New Build Update – July 2024 – Market Update

Market Update

Welcome to the Mortgage Advice Bureau market update

Welcome...

Welcome to July’s Market Update, providing an insightful look into the UK’s mortgage landscape.

With rumours of an interest rate fall this month, some of the rates below may change in the coming weeks. If in doubt, reach out whenever you need.

We also look forward to seeing what this month’s General Election will bring.

Dashboard Overview as of 1/7/24

Base Rate

0 %

Number of 95% Lenders

Number of Own New lenders

Lowest Rate on the Market

0 %

Average New Build Loan Amount

£ 0

Average LTV

0 %

Shared Ownership Summary

Average Share

0 %

Average SO Loan Amount

£ 0

Average LTV

0 %

No of SO Lenders at 95%

Lowest SO Fixed Rate

0 %

How Will the General Election Affect Housing?

As the UK gears up for the general election on July 4th, housing policies from various political parties are under the spotlight.

Here’s a summary of key points from the leading parties

Courtesy of Jack Wilson, Head of New Build

First off, don’t panic! Historically, elections haven’t caused any major tremors in housing prices or mortgage rates.

The real movers and shakers are inflation and the base rate set by the Bank of England.

Certain lenders dropped their rates at the end of June and it’s likely we’ll see others follow in the coming weeks, with at least one base rate cut still expected before the end of the year.

Now, let’s talk political parties and their housing plans:

Labour Party:

Prioritizes building on brownfield sites to protect green spaces.
Aims for up to 50% of new homes to be affordable.
Introduces a ‘Renters’ Charter’ for enhanced tenant rights.
Proposes the ‘Freedom to Buy’ scheme to help young people buy homes.

Conservative Party:

Plans to build 300,000 new homes annually.
Proposed Renters’ Reform Bill to end ‘no-fault’ evictions.
Considering reinstating the Help to Buy scheme.

Liberal Democrats:

Focuses on increasing housing construction, including social housing.
Committed to abolishing leaseholds and banning ‘no-fault’ evictions.

Green Party:

Aims to reduce vacant homes and end the Right to Buy program.
Advocates for eco-friendly development and a “Living Rent.”

SNP

The SNP will push for the UK government to devolve housing benefits to expand the delivery of social housing
Will push for an annual uplift of Local Housing Allowance, while “ensuring rental costs are taken into account”.

Reform UK:

Focuses on brownfield development and prioritizing social housing for locals.
Opposes recent tax changes for landlords and the Renters’ Reform Bill.

Remember, we are here to help should you have any specific questions. Please feel free to contact me or any of the team.

Rates - July 2024

Below we have listed the top five rates available across a range of LTVs. Please let us know if you need any additional information.

95%	90%	85%	80%
5.63% - Halifax 5.83% - Halifax 5.89% - Halifax 5.99% - Bath 6.09% - Halifax	5.23% - Cumbernauld 5.34% - Virgin 5.34% - Clydesdale 5.38% - Barclays 5.43% - Natwest	4.93% - Barclays 5.04% - Nationwide 5.08% - Natwest 5.08% - HSBC 5.09% - Clydesdale	4.93% - Barclays 5.00% - Halifax 5.03% - Natwest 5.04% - Nationwide 5.06% - Clydesdale

75%	70%	65%	60%
4.74% - Barclays 4.75% - Barclays 4.84% - Natwest 4.87% - HSBC 4.88% - Barclays	4.74% - Barclays 4.75% - Barclays 4.84% - Natwest 4.87% - HSBC 4.88% - Barclays	4.74% - Barclays 4.75% - Barclays 4.84% - Natwest 4.87% - HSBC 4.88% - Barclays	4.67% - Barclays 4.68% - Barclays 4.78% - HSBC 4.78% - Halifax 4.78% - Natwest

95%	90%	85%	80%
4.99% - Scottish Building Society 5.33% - Halifax 5.39% - Darlington 5.44% - Halifax 5.49% - Bath	4.75% - Barclays 4.85% - Barclays 4.87% - Virgin 4.88% - Cumberland 4.90% - Barclays	4.57% - Barclays 4.64% - Virgin 4.66% - Natwest 4.67% - Cumberland 4.68% - Nationwide	4.57% - Barclays 4.64% - Virgin 4.64% - Natwest 4.65% - Coventry Building Society 4.66% - HSBC

75%	70%	65%	60%
4.38% - Barclays 4.46% - HSBC 4.49% - HSBC 4.49% - Natwest 4.51% - Coventry Building Society	4.38% - Barclays 4.46% - HSBC 4.49% - HSBC 4.49% - Natwest 4.51% - Coventry Building Society	4.36% - Coventry Building Society 4.38% - Barclays 4.46% - Coventry Building Society 4.46% - HSBC 4.49% - TSB	4.23% - Barclays 4.25% - Barclays 4.28% - Santander 4.31% - HSBC 4.34% - HSBC

Own New

Rate Reducer

Rate Reducer from Own New is designed to make it more cost effective to buy a new build home by helping homebuyers access mortgage rates that are lower than traditional ones. This scheme is open to first-time buyers and those planning to move home. The tables below provides current rates available on this scheme.

