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This is our summary of news in the mortgage market over the last week that we thought was particularly interesting. Our views are often cited in several national publications, including; BBC News, The Times, Telegraph, City AM, FT Adviser and Daily Mail, as well as a number of key trade publications, so this should keep you ahead of the curve. If you have any questions on any of these stories, or would like further information, please do not hesitate to get in touch.
At a glance:
The perfect storm for rate rises…
Over the course of the last few days, several issues have compounded to create what we believe is the perfect storm for rate rises. High levels of uncertainty in the market, increased risk appetite from lenders, huge demand from borrowers seeking capital, lower processing capacity from lenders and swap rates increasing for the first time in over a year all indicate a sharp rise in rates is on the horizon.
The new key battleground for lenders: low LTV products
Lenders will continue to cut rate and fees on lower LTV products to attract lower risk borrowers. HSBC did this this week, reducing their 2-year fixed to 1.14% and their 5-year fixed to a market leading 1.34%, both with a £999 product fee at a maximum of 60% LTV.
Physical valuations are back… but so are delays
During the height of lockdown, we commented on how efficient lenders were in the face of the huge increase in online valuations. We believed this indicated a new normal going forward. However, many lenders are reverting back to physical valuations and relying on valuers’ comments.