Welcome to October’s Market Update, providing an interesting look into the UK’s mortgage landscape.
Great news for those working with MAB….this month’s lowest 2-year 90% LTV is a MAB exclusive – even more evidence that your clients are in great hands!
If you have any specific questions, please reach out whenever you need.
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The UK new build and mortgage industry continues to show resilience and growth as we enter the final quarter of 2024. Recent data reveals encouraging trends across the housing market, with notable developments in house prices, mortgage products, and regional performance.
House Price Growth
According to the latest Nationwide House Price Index, UK house prices experienced a significant uptick in September 2024. The annual growth rate reached 3.2%, marking the fastest pace since November 2022.
This positive trend is particularly encouraging for the new build sector, indicating growing consumer confidence and demand for housing. On a monthly basis, average house prices grew by 0.7%, with the average UK property price now standing at £266,094. This represents a slight increase from August’s figure of £265,375, demonstrating consistent growth in the market.
Regional Variations
The housing market continues to exhibit significant regional differences across the UK. Northern Ireland emerged as the top performer, with prices rising by 8.6% in Q3 2024. In contrast, East Anglia experienced a slight decline, with prices dropping by 0.8% over the year.
Scotland, however, has shown particularly strong growth. The average house price here reached £199,000 in July 2024, representing a substantial 6.0% increase (£11,000) from a year earlier. This annual rise was notably higher than the 4.7% increase observed in the 12 months to June 2024.
Scotland’s robust performance stands out against the more modest growth seen in England and Wales. In the rental market, Scotland also demonstrated unique trends.
The average rent in Scotland was £969 in August 2024, up 7.6% (£68) from the previous year. While this represents significant growth, it’s worth noting that Scotland’s annual inflation rate has been generally slowing since the record-high annual rise of 11.8% in August 2023.
These regional disparities highlight the importance of location-specific strategies for both developers and mortgage lenders. The strong performance in Scotland, in particular, suggests a resilient housing market in the region, potentially offering opportunities for investment and development.
Mortgage Market Innovations
The mortgage industry has seen increased competition and innovation in recent months. Notably, Nationwide Building Society has introduced a groundbreaking mortgage product allowing some first-time buyers to borrow up to six times their annual income. This initiative, which requires a 5% down payment and is limited to five or ten-year fixed-rate mortgages, aims to address affordability challenges faced by many prospective homeowners.
New Build Sector
The new build sector is showing signs of adaptation to market demands. While specific data on new build completions is not provided in the search results, the overall positive trends in the housing market suggest a favourable environment for new construction. Developers and lenders should continue to focus on meeting the needs of first-time buyers and addressing regional variations in demand.
Future Outlook
Looking ahead, the UK mortgage and new build industry faces both opportunities and challenges. The Bank of England’s decisions on interest rates will continue to play a crucial role in shaping market dynamics.
While another rate cut is not expected immediately, markets anticipate potential reductions in the coming months. As the industry navigates these complex market conditions, collaboration between developers, lenders, and policymakers will be essential to address housing needs and support sustainable growth in the UK’s new build and mortgage sectors.
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% |
|---|---|---|---|
|
5.27% - Halifax
5.53% - Halifax
5.63% - Leeds
5.64% - Furness
5.68% - Santander
|
4.90% - Barclays
4.90% - Coventry
4.99% - Virgin
5.08% - Virgin
5.09% - Halifax
|
4.47% - Accord
4.50% - Halifax
4.52% - Natwest
4.52% - Accord
4.55% - Barclays
|
4.39% - Furness
4.41% - Accord
4.42% - Virgin
4.44% - TSB
4.50% - Halifax
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.19% - TSB
4.19% - Santander
4.19% - Coventry
4.21% - Accord
4.25% - Natwest
|
4.19% - TSB
4.19% - Santander
4.19% - Coventry
4.19% - Accord
4.25% - Nawest
|
3.89% - Coventry
4.09% - Coventry
4.19% - TSB
4.19% - Santander
4.19% - Leeds
|
3.89% - Coventry
3.99% - Satnander
4.02% - Natwest
4.07% - Natwest
4.09% - Coventry
|
| 95% | 90% | 85% | 80% |
|---|---|---|---|
|
5.01% - Halifax
5.03% - Leeds
5.08% - Furness
5.11% - Skipton
5.12% - Halifax
|
4.43% - Virgin
4.49% - Nationwide
4.54% - HSBC
4.55% - Virgin
4.57% - HSBC
|
4.17% - Barclays
4.18% - Natwest
4.19% - Halifax
4.21% - HSBC
4.23% - Natwest
|
4.12% - Virgin
4.12% - Natwest
4.14% - TSB
