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HMRC: November residential transactions up 19.3% on last year

UK residential transactions in November 2020 stood at 115,190, 19.3% higher than November 2019 and 8.6% higher than October 2020, according to the latest stats from HMRC.

On the non-residential front transactions stood at 9,970, 6.9% higher than November 2019 and 10.3% higher than October 2020.

Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Transactions are always a better indicator of market health than more volatile house prices.

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“However, despite these numbers showing a still-accelerating trend, they reflect sales which were agreed several months previously. Since then, the market has been moving closer to hibernation as is traditional at this time of year.

“It will be a few months at least before transactions fall in line with the reduced activity that we have been seeing on the ground over the past few weeks. Nevertheless, prospects for 2021 remain relatively positive bearing in mind the determination of the overwhelming majority of buyers and sellers to complete their moves even if inevitably some will miss the stamp duty deadline.”

Paul Stockwell of Gatehouse Bank added “The UK property market has undergone an incredible turnaround this year. In the space of seven months, sales volumes have rebounded from the lowest level since records began to a five-year high in November.

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“The latest data shows mortgage approvals still running at a 13-year-high so, while it’s widely accepted that the bumper house price growth we’ve seen this year must cool as we enter 2021, a decline in the number of transactions is by no means assured. Annual growth in sales volumes has actually accelerated, more than doubling in the space of a month, which is excellent news for the property market as a whole.

“It is entirely possible that volumes hold up next year, even as valuations cool after a glut of activity fuelled by the stamp duty holiday and a widespread desire to move to larger homes after repeated lockdowns.”

Source: Mortgage Introducer

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The Scottish property market tipped to fly in 2021

THE logistics and residential real estate sectors of the property market in Scotland have been forecast to “dramatically outperform” in 2021, when Brexit will quickly fade as a major issue after five fractious years, a new report declares.

The dramatic shift to online shopping during the pandemic has led to investors flocking to put money into property in the logistics sector.

Property firm CBRE expects that trend to continue next year, when it predicts that funding will become available in Scotland for investment in additional warehouse space.

According to CBRE, the pandemic has underlined the essential role of the logistics sector in sustaining the flow of goods. It anticipates that the year ahead will see occupiers focus on building more resilient supply chains, increasing capacity and diversifying suppliers to safeguard against future disruptions.

CBRE says £174 million has been invested in industrial and logistics property in Scotland so far this year. While this is currently down on the £185m invested last year, it is expected the 2020 total will reach the five-year average of £200m if deals under offer and likely to conclude before the end of the year are taken into account.

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David Reid, associate director of CBRE Scotland’s industrial and logistics team, said: “We expect 2021 to be another strong year for our market in Scotland. The incredible take-up during 2020 has resulted in critically low stock levels and with continued strong demand we urgently need new speculative development to meet the future needs of occupier requirements. We are working with a number of developers to plug this shortfall in supply.”

CBRE’s 2021 UK Real Estate Market Outlook forecasts that the logistics and residential sectors will achieve significant growth next year, although it notes that a weaker economy will lead to lower and even negative rental growth.

The agent says there has been a reduction in overall real estate investment in Scotland of around 50 per cent this year so far, dipping to £1.06bn from £1.99bn in 2019 amid continuing Brexit uncertainty. Next year, though, it expects investment to rebound to £1.5bn, taking it closer to the five-year average of £2.1bn.

Steven Newlands, executive director in CBRE’s investment team, said: “Demand is expected to come from a wide variety of sources, including sovereign wealth funds, overseas institutions and European funds. Overseas private investors are also expected to be particularly active. “For now, investors are focusing on the winners from the pandemic: the logistics and residential sectors and core assets with near-guaranteed income. In 2021 we expect this to continue until the vaccine is rolled out.”

The report flags expectations of a gradual recovery in the office market, with investment and take-up expected to steadily recover after a difficult start to the year. CBRE notes that UK office yields will remain stable despite capital values falling by around 11 per cent over 2020 and 2021.

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While significant doubts remain as to whether the UK and European Union will agree a trade deal before December 31, CBRE expects the Brexit issue to gradually fade. It said next year will see a recovery in the commercial property investment market because of record low interest rates and an “abundance of capital looking for a return”. This year the market has stalled amid the uncertainty caused by the pandemic, as restrictions have limited the ability of investors to travel to inspect sites. But Mr Newlands said: “These concerns, as well as the restrictions, will ease over time for some asset types as the occupier market recovers.”

