Welcome to June’s Market Update, which provides an insightful look into the UK’s mortgage landscape.
Alongside up-to-date rates, you will also read the latest market news.
This month we also celebrate an award for our Co-owner, Claire Taddei, and we hear about Generative AI courtesy of a guest blog.
If there is anything specific you would like to see in these updates, please let us know.
This month, we consider the way Generative AI may impact the new build industry.
Piece courtesy of Maven founder, Dylan Kelly….
“We work hard to improve customer journeys and believe data enrichment is an intergal part of customer service, so when we started working with a Generative AI client in the States, it got me thinking…how will GenAI impact the new build housing market….here’s a few thoughts……
What is Generative AI?
Gen AI is a type of artificial intelligence that can create new content, such as text, images, videos, and even designs, based on the data it has been trained on. Think of it as a highly advanced version of a program that can generate original and creative outputs. For example, it can write a poem, create a piece of artwork, or design a building layout, all by itself.
How Does Generative AI Work?
Gen AI uses complex algorithms and models, often referred to as deep learning models, to understand patterns and relationships in large datasets. These models are trained on vast amounts of data, which allows them to generate new content that is similar to the data they were trained on. For instance, if a GenAI model is trained on thousands of architectural designs, it can create new building designs that are innovative and functional.
Impact on the New Build Housing Market
Gen AI is poised to have a significant impact on the new build market in several key areas:
One of the most exciting applications of GenAI in the housing market is the ability to create personalised designs. By analysing a buyer’s preferences and requirements, GenAI can generate custom home designs that perfectly match their needs. This means that potential homeowners can get a house that is tailored to their lifestyle, without the need for extensive manual design work. Example: VU.CITY’s SiteSolve tool uses generative design to explore numerous design options for a specific site, helping developers and architects create optimised and personalised building layouts.
GenAI can create highly realistic virtual tours of new build homes, even before they are constructed. These virtual tours allow potential buyers to explore properties in detail from the comfort of their own homes. This not only saves time but also provides a more immersive and engaging experience.
Generative AI can streamline the design and construction process by quickly generating multiple design options and optimising them based on various criteria, such as cost, sustainability, and aesthetics. This can significantly reduce the time and cost associated with traditional design methods. For example: Clarion Housing has invested in generative design technology to speed up site feasibility studies and reduce costly last-minute design changes.
GenAI can analyse market trends, property data, and economic indicators to provide valuable insights into future market conditions. This helps housing professionals make informed decisions about pricing, investment opportunities, and marketing strategies. Example: Outra, a UK-based company, uses predictive analytics to help real estate professionals with accurate property valuations and market forecasts.
Creating engaging and informative content for property listings, social media, and marketing materials can be time-consuming. GenAI can automate this process by generating high-quality content that highlights the key features of a property, saving time and ensuring consistency.
Conclusion
As this technology continues to evolve, it will bring about greater efficiency, creativity, and customer satisfaction in the housing market, making it an exciting time for both developers and buyers. By understanding and leveraging the power of GenAI, the new build housing market can stay ahead of the curve and meet the ever-changing demands of modern homebuyers.
