Mortgages news: page 3
- June 2023
Resolution Foundation publishes mortgage crunch analysis
The Resolution Foundation estimated households whose fixed-rate mortgage deals expire in 2024 face an average annual repayment increase of £2,900, a figure Labour quoted as applying to this year.
- May 2023
Saltus survey finds one in five would cut pension contributions to cover mortgage costs
A May 2023 survey of 2,004 people by financial planning firm Saltus found one in five said they would have to cut pension contributions to cover rising mortgage costs.
- April 2023
SMI opened to employed Universal Credit claimants
The Department for Work and Pensions has changed Support for Mortgage Interest so employed Universal Credit claimants can qualify, cutting the waiting period from nine months to three.
Help to Buy - Wales opens to first-time buyers and home movers with a 5% deposit for homes up to £300,000
The Welsh Government's Help to Buy Wales shared equity loan scheme applies to new-build homes up to £300,000 from 1 April 2023, for first-time buyers and home movers with a 5% deposit.
Help to Buy - Wales price cap rises to £300,000 with EPC B requirement
The Help to Buy Wales purchase price cap rose from £250,000 to £300,000 on 1 April 2023, and every home sold through the scheme must now meet a minimum energy rating of EPC B.
- March 2023
FCA publishes guidance for firms supporting mortgage borrowers affected by living costs
The Financial Conduct Authority published finalised guidance on 10 March 2023 setting out how firms should support existing mortgage borrowers affected by rising living costs.
Support for Mortgage Interest waiting period reduced
The waiting period for Support for Mortgage Interest is to be cut from nine months to three months in spring 2023, alongside changes to the zero earnings rules, according to a benefits timetable.
- February 2023
Share of first-time buyers taking ultra long-term mortgages more than doubles
UK Finance figures show 18% of first-time buyers took out a mortgage term longer than 35 years in February 2023, up from 8% a year earlier, as longer terms spread among home movers too.
- December 2022
NIESR projects peak Bank Rate effects on mortgage holders
The National Institute of Economic and Social Research projects that nearly four million UK households will face higher monthly mortgage repayments, typically around £400 more, once Bank Rate peaks.
House purchase