CBRE hailed the resilience of the residential market, and expects it to perform strongly in 2021, supported by “tax incentives, resilient demand and lagging supply.” Mr Newlands said: “Despite Covid-19 restrictions, investment into the residential sector was strong in 2020. There is a high level of equity targeting the build-to-rent sector and lending also remains highly competitive.”

Miller Mathieson, managing director of CBRE Scotland and Northern Ireland, said: “In Scotland we will have many opportunities and challenges in common with the rest of the UK. In particular we will see significant activity in the logistics sector as values improve and new speculative development becomes viable. This is the favoured sector of investors and Scotland still has major growth potential. Similarly, I think we will, at last, see Scotland embrace all the different forms of residential investment around affordable housing, build-to-rent and co-living.

“Our biggest challenge will undoubtedly be in the retail sector with the continued growth of online sales and the increasing number of CVAs and administrations.”

By Scott Wright

Source: Herald Scotland

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NatWest to reintroduce 90% LTV mortgages

NatWest is reintroducing a range of 90% LTV residential purchase mortgages to enable customers with smaller deposits to own their own home.

From 16 December, the bank will be reintroducing 90% LTV products for its NatWest and Royal Bank brands.

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The bank will be one of the first lenders to offer this for both first-time buyers and existing homeowners.

There are four new products, across the purchase range which will benefit customers looking to take a 2 or 5-year purchase deal with an LTV of 90%.

Gary Sutherland, head of mortgages and protection at NatWest, said:“We are committed to helping people through the home buying journey, whether that’s customers’ moving house or taking their first step on to the property ladder.

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“For first-time buyers, raising a deposit is still the biggest challenge.

“By reintroducing our 90% offering, we are pleased to be able to expand our support for the market to include both home movers and first-time buyers, making it easier to take their first step onto the housing ladder.”

This follows the announcement of NatWest’s first ever green mortgage, which offers a discounted interest rate to customers purchasing a property with an energy efficiency rating of A or B.

By Jessica Nangle

Source: Mortgage Introducer

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Bank of England: Loan values rise by 2.9% annually in Q3

Despite a decreasing share of high loan-to-value (LTV) borrowing, mortgage lending remained strong in Q3 with the outstanding value of residential loans up 2.9% compared to a year earlier.

The Bank of England’s (BoE) latest quarterly mortgage lending data revealed there were £1,527.3 billion of mortgages outstanding at the end of Q3.

Meanwhile the value of new mortgage commitments – which is lending which has been agreed to be advanced in coming months – went up by 6.8% when compared to the same quarter in 2019. It reached £78.9 billion, according to the BoE, which is the highest level since 2007.

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The value of gross mortgage advances during the quarter was down 14.7% on Q3 2019 at £62.5 billion.

What’s more the proportion of mortgages advanced during the quarter with LTVs of 90% or more were 3.5% which is 2.4 percentage points lower than a year ago.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “This is no real surprise with many lenders pulling back from this market, and it is only just starting to recover, which is good news for first-time buyers in particular.”

Commenting on the rest of the data he added: “The Bank of England figures show a strong lending market, as we have seen on the ground, with new commitments for the coming months some 6.8% higher than a year earlier.

“There is plenty of business in the pipeline which is working its way through as buyers try to take advantage of the stamp duty holiday. As long as they use good advisers – a mortgage broker and a switched-on solicitor – this should be possible, despite some scaremongering that they are already too late.”

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A ‘precarious’ market

But Karen Noye, mortgage expert at Quilter, thought today’s data painted a ‘precarious’ picture of the housing market at the moment.

“The market is clearly burning bright thanks to the fuel poured on it as a result of stamp duty cut but whether the fire can keep blazing is yet to be seen,” she said.

“The continued increase in house prices is likely to be unsustainable and if the stamp duty holiday is dropped in March and significant economic headwinds as a result of the pandemic start to bite, we may see a very different picture with borrowing and lending being significantly curtailed.”

Noye thought the fact the value of new commitments had increased by as much as 6.8% was ‘worrying’ and ‘should ring alarm bells’.

“While it would be foolish to draw comparisons between the mortgage market now and the one back when the financial crash hit in 2008, we are dealing with unchartered waters and it is worth proceeding with caution,” she said.

