Market Update

Welcome to the Mortgage Advice Bureau Market Update

Welcome...

Welcome to our new look Market Update.

This will drop into your inbox at the beginning of each month, providing an interesting look into the UK’s mortgage landscape.  

This month we look back on an amazing conference and celebrate our 2024 award winners. We also reflect on the latest Bank of England financial stability report. 

If you have any questions, or would like to see anything specific in future editions, please let us know.

Scroll on…

Dashboard Overview as of 4/12/24

Base Rate
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Number of 95% Lenders
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Number of Own New lenders
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Lowest Rate on the Market (Nationwide)
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Average Loan Amount
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Average LTV (purchases)
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Conference & Awards celebrate a great 2024:

A huge thank you to everyone that was able to make it along to our recent conference, held at the wonderful Edinburgh Caledonian.

Sponsored by Vitality and Scottish Building Society, we covered a range of topics, with a summary below:

 

The Modern Customer

Dylan Kelly from consultancy, Maven, discussed the changing landscape of customer experience. He emphasised that it’s the experience, not just the product, that should differentiate customer journeys.

Preparing for New Search

His presentation highlighted the evolving world of search, noting:

  • The rise of people preferring ChatGPT results over Google’s
  • AI-powered search extensions are becoming more prevalent
  • A shift towards more personalised and conversational search results

 

Data Enrichment & AI

He also stressed the importance of:

  • Using AI for targeted marketing and segmentation
  • Enhancing risk assessment through AI tools
  • Implementing private language models for data analysis and product development
  • The importance of digital PR and employee-generated content

 

MAB’s Tools to support Introducers and New Build Developers

We were treated to a demo of MAB’s new digital tools, aimed at supporting developers and Estate Agencies educate and nurture their client base. Examples include mortgage monitoring, varying calculators and content generation. Should anyone wish to know more, please drop us a line.

 

Protection Clinic

Gary Cuthbertson from Vitality discussed overcoming “optimism bias” in insurance sales. Key points included:

  • People often underestimate their need for insurance
  • Vitality’s approach uses behaviour change programs to engage customers
  • The concept of “Vitality Age” helps people understand their health status objectively

New Build Panel

A panel featuring Fionna Kell (Homes for Scotland), Hazel Davies (Cruden Homes), and Jack Wilson (MAB) addressed current challenges in the new build industry.

The experienced panel discussed the need for more homes across the country, challenges around an evolving energy landscape and the outlook for 2025, which is positive.

A massive thank you to Fionna and Hazel for joining us for a very insightful discussion.

 

Client Care Panel

Our own, Claire Taddei, Elaine Kellington, and Ross Stisi participated in a panel focused on customer service strategies.

One of the key messages to emanate was the value of trusted one-on-one advice. Content creation was also a key talking point – with educational content critical to the customer experience.

 

Economic Update

In one of the event’s highlights, TSB’s Chief Economist. David Fenton provided a fascinating economic overview, highlighting:

  • Interest rates are gradually decreasing
  • Inflation is down but still a concern
  • The UK budget statement indicated a loosening of fiscal policy
  • Mortgage affordability is improving but remains stretched

 

Get Back Up

Our Special Guest, Jamie McAnsh, wowed the crowd with stories of mental fortitude.

Sadly, Jamie woke up paralysed overnight in 2014. 

After spiralling down a slippery slope he decided that if life had dealt him these cards, he was going to play poker. He became an adventurer and found disability sport and have since climbed a mountain on his hands amongst many other challenges.

Jamie became the countries first Charles Holland award winner in the category ‘Against All Odds’ for his achievement in 2015 and this started a career of inspirational speaking where Jamie’s message is to always ‘Get Back Up’

In 2022 he became the first person with Complex Regional Pain Syndrome to reach Everest Base Camp on crutches.

It has not always been a story of awards and adventure; Jamie suffered severe anxiety and depression after, in his eyes, becoming a burden on society and those around him.

Jamie’s story was relatable and inspirational to all ages but always with the same message to always Get Back Up.

Rates - December 2024

Below we have listed the lowest rates available across a range of LTVs.

Please note these are for illustration purposes only – not all clients may qualify for these. If you need any additional detail, please let us know,

95% 90% 85% 80%
5.45% - Danske Bank
5.25% - Leeds BS
4.90% - Santander
4.86% - Nationwide
75% 70% 65% 60%
4.57% - Barclays
4.57% - Barclays
4.57% - Barclays
4.45% - Barclays
95% 90% 85% 80%
5.19% - Natwest
4.57% - Halifax
4.57% - Halifax
4.57% - Halifax
75% 70% 65% 60%
4.34% - Nationwide
4.34% - Nationwide
4.34% - Nationwide
4.24% - Nationwide

Festive Opening Hours

Bank of England's Financial Stability Report. A Summary:

The Bank of England’s latest report highlights significant changes in the mortgage landscape:

Key Points
• Nearly 4.4 million households face higher mortgage rates by 2027.
• 2.7 million homeowners will experience rates over 3% for the first time.
• Average monthly repayments set to increase by £146 for those refinancing in the next two years.

Silver Linings
• 23% of mortgage holders will see no change in rates.
• 27% may benefit from lower rates.
• Mortgage arrears remain historically low.

Despite these challenges, UK lenders are well-positioned to support households through potential economic uncertainties.

News
Articles

Mortgage lending & household savings grow

UK Finance have released their latest Household Finance Review for Q3 2024, which explores trends in household spending, saving, and borrowing.

Link opens a third party website

BoE governor expects 4 rate cuts next year

As inflation fades, there may be four cuts in 2024. If correct, that would see base rate fall from 4.75 per cent, where it is now, to 3.75 per cent by the end of 2025.

Link opens a third party website

Highlights of the Month

2024 Award Winners

A huge congratulations to our 2024 award winners, who picked up their accolades at our recent conference in Edinburgh. 

It’s been a fantastic year, and brilliant to see some new faces among the winners!

Roll on next year!

5* Review:
Steve WIlson

I had a fantastic experience with Mortgage Advice Bureau.

I love their efficiency and proactive service. Steve was awesome, guiding us all along the process. As a first time buyer, we had a lot to learn. He was patient with us and we got the best deal at that time.

– Chigozie A

Own New - New Lender

Own New and Kensington Mortgages will now offer lower rates for specialist borrowers

This partnership specifically caters to those with non-standard income, such as self-employed workers with a 12 month income history, contract workers, and individuals with minor credit blips that are over 36 months old.

If you have any questions, please drop one of us a line. 

Welcome Neil!

Introducing Neil, our new Mortgage Processing Expert!
 
Neil joins us all the way from Iceland and, as a trained barber, this role is a bit of a change of scenery for him. 
 
Neil joins our experienced operations team and will play a key role in the mortgage applications process.
 
In his spare time, Neil loves hiking and snowboarding—so it looks like Scotland has plenty in store for him!
 

Contact Us

For more information please contact our team

Jaimie Robertson

Team Manager

Small Print

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 ProStooleh