Ending Libor will have little impact

End of Libor ‘will have little impact on mortgage market’ https://t.co/bsFOLx0BNv

— FTAdviser (@FTAdviser) July 31, 2017

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Average LTVs continue to rise

Average LTVs continue to rise as lenders offer higher levels of lending

During the early months of the year there have continued to be a good selection of products available at 80% LTV from a number of lenders including Kent Reliance, The Mortgage Works, Aldermore, Leeds Building Society, Kensington and Precise. Kent Reliance remains the only lender offering 85% LTV products, although we may see some others extend their thresholds later in the year.



The 75% LTV bracket has been very competitive during the Q1 2013 with some excellent fixed and variable rates for investors to choose from. Landlords are clearly taking advantage of the improved market conditions to employ higher gearing in their properties, as the average LTV for mortgage offers processed by Property Hawk Mortgages in Q1 was up to 74.84% and the average loan size was £155,654.

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Your home may be repossessed if you do not keep up repayments on your mortgages.  

The Financial Services Authority does not regulate some forms of mortgage.

Increase in fixed rates as "perceived" inflationary pressures start to build

Mervyn King hinted in his Mansion House speach that there were some signs that quantitative easing was starting to work and that the £125Bn injection may be sufficient - I really hope so !!

The SWAP markets had already reached the same conclusion with 3 year SWAP rates bottoming out in February at 2.3%, having hit 3.11% earlier this month but now back at 2.98%; we doubt that it will suatain a sub 3% position for very long. And sadly lenders have reached the same view and have been gently pricing upward on prodcuts to absorb a likley higher level of underlying pricing.

On the plus side lenders are looking forwards and starting to initiate discussions about criteria improvements and changes to product profile. Rest assured this has not been a topic of discussion since the autumn of 2007. Two niche lenders are looking at new Buy to Let offerings that might cater for limited companies or HMO properties, albeit at a price. The judgement, thereafter, is whether the ability to raise extra capital and perhaps conclude an additional deal is justifiable against a higher cost.

We will get back to you with an e-newsletter in the next week or two but if you want to chat through any scenarios in the meanwhile we can formulate a plan with you that is ready to go when the lenders start to change their stance.

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