By Kate Saines

Source: Mortgage Finance Gazette

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Number of residential transactions up by 8.1%

The provisional seasonally adjusted estimate of UK residential transactions in October 2020 was 105,630, 8.1% higher than October 2019, according to data from the HMRC.

On a monthly basis, the number of UK residential transactions saw a 9.8% uplift.

Looking to non-residential transactions in October 2020, this figure stood at 9,140, which was 5.1% higher year-on-year, and up 6.2% on September 2020.

In addition, on a non-seasonally adjusted basis, there were 121,740 residential transactions in October 2020 which is a year-on-year increase of 13.7% and 23.7% higher than in September 2020.

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There were 9,840 non-residential transactions in October 2020, non-seasonally adjusted, which was down 6.1% on October 2019 however, up 12.8% month-on-month.

Sam Mitchell, chief executive of Strike, said: “October was another busy month for the housing market, with transactions still rising despite the tougher lockdown restrictions.

“The government’s stamp duty holiday has created such a strong pipeline of activity that we believe this pattern could continue right up until the end of March.

“It’s shaping up to be a phenomenal end to the year for the UK property market.

“News of a vaccine has boosted confidence, and people are still rushing to benefit from the stamp duty holiday incentive – both contributing to us having a record-breaking day for offers just last Monday.

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“Regardless, we don’t expect any change in the rising number of people looking to move in light of changing circumstances, with the lockdown baby boom and flexible working being two of the many reasons we’ve had more sellers than ever knocking at our door.”

Nigel Purves, chief executive of Wayhome, added: “The HMRC has reported a continued rise in the number of transactions in the residential property market, likely as buyers rush to complete before the stamp duty cut ends in March.

“The property boom is so far showing no signs of slowing down, and there is a risk of a two-track market emerging, where those who can afford to buy are accounting for the increase in property transactions and the reluctant renters and first time buyers are left behind.

“It’s time we address how to even the playing field when it comes to homeownership.”

Paul Stockwell, chief commercial officer at Gatehouse Bank, said: “The pent-up energy buyers have brought to the housing market since the end of the first national lockdown hasn’t abated and transaction volumes continue to climb.

“Deal levels have recovered from the April slump and are now higher than last year’s figures and, with data from the Bank of England showing mortgage approvals in September represented the highest levels of agreed borrowing since before the Global Financial Crisis, this trend looks likely to continue over the coming months.

“However, with the stamp duty discount deadline looming in March, sellers and buyers alike will feel the pressure to get the deal over-the-line as soon as possible, heaping pressure on the property industry as we close out the year.”

By Jake Carter

Source: Mortgage Introducer

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Property Transactions Are Back To Pre-Covid Levels

There were just over 98,000 residential property transactions in September, 0.7 per cent lower than in September 2019 but 20.3 per cent higher than in August this year.

The figures come from the Inland Revenue which logs monthly property transactions completed in the UK with value of £40,000 or above for Stamp Duty Land Tax purposes.

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‘Provisional residential transactions estimates in September 2020 have noticeably increased compared to August 2020, likely due to the continued release of pent-up demand within the property market since March 2020 and early impacts from the temporarily increased nil rate band of SDLT’, said the Revenue.

Residential transactions decreased significantly in April 2020, reflecting the impact of the Coronavirus and public health measures taken in response.

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Between 2005 and 2020, monthly transactions have varied between 160,000 (the height hit in 2006) and a low of 40,000 in August this year. At close to 100,000, the number of transactions is back up to levels seen consistently since 2013.

The nil rate band for residential SDLT was increased to £500,000 from 8 July 2020 to 31 March 2021 for transactions in England and Northern Ireland.

Source: Residential Landlord

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Residential Mortgage Market Current Climate 2020

2020 has been a very strange one for many different reasons, not just the COVID-19 pandemic but all of the many ways it has impacted businesses and lives. UK Industries that were thriving, suddenly ground to a halt due to lockdown restrictions. The UK property market has experienced a very unusual journey since the Government first announced the lockdown which started in March 2020.

How Lockdown affected Residential Mortgages

The restrictions effectively meant that houses could not be bought or sold, no viewings could take place and estate agents’ offices were not open to the public. The property market came to a complete standstill, awaiting news of when lockdown restrictions would be lifted. It was estimated that 450,000 buyers’ and renters’ plans were put on hold during this period.

The construction of new builds was also put on hold for a while, where social distancing was not possible, so this put a big delay on the exchange of contracts for new build properties. So, while nobody could buy homes, the residential mortgage market naturally had little demand until lockdown restrictions were lifted again.