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% |
|---|---|---|---|
|
5.39% - Scottish Building Society
5.63% - Halifax
5.83% - Halifax
5.89% - Halifax
5.99% - Bath
|
5.19% - Clydesdale
5.23% - Cumbernauld
5.29% - Virgin
5.31% - Leeds
5.39% - Virgin
|
4.99% - Barclays
5.04% - TSB
5.04% - Nationwide
5.08% - HSBC
5.09% - Clydesdale
|
4.99% - Barclays
4.99% - TSB
4.99% - Leeds
5.00% - Halifax
5.04% - Nationwide
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.74% - Leeds
4.79% - Leeds
4.88% - HSBC
4.88% - Santander
4.89% - Barclays
|
4.74% - Leeds
4.79% - Leeds
4.88% - HSBC
4.88% - Santander
4.89% - Barclays
|
4.74% - Leeds
4.79% - Leeds
4.88% - HSBC
4.88% - Santander
4.89% - Barclays
|
4.74% - Leeds
4.78% - Halifax
4.79% - HSBC
4.79% - Leeds
4.80% - Santander
|
| 95% | 90% | 85% | 80% |
|---|---|---|---|
|
4.99% - Scottish Building Society
5.33% - Halifax
5.39% - Darlington
5.44% - Halifax
5.49% - Bath
|
4.80% - Barclays
4.84% - Virgin
4.87% - Virgin
4.88% - Cumbernauld
4.90% - Barclays
|
4.66% - HSBC
4.67% - Cumbernauld
4.68% - Natwest
4.68% - Nationwide
4.69% - TSB
|
4.64% - TSB
4.66% - HSBC
4.67% - Cumbernauld
4.68% - NatWest
4.68% - Nationwide
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.44% - Barclays
4.51% - HSBC
4.54% - TSB
4.54% - HSBC
4.55% - Nationwide
|
4.44% - Barclays
4.51% - HSBC
4.54% - TSB
4.54% - HSBC
4.55% - Nationwide
|
4.44% - Barclays
4.51% - Leeds
4.53% - HSBC
4.53% - Coventry
4.54% - TSB
|
4.33% - Barclays
4.34% - Barclays
4.37% - HSBC
4.38% - Santander
4.39% - TSB
|
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.
| 60% | 75% | 80% | 85% | 90% | ||
|---|---|---|---|---|---|---|
|
RATE
|
2.76%
|
3.37%
|
3.53%
|
3.74%
|
4.15%
|
|
| 60% | 75% | 80% | 85% | 90% | ||
|---|---|---|---|---|---|---|
|
RATE
|
3.02%
|
3.63%
|
3.80%
|
4.00%
|
4.41%
|
|
| Term | 60% | 75% | 85% | 90% | |
|---|---|---|---|---|---|
|
2-Year Fixed
|
1.09%
|
1.93%
|
2.48%
|
2.73%
|
|
|
5-Year Fixed
|
3.00%
|
3.42%
|
3.67%
|
3.88%
|
|
| Term | 60% | 75% | 85% | 90% | |
|---|---|---|---|---|---|
|
2-Year Fixed
|
2.67%
|
3.09%
|
3.41%
|
3.71%
|
|
|
5-Year Fixed
|
3.54%
|
3.93%
|
4.12%
|
4.26%
|
|
| 80% | 90% | 95% | ||
|---|---|---|---|---|
|
RATE
|
2.25% - £999 Product Fee
|
2.75% - £999 Product Fee
|
3.62% - No Product 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%
|
|
| 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%
|
|
According to Nationwide’s HPI…UK house prices increased by 0.4% in May, after taking account of seasonal effects. This resulted in a slight pickup in the annual rate of house price growth to 1.3% in April, from 0.6% the previous month
Link opens a third party website
Seasonally adjusted residential transactions in April show a fourth consecutive month-on-month increase, rising 5% from 86,420 in March 2024 to 90,430 in April 2024, according to the latest HMRC statistics
Link opens a third party website
We’re thrilled to announce that MAB took home a number of accolades at this year’s Mortgage Strategy Awards.
Taking place at the JW Marriott Grosvenor House in London on Wednesday 22nd May, the event brought together industry professionals nationwide to celebrate excellence across the mortgage industry.
MAB was voted Best Mortgage Broker (More Than 50 Advisers)
We are thrilled to introduce the latest addition to our Business Development Team, David Balfour.
He will work closely with our specialist new build team, supporting our new build partners, ensuring their buyers continue to receive the best level of service.
Amazing news!
Our CFO and co-owner, Claire Taddei, has been named Woman of Distinction at the 2024 Scottish Mortgage Summit and Awards! Congratulations!
This award recognizes an outstanding female trailblazer, in any facet of the mortgage industry, whose astounding personal and professional achievements have earned them a place among the industry’s best.
Claire is a pleasure to work with and works extremely hard to drive the business forward. This is a long over-due award! Well done Claire!
James has been looking after us and he’s been absolutely incredible!
Super friendly and approachable.
Couldnt’ recommend him and Mortgage Advice Buerau more!
– A Pedrotti
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