This week’s headlines: Nationally, Virgin and NatWest cut rates to 0.36% and Lloyds Banking Group launches £5k FTB deposit.
Check out these and other industry updates below:
Nationwide, Virgin and NatWest are making rate cuts of up to 0.36%
Nationwide has announced a rate cut for mortgages of up to 0.36%, with the biggest cuts aimed at first-time buyers and senior mortgages, bringing the lowest rate down to 4.35%.
Virgin and NatWest have also introduced lower rates, suggesting that competition between lenders is increasing and despite continued uncertainty about funding costs and wider market conditions.
Lloyds Banking Group is introducing a £5k FTB deposit
Lloyds Banking Group is launching a new first-time buyer mortgage requiring just a £5,000 deposit for homes up to £300,000, available through Lloyds, Halifax and Bank of Scotland.
The move reflects growing efforts by major lenders to help consumers struggling to save regular deposits, although high interest rates and regional house price restrictions may limit some borrowers.
The new prime minister could mean lower mortgage rates, says John Charcol
Mortgage expert Nicholas Mendes says the political uncertainty surrounding Prime Minister Keir Starmer could affect mortgage prices, with markets looking closely at the possibility of a change in leadership and its impact on monetary policy.
While a more market-friendly successor could help lower borrowing costs, concerns about higher government borrowing and inflation risks related to global tensions may continue to keep pressure on gold yields and borrowing costs.
The lease ‘bottleneck’ sees the exchange period take 155 days
Rental property sales are taking the longest to complete, with the average time from offer to exchange rising to 155 days in April, according to Connells.
The growing delay, which is much longer than free housing, increases the risk of falling sales and adds pressure for urgent lease changes.
Dormitory, rental and shared housing are all mentioned in the King’s Speech
King Charles III used the King’s Speech to outline the government’s plans to reform tenancy, rent-to-own, increase investment in public housing and speed up the removal of unsafe clothing from residential buildings.
The proposals are part of a broader focus on housing security, infrastructure and long-term economic stability, although detailed policies are yet to be announced.
FTBs remain under mortgage pressure: Moneyfacts
Moneyfacts data shows that although mortgage market volatility eased in April, first-time buyers are still under pressure due to reduced product choice and expanded affordability.
Although rates have fallen slightly from recent highs, they remain above early March levels and senior mortgage options have dwindled, limiting options for consumers with small deposits and keeping borrowing costs high.
Housing market eased in April: Rics
The RICS survey shows that the housing market remained weak in April, with consumer demand and agreed sales falling as global uncertainty and inflation concerns continued to dampen sentiment.
While rental demand remains stronger than supply, to keep up with upward pressure on rents, buyers and sellers are acting cautiously, particularly in the south of England where affordability pressures are particularly severe.
Zephyr Homeloans is introducing a special 5-year fixed term loan
Zephyr Homeloans, part of Pepper Advantage, has launched new five-year buy-to-let products with no valuation or application fees, aimed at both home owners and limited companies.
The lender has also expanded its approach to complex lending structures, as it continues to support homeowner and corporate lending programs.
TMW drops rates up to 0.20%, Gen H raises rates
Mortgage Works is cutting select mortgage rates as low as 0.20% and introducing new short-term fixed and tracker products aimed at giving homeowners more flexibility in a changing market.
At the same time, Gen H is raising rates following rising exchange rates, highlighting continued volatility and mixed rate movements across the credit sector.
40% of homeowners want to refinance in the next 12 months
About four in ten homeowners are expected to refinance within the next year, according to Pegasus Insight, with large landlords driving the bulk of the activity as they control many of the lending programs.
Research suggests that, despite regulatory and economic pressures, the private sector remains active and relatively stable, supported by steady employer demand and long-term employment.