However, even in the early days of lockdown, a search trend appeared; there was a big increase in people searching for properties outside of city centres and busy towns, looking for homes with more space and gardens. The impact of being confined to their home for such long periods had clearly given a lot of people some thinking time and a need to have more space. Cities and towns had also emerged as the main hotspots for Covid-19 cases, so this could also be a factor in the increased house hunting outside of these areas.

Post-Lockdown in the Property Market

Once the restrictions lifted in May 2020 and viewings could take place and properties could be sold again, the market started moving forward with deals. What really helped get the property market back on track though, was the Government’s announcement to introduce a stamp duty holiday.

From 8 July a temporary reduced rate of stamp duty land tax was brought into effect, with first time property purchases of up to £500,000 having no stamp duty to pay at all. This gave a lot of people the opportunity to make a house purchase that they would not have been able to afford without saving up to factor in the stamp duty rate.

While this was a great catalyst for house purchases, the fact that the UK was about to go into recession and many people were facing reduced furlough wages, and the possibility of future redundancies, many lenders had to adjust their lending criteria, in some cases requiring bigger deposits due to the increased risk they faced.

Mortgage lenders quickly had to react to the unprecedented situation they found themselves in, with mortgage holidays also being introduced, which left many lenders receiving considerably less in mortgage payments in 2020.

After having a lull in application numbers during lockdown to process, there were suddenly lots of applications coming through but some lenders did not the same staff levels to deliver the work, which slowed that aspect of the market down slightly. But the biggest problem post-lockdown for lenders was to re-work their lending criteria to try and curb the expected risks that lay ahead with the UK economy crash.

COVID-19’s Impact on UK House Prices

After the mini boom of house sales when lockdown restrictions lifted, there has been a lot of buoyancy in the property prices. In October, it was announced that the average asking price for properties hit a record high and record numbers of mortgage applications have also been recorded. This was due to the combination of the stamp duty holiday and the catch up after lockdown, added to with more people looking to move out of cities and towns.

The Bank of England base rate reduced to 0.10% in March and this impacted the interest rates of loans including mortgage loans. The market has seen mortgage rates hit as low as around 1.28% for the applicants who are moving home and that meet the lending criteria. First Time Buyers are also seeing better interest rates. Average rates for 2-year fixed mortgages sat below 1.5% throughout the first half of the year but there has been an upturn since.

So, for First Time Buyers, with the stamp duty holiday and very low interest rates, it has been a very opportune time to get onto the property ladder, at least for those who have not been negatively financially impacted by Covid-19. However, they may have found it harder to get a mortgage now though, with the stricter lending criteria that has been introduced.

It has also been a good time for people looking to sell their property and downsize, as they are generally getting a value for their property that is much higher than it would have been 12 months ago. So, where people are selling a more expensive property to buy a lower value home, this has been a good time to do so with the house prices being high but the opposite applies for people buying a considerably more expensive property than their existing one.

100% Mortgages Re-introduced

For the first time in a long time, mainstream mortgage lenders have started to re-introduce 100% mortgages to help those looking to buy a property but who don’t have a deposit. However, the first types of these mortgage that are available do require a temporary deposit to be put down by parents or another person for three years, to protect against the risk associated with a fall in house prices.

House Price Crash Predictions

The current high property values that are being achieved will not last and property experts are expecting a crash in house prices at a point in the near future, as these are exceptionally high values we are seeing right now as well as high numbers of sales. In September, sales agreed was up 70% compared to 12 months previous, while October’s figures are looking closer to a 58% increase on last year.

The market is also running at a very fast pace right now with sales going through really quickly and this doesn’t look like it is going to slow down just yet. Recently, estate agents have also noticed that many sellers are becoming overly optimistic about the asking price, as they have heard about record high sales.

With unemployment at 4.5% for June to August 2020 and more redundancies expected from businesses that are not recovering as quickly as they need to in order to keep their workforce on, this will soon have an impact on property sales because less people will be able to get mortgages.

As well as unemployed people not being able to buy a property, many people will be worried about potentially losing their job in the future and therefore will not take on the risk of getting a mortgage, choosing to rent instead.

Many property experts are looking at the 2008 property crash to try and predict when this one will happen, however the circumstances are clearly very different. Brexit would have triggered changes to the residential mortgage market but the Covid-19 pandemic shook the market up before that came into the picture.