Halifax - Own New Exclusive 2-Year Fixed Rates with £999 Product Fee

		60%	75%	80%	85%	90%
RATE		2.76%	3.37%	3.53%	3.74%	4.20%

Halifax – Own New Exclusive 2-Year Fixed Rates with no Product Fee

		60%	75%	80%	85%	90%
RATE		3.02%	3.63%	3.80%	4.00%	4.46%

Virgin – Own New Fixed Rates Reducer Everyday Purchase Range – 5% Incentive with £995 Product Fee

Term		60%	75%	85%	90%
2-Year Fixed		1.09%	1.93%	2.48%	2.78%
5-Year Fixed		3.00%	3.42%	3.67%	3.88%

Virgin – Own New Fixed Rates Reducer Everyday Purchase Range – 3% Incentive with £995 Product Fee

Term		60%	75%	85%	90%
2-Year Fixed		2.67%	3.19%	3.61%	3.86%
5-Year Fixed		3.64%	3.93%	4.12%	4.26%

Furness – Own New Excusive 2-Year Fixed Rates

		80%	90%	95%
RATE		2.25% - £999 Product Fee	2.75% - £999 Product Fee	3.62% - No Product Fee

Products with a £1999 fee

	75%	80%	85%	90%
25-30 Years	4.96%	5.11%	5.15%	5.26%
30-35 years	5.06%	5.21%	5.25%	5.36%
35-40 years	5.12%	5.27%	5.32%	5.43%

Products with no fee

	75%	80%	85%	90%
25-30 Years	5.09%	5.24%	5.28%	5.39%
30-35 years	5.18%	5.33%	5.38%	5.49%
35-40 years	5.24%	5.40%	5.44%	5.55%

News
Articles

Zoopla: House prices to rise 1.5% by end of 2024

UK house prices are on track to be 1.5% higher by the end of 2024 as income growth eases the impact of higher rates, according to Zoopla’s House Price Index.

Link opens a third party website

Lloyds: New Normal will be between 3.5% & 4.5%

Mortgage rates between 3.5% and 4.5% will be the “new normal” even after base rates begin to fall, says the head of the UK’s biggest home loan lender.

Link opens a third party website

Highlights of the Month

Working with Barclays at their recent Key Partner Event.

We were proud to have, CFO, Claire Taddei represent us in a panel discussion on Diversity, Equality & Inclusion.

There was some great knowledge shared. Thanks to everyone who made it a really thought provoking day

Review: Robert Thompson

Found the service to be fast and professional.

They were at the end of the phone any time I had a question and when there was a last minute hiccup with the Halifax they were on it straight away and sorted it out for me.

– J Curley

Shortlisted!

We’re thrilled to be shortlisted as a finalist at the Protection Guru Awards 2024 under the category of Adviser Firm Award – Best Protection Advice from a Mortgage Brokerage.

Our dedicated mortgage advisers embed protection advice into our processes, ensuring every client receives tailored guidance to protect their loved ones and assets.

We look forward to attending the award ceremony in October at the Sheraton Grand Hotel in London. Good luck to all the finalists.

Contact Us

For more information please contact our team

David Balfour

Business Development Manager

Grant McKenna

New Business Team Manager

Jack Wilson

Head of New Build

Small Print

Collated and developed by Maven

The information pertained in here is not intended for public consumption, it has been prepared for the partners and friends of Mortgage Advice Bureau. Please do not share with consumers or buyers. Thank you.

Your home may be repossessed if you do not keep up repayments on your mortgage.

In some instances, there may be a fee for mortgage advice. We will not charge a fee to those purchasing a new build home who contact us via the details provided. Other branches of Mortgage Advice Bureau may charge a fee. The actual amount you pay to them will depend on your circumstances. The fee is up to 1%
but a typical fee is 0.3% of the amount borrowed.

Images courtesy of WayHomeStudio