. The peak was in November when 103,700 mortgages were approved, no doubt helped by the Stamp Duty Holiday scheme.

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Property Demand Up

The demand for property has surged by 24% in March, fuelled by the extended Government Stamp Duty Holiday scheme. Properties are now selling 3 weeks faster then flats as people look for more space incase of any more future lockdowns.  The demand for space is now one of the major factors in a hew home search.

New Builds Excluded From Government Backed Scheme

Five of the biggest lenders have all said they won’t offer the new Government backed 95% mortgages to people looking to buy new builds. Lloyds, Barclays, Santander, HSBC and Natwest have all come out and said they won’t offer 95% loan to value mortgages on any new build property.

Best Mortgage Rates For April

Some of the latest new mortgage rates are proving very competitive. Santander are offering 1.05% fixed fee for 2 years with a product fee of £1,249. Coventry Building Society have a mortgage product with a fixed fee of 1.39% over 3 years with a product fee of £999. Lastly the Nationwide Building Society offers a rate of 1.19% that is fixed for 5 years with a product fee of £1,499.

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