The timeframe that many experts are suggesting the crash will happen is around the 12-18 months mark, so towards the end of 2021 or going half-way into 2022. The stamp duty holiday is due to end in March 2021 and this should see a big slowdown in property purchases.

Another factor that could come into play is whether the UK will go into lockdown restrictions again that put house sales on hold. Wales announced their 2-week lockdown starting on 23 October 2020, which includes estate agents closures. England has not yet announced a similar approach, choosing local lockdown restrictions without impact to house sales at this point.

Is Now a Good Time to Apply for a Residential Mortgage?

For many people, the stamp duty holiday and low interest rates make this a really good time to buy a house. However, house prices are very high but have been falling since July. First Time Buyers looking for properties at the lower end of the house price range should be able to buy a property without the value being too inflated. They should calculate the amount they can save through the stamp duty holiday and the lower monthly mortgage payments that they can now apply for, to see whether it is worth waiting for house prices to drop again.

Working with a leading whole-of-market Residential Mortgage Broker such as UK Mortgage Broker, we are able to cut through the minefield of lender offers, limitations, max LTV’s and special requirements to find the best residential mortgage offers for not only First Time Buyers, but also experienced Residential Mortgage owners

Another consideration is the extension to the Help to Buy Scheme which gives home buyers the opportunity to benefit from financial support for buying new build properties.

How to get the Best Residential Mortgage Deals

If you are looking to take advantage of the current stamp duty holiday and buy a property, you may find that the high street lenders have much stricter lending criteria right now and you might benefit from using a Residential Mortgage Broker instead who can provide you with truly independent and impartial Residential Mortgage Advice.

A mortgage broker can help you to find the best deal to suit your specific circumstances, such as your income, any outstanding debt, adverse credit history or any other detail that can make it harder to get a mortgage such as being self-employed.

A whole-of-market Residential Mortgage Advisor has access to mortgage deals that you would not be able to find directly, often with exclusive rates to save you money over the term of the mortgage. They also take the hassle out of searching through tons of different mortgage deals and can help you to prepare your documents and other requirements to make sure the mortgage goes through without unnecessary delay. With the stamp duty holiday ending on 31 March 2021, it is important to get the process going as quickly as possible, so Contact Us today to speak with one of our Specialist Residential Mortgage Advisors and get started on finding your perfect mortgage deal.

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HMRC: Residential transactions see monthly increase of 15.6%

Residential transactions saw a monthly increase of 15.6% in August according to the latest UK Property Transactions Statistics by HMRC.

Despite the monthly increase, year-on-year the figures show that the August figures (81,280) are 16.3% lower than August 2019.

There were 8,350 non-residential transactions in August, which is a yearly decrease of 15.5% and monthly increase of 7.5%.

HMRC’s data reveals that the residential transactions for Q2 was the lowest quarterly total since Q1 2009 following impact from the COVID-19 pandemic.

Mark Harris, chief executive of SPF Private Clients, said: “Despite only being introduced the previous month, the stamp duty holiday was already filtering through to transaction numbers in August as buyers rushed to take advantage of the saving.

“Despite the recovery in number of transactions compared with the previous month, the pandemic has had a significant impact on the market with August’s numbers down significantly on last year’s.

“The data illustrates just how long it takes for property transactions to complete and at the moment, with some lenders struggling with service levels, along with surveyors and lawyers, it is all taking longer than it usually would.

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“Buyers need to be patient, as well as engage good advisers who can help steer the transaction through in as prompt a fashion as possible.”

Alan Cleary, managing director for mortgages at OneSavings Bank, added: “After a rocky start to the year, the continued uptick in activity is not only good for the market, but for buyers and sellers who are finally making progress with their property plans.

“People on both sides want to make the most of low borrowing costs and the temporary removal of stamp duty which for now at least is helping to bolster the market.

“However, as we head into the often quieter months of the year, the uncertainty around the UK economy could mean that the strong levels of activity leading up to this point may start to wane.”

Jeremy Leaf, a former RICS chairman, believes that the market is showing determination to get transactions through.

Leaf said: ‘Transactions are a better barometer of market health than more volatile house prices.

“Although a little historic, and there is a delay between the point when the sale is agreed and completion, these numbers still demonstrate considerable resilience when we were emerging from the previous lockdown and before the stamp duty holiday could have much impact.

