UK inflation remains at 1.9% for March, Office for National Statistics says.
Decrease in Poor Credit mortgages available
Unbelievably, the number of Decrease in Poor Credit mortgages available available at the moment has gone down from 851 in October 2018 to just 590 this month, according to data from Moneyfacts.
The poor credit mortgage market is considered a specialist lending sector, so most of these mortgages are only available through Brokers. So it’s a shame that the brokers that deal with these are the ones that also charge a fee, hitting the people with the most needs even harder.
It’s refreshing to know that The Finance House not only can arrange poor credit mortgages they will also do it without charging a fee.
Skipton do away with wet signatures
No more wet signatures with The Skipton Building Society. Skipton, working with Brokers have now launched a new digital signature capability – they are starting to process some of their documentation via a digital signature.
This new process means being able to sign for a document online and no longer having to print, sign and post – saving you time and effort.
The first document you’ll be able to sign digitally for is their e-declaration form.
Platform does away with DSS conditions
Platform, who are the intermediary mortgage branch of The Co-operative Bank, are the latest firm to remove letting conditions and DSS conditions that stop landlords letting properties to tenants who receive housing benefit.
From the 1st April 2019, none of their mortgages will stop landlords from letting to tenants in receipt of housing benefit.
Landlords can let to tenants from April. This will also be made across all lending brands of The Co-operative Bank.
Already, NatWest has removed restrictions on buy-to-let landlords which stopped them from letting to DSS tenants.
This was probably because that in October, NatWest’s lending conditions came under fire about a case of a landlord who was refused a remortgage and threatened with revocation of the existing mortgage on the property because she was renting to a tenant in receipt of housing benefit.
The Work and Pensions Committee contacted NatWest, Co-Op and a series of other mortgage lenders including Kensington, Nationwide, Metro Bank and Precise, whether their buy-to-let mortgage policy allow landlords to let to tenants receiving any benefits including housing benefit.
Holmesdale Building Society has agreed terms to merge with Skipton
Holmesdale Building Society has agreed terms to merge with Skipton, subject to approval.
The merger will probably start on the 1st October 2018 and Skipton has already received consent from the PRA to approve the proposed merger.
Holmesdale started in 1855 and has 1 branch in Reigate, employing 26 people. Holmesdale decided that “it is in the best interests of current and future members to merge with a much stronger building society able to offer more choice and value to members in the long-term”.
Skipton will keep the branch in Reigate for at least 2 years from the start of the merger, then will be subject to the Society’s ongoing branch review process. Holmesdale members will be able to transact in any branch of the enlarged Society from the merger date.
Mike Kirsch, Chief Executive of Holmesdale Building Society, said:
“We firmly believe that this proposed merger is in the best interests of our members. Without the merger we would not be able to continue to provide the same range of products or good value pricing to our members. We believe we can offer enhanced security by merging with a much stronger building society able to offer more choice and value to members in the long-term.
“A merger with Skipton will result in Holmesdale members having access to Skipton’s large national branch network, its online, post, telephone and financial advice offering, and to a broader range of attractive products and services – from the time when the merger becomes effective.”
David Cutter, Skipton’s Group Chief Executive, added: “We have always made it clear that we would consider further merger activity where it is in the best interests of our members. We look forward to welcoming Holmesdale members on board and sharing with them our full range of financial solutions to help them plan for their life ahead.”
Stamp duty in Inner London
There are just 387 properties currently for sale at £300,000 or less in London Travel Zones 1 and 2 that would be stamp duty exempt for first-time buyers, according to HouseSimple data.
Extending the search area to include Travel Zone 3, the number of stamp duty exempt properties increases to 1,235.
Not surprisingly, the Royal Borough of Kensington and Chelsea has the fewest stamp duty exempt properties, with just six, including a tiny 113 square foot studio flat, in SW5, Earls Court. The boroughs of Camden and City of Westminster, both have just 18 stamp duty exempt properties currently on the market.
First time buyers should head to the borough of Croydon for the largest number of stamp duty exempt properties on the market today. Croydon has 795 properties
Santander change SVR
From the 23rd January onwards, Santander mortgage customers will automatically be moved onto a new follow-on rate (SVR) at the end of their fixed or tracker rate period unless they choose a new product.
Previously, customers were automatically moved onto Santander’s SVR at the end of their product term, which is currently 4.74%.
Santander’s new follow-on rate is a variable rate that tracks at 3.25% above the Bank of England Base Rate, giving a current rate of 3.75%.
The differential of 3.25% is guaranteed for as long as customers remain on the product. The rate payable will track all changes in base rate, either upwards or downwards.
Citizens Advice recently urged the FCA to make all lenders provide clear information to new and existing customers about how much they could lose by rolling onto a standard variable rate.
Its research found that customers who are rolled onto their bank’s standard variable interest rate at the end of a fixed term mortgage deal face an average penalty of £439 a year.
Metro Bank cuts five-year fixed rate
Metro Bank has lowered rates on its five-year fixed rate range for mortgages up to £2 million.
New rates are available from 1.84% up to 65% LTV and 1.94% at 70% LTV, both with a £999 product fee.
More : Metro Bank cuts high-LTV rates and launches large loan range
Other rates in the range remain unchanged and its 90% LTV product has increased slightly from 2.54% to 2.59%.
Metro has also launched a new five-year fixed rate remortgage range. New 65% LTV rates start at 1.89% with a £999 fee or 2.09% fee-free.
70% LTV rates are available at 1.99% with a £999 product fee and 20bps higher fee-free.
The Bank’s 90% LTV remortgage product has also increased by 5bps.