GOINGUP? The rise in mortgage approvals indicates that the downward trend in the market is over, suggests Duncan Farmer
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a decade ago, it does appear to be stable. That stability is almost certainly thanks to the historically low interest rates borrowers have enjoyed over the past ten years. Those low rates may well be set to rise but Mark Carney, Governor of the Bank of England, has said that any rises will be slow and steady and most analysts do not expect the Bank’s monetary policy committee to raise rates until at least the middle of next year. By then, of course, we will have a much clearer idea of the impact of Brexit on the economy. It could be that should we leave the EU without a deal and the economy suffers the committee could decide to cut rates rather than raise them. In the meantime, anyone who is concerned about the medium-term direction of interest rates should take a look at best-buy mortgage tables. Skipton Building Society and Santander bank have five-year fixed-rate deals at less than 1.85 per cent. By the time the deals expire in 2024 the shape of the economy and the direction of interest rates are anyone’s guess.
he latest house price statistics from the Halifax, Britain’s biggest mortgage lender, show that the market appears to have bucked its downward trend and that prices and mortgage approvals are rising. The headlines from its report suggest that on average prices across the UK rose 2.5 per cent over the year to September and by 1.8 per cent in the past three months. Mortgage approvals, which are a good indicator of the number of completed sales, rose to 66,440, which is not far off the five-year average of 66,550 and 2,000 above the previous 12-month average. The mortgage market has been slow but steady over the past five years. Although it is far lower than the average of 110,000 a month seen between 2002 and 2007, but then there was dramatic volatility. Although the housing market is not currently having the exciting rises – and less exciting but equally dramatic falls – seen before and after the financial crash
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t’s a tough question for youngsters – do I put all my savings aside to raise a deposit for my first home or should I start putting it into a pension? According to a survey among 18 to 34-year-olds one in three says that housing is their priority; one in ten says that student debt stops them doing anything and a similar number says that they change jobs too often to think about a pension. The research by Prudential also suggests that one in six believes that home ownership is beyond their reach. The research also suggests that one in five youngsters believes that their parents will give them money towards their first home and that one in ten is still living at home in order to save for a place of their own.
Variable Rates Lender
Rate
Until
Rev. Rate
APR
Max. LTV
HLC
ERC
Product Fee
Exit Fee
Yorkshire BS
1.17%
Discount from SVR until 31/12/2020
4.99%
4.2%
65%
n/a
1% until 31/12/2020 10% overpayments p.a. without penalty
£1495 Product Fee
£90
Leeds BS
1.38%
Tracker over base until 5.69% 31/10/2020
4.8%
75%
n/a
3/2% until 31/10/2020 10% overpayments p.a. without penalty
£995 Product Fee
£199
Mx £1m. Free Valuation. Free legals for remortgages.
Accord (Intermediaries Only)
1.74%
Discount from SVR until 328/02/21
4.99%
4.3%
85%
n/a
None
£495 Product Fee
£90
Mx £1m. Free valuation. Free Legals for remortgages
Coventry BS
1.95%
Variable rate for term (not linked to Base Rate)
n/a
2.0%
50%
n/a
None
£999 Product Fee
£125
Mx £2m. Free Valuation. Free legals for remortgages.
Notes
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17/10/2018 11:13