“On the ground, we have noticed no sign of sales collapsing, renegotiating on deals or price reductions in the past few days – more of a determination to carry on.”

By Jessica Nangle

Source: Mortgage Introducer

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Kensington returns to 85% LTV on residential lending

Kensington Mortgages has reintroduced lending at 85 per cent LTV across all residential products.

Its return to the LTV tier comes alongside cuts to rates and relaunches across its residential and buy-to-let ranges.

The specialist lender has cut rates up to 0.4 percentage points across its residential product range, with an additional reduction of 0.2 percentage points on its residential ‘Hero’ range.

The ‘Hero’ range is targeted towards borrowers such as paramedics, nurses and teachers, with rates starting at 3.09 per cent for a two-year fix at 75 per cent LTV.

Meanwhile, the residential ‘Select’ range, which the lender describes is for borrowers who “don’t quite fit the high street”, starts at 1.99 per cent for a two-year fix at 70 per cent LTV and 3.84 per cent for a two-year fixed rate at 85 per cent LTV.

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The maximum loan amount on the residential Select range has also increased from £750,000 to £850,000. For buy-to-let applicants, meanwhile, the maximum loan amount has risen from £500,000 to £750,000.

Rates across buy-to-let have reduced by up to 0.3 percentage points, starting at 3.59 and 3.94 per cent for a two- and five-year fix respectively at 75 per cent LTV.

The lender has also relaunched its ‘eKo’ residential mortgage, offering £1,000 cashback to borrowers who increase the energy efficiency of their home.

Craig McKinlay, new business director at Kensington Mortgages, said: “We’re committed to helping borrowers at every life stage. This means providing tailored products and our latest re-launches open up new opportunities for our intermediaries and their clients.

“Our rate cuts reinforce our commitment to helping borrowers who are underserved and undervalued by high-street lenders and we’re confident these latest offerings will be welcomed.”

Ayodele Johnson, principal at Johnson Adviser, commented: “This is welcomed news to the mortgage broking industry both for advisers and clients. It comes at a time when it is needed the most.

“Kensington Mortgages have always been known to champion niche areas such as contractors, sole traders, adverse credit history and limited company portfolio landlords. Reducing their rates brings them back in line with some of their competitors.”

By Chloe Cheung

Source: FT Adviser

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Foundation Home Loans enhances residential range

Foundation Home Loans has introduced enhancements, including rate cuts, across its residential product range.

The lender has simplified its range by having rates with a maximum loan-to-value (LTV) of 65%, 75% and 80%.

Previously, the lowest rate of 2.79% was for a maximum LTV of 60% – now the maximum LTV is 65%.

Foundation has also increased its maximum loan size at the lower LTV level from £1.5m to £2m.

At 75% LTV, Foundation has cut all initial residential rates for both F1 and F2 borrowers, reducing its fixed rates by up to 20 basis points and discount rates by 10 basis points.

Products available include:

F1 borrowers: 3.39% 2-year fixed rate – reduced from 3.59%; 3.29% 2-year variable rate – reduced from 3.59%; 3.79% 5-year fixed rate – reduced from 3.99%.

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F2 borrowers: 3.59% 2-year fixed rate – reduced from 3.79%; 3.49% 2-year variable rate – reduced from 3.59%; 3.99% 5-year fixed rate – reduced from 4.19%.

All products have had their initial rates extended by three months – to 31 January 2023 for 2-year deals and 31 January 2026 for 5-year.

The changes follow on from last month’s introduction of 80% LTV versions of Foundation’s 2 and 5-year fixed-rates for both existing borrowers and first-time buyers, plus a new 80% two-year variable discount with no early repayment charges (ERCs).

Jeff Knight (pictured), director of marketing at Foundation Home Loans, said: “The specialist residential market is undoubtedly changing and the likelihood is advisers will be seeing a significant growth in clients who, for many reasons, miss out on the mainstream or will have accumulated credit blips, perhaps as a result of the COVID-19 lockdown.

“Our products are for those with extra-ordinary circumstances, such as multiple income sources through to credit blips.

“These changes simplify our residential range, whilst building on our residential criteria improvements to include a far wider range of complex income types and sources, and we calculate interest-only affordability on an interest-only basis.

“These changes and pricing upgrades mean that Foundation has many competitive options for specialist residential borrowers and we would urge advisers to contact their regional account managers to discuss our offering with them.”

By Jessica Bird

Source: Mortgage Introducer