4.16% - HSBC
4.17% - Barclays
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
3.90% - Natwest
3.92% - Halifax
3.92% - HSBC
3.94% - TSB
3.94% - Virgin
|
3.90% - Natwest
3.92% - Halifax
3.92% - HSBC
3.94% - TSB
3.94% - Virgin
|
3.69% - Coventry
3.90% - Natwest
3.92% - Halifax
3.92% - HSBC
3.93% - Coventry
|
3.69% - Coventry
3.70% - Barclays
3.71% - Barclays
3.74% - Natwest
3.78% - Halifax
|
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
|
2.10%
|
2.79%
|
3.15%
|
3.25%
|
3.85%
|
|
| 60% | 75% | 80% | 85% | 90% | ||
|---|---|---|---|---|---|---|
|
RATE
|
2.36%
|
3.05%
|
3.42%
|
3.51%
|
4.11%
|
|
| Term | 60% | 75% | 85% | 90% | |
|---|---|---|---|---|---|
|
2-Year Fixed
|
0.45%
|
1.24%
|
1.93%
|
2.48%
|
|
|
5-Year Fixed
|
2.40%
|
2.72%
|
3.22%
|
3.53%
|
|
| Term | 60% | 75% | 85% | 90% | |
|---|---|---|---|---|---|
|
2-Year Fixed
|
2.06%
|
2.53%
|
3.06%
|
3.56%
|
|
|
5-Year Fixed
|
3.04%
|
3.23%
|
3.67%
|
3.96%
|
|
| 80% | 90% | 95% | ||
|---|---|---|---|---|
|
RATE
|
2.63% - £999 Product Fee
|
3.57% - £999 Product Fee
|
4.17% - No Product Fee
|
|
| 80% | 90% | 95% | ||
|---|---|---|---|---|
|
RATE
|
1.35% - £999 Product Fee
|
3.57% - £999 Product Fee
|
4.17% - No Product Fee
|
|
| 75% | 80% | 85% | 90% | ||
|---|---|---|---|---|---|
|
25-30 Years
|
5.15%
|
5.28%
|
5.30%
|
5.63%
|
|
|
30-40 years
|
5.21%
|
5.34%
|
5.37%
|
5.70%
|
|
| 75% | 80% | 85% | 90% | ||
|---|---|---|---|---|---|
|
25-30 Years
|
5.28%
|
5.41%
|
5.43%
|
5.76%
|
|
|
30-40 years
|
5.34%
|
5.47%
|
5.50%
|
5.83%
|
|
The Mortgage Lender have recently released their latest Economic Update. Here are the key points:
Economic Growth
The UK economy showed resilience with 0.2% GDP growth in Q2 2024. The service sector, particularly information, communication, and professional activities, drove this modest growth.
Inflation and Interest Rates
Inflation continued its downward trend, reaching 6.8% in July 2024, a significant improvement from the 11.1% peak in October 2022. The Bank of England maintained its base rate at 5.25%, balancing inflation control with economic growth support.
Labour Market
The UK labour market showed signs of cooling, with unemployment rising slightly to 4.2%. However, wage growth remained robust, with regular pay growing by 7.8% in the three months to June 2024.
Housing Market
Average house prices fell by 2.4% in the year to July 2024, influenced by higher mortgage rates and cost-of-living pressures. The rental market saw significant increases, with private rental prices rising by 5.3% in the 12 months to July 2024.These indicators reflect an economy navigating various challenges, with positive growth and declining inflation, but notable shifts in the labour and housing sectors.
Bank of England Money and Credit statistics, report a rise in Mortgage approvals. This marks three consecutive months of positive growth in mortgage approval levels…..
Link opens a third party website
Matt Lowndes, Innovation Director at Mortgage Advice Bureau, provides insight on how Artificial Intelligience can further enhance the broker and customer experience…..
Link opens a third party website
Shared Ownership Week, ran from 25th September to 1st October, raising awareness about the scheme, supporting first-time buyers looking to purchase a share of their own home.
Our specialist New Build Team work with developers across the UK, helping buyers assess their suitability for the scheme and we are proud to support such a great initiative.
For more info, please visit: https://hubs.la/Q02RbzDd0
I recently had the pleasure of working with James Still from MAB for my mortgage application, and I cannot recommend him highly enough.
From start to finish, James was incredibly informative and friendly, making the entire process much more manageable.
James took the time to explain every step of the mortgage application, which can often be quite complex.
His expertise and guidance were invaluable, ensuring that we understood all our options and felt confident in our decisions.
What impressed me most was his commitment to providing excellent service. He was always available to answer any questions we had and made us feel like a priority throughout the process.
I wholeheartedly recommend James Still. He helped us navigate what can be a daunting process with ease, and I am so grateful for his support!
– George D
It’s that time of the year again when we start to look forward to our end of year Conference & Awards.
This year’s event will take place on the 29th November, at The Caledonian, Edinburgh. Watch this space for more info!
Following the opening of our new Edinburgh HQ, we are delighted to welcome Aaliyah Apete to our Customer Care Team.
Aaliyah demonstrates a passion for delivering the best levels of care and brings with her a proven track record in delivering results and outstanding customer service, thanks to her time at Business Stream and St. James Place.
Aaliyah takes up the role of Customer Care Coordinator and we’re excited to see the growth of this team as it continues to offer support to clients.
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