Mortgage News

In just five months, the number of mortgage deals available to consumers has more than halved, falling from 5,222 on 1 March to just 2,526.

As well as this, data due to be released in the Moneyfacts UK Mortgage Trends Treasury Report shows that in the four weeks between 1 July and 1 August, 202 mortgage deals disappeared from the market. This is despite the housing market picking up after the spring lockdown and being boosted by the Government’s rise of the stamp duty threshold.

“The introduction of the stamp duty holiday and record low average rates following an enforced period of shutdown for the market has seen demand for mortgages escalate in recent weeks,” Eleanor Williams, finance expert at Moneyfacts.co.uk, explained. “However, product choice and availability remains a key issue for mortgage borrowers, with this month continuing the downward trajectory we saw between June and July; there were 2,526 live products as of the 1 August, a fall of 202 compared to last month, and 2,696 less than the number of products on offer at the start of March, meaning there is 48% less choice available to consumers as the industry continues to feel the impact of the Coronavirus pandemic.”

Although the stamp duty threshold increased to £500,000 last month has made it a very attractive time to move home – as our story Is now a good time to move home? highlights – there are several factors homeowners should consider before moving. For those who are in the process of buying a new home, our story on How to fast track your mortgage application post-Covid-19 lockdown offers some tips on ensuring that the mortgage application goes through as quickly as possible.

Overall, mortgage rates have remained highly competitive this week and below we have highlighted the lowest rates available in the charts overall. While getting a low rate is important when considering a mortgage deal, borrowers should keep in mind that the lowest rate might not be the best deal overall and instead they should consider factors such as incentives, product fees and flexible features when choosing a product. Borrowers who need help in deciding which mortgage is right for them should consider speaking to a mortgage broker.

The numbers of people searching for buy-to-let in the UK has seen an increase of more than 2.5 times from the end of March to mid-July, according to Google trends data. As the economic outlook for the Autumn continues to remain bleak and with the expectation of further job losses to come, those saving for retirement may be concerned about another stock market shock and reductions in value to their pensions and investments. Investing in property during difficult economic times is often seen as a safer option with the security of owning a physical asset.
With more people looking at buy-to-let to generate a return on their funds, we explore how investing in property compares to a pension and where to find the best buy-to-let mortgages.

A survey carried out by Nationwide in May found that the lockdown led to 15% of people considering moving home. Whether homeowners are looking for a new home as a result of lockdown or had already planned to move home this year, since lockdown restrictions began to be lifted, the property market has quickly begun moving again. This, coupled with the Government’s stamp duty threshold increase, means that many homeowners will be considering moving home over the coming months.

For those considering moving, we’ve looked at what currently makes it a good time to move home and some factors homeowners should be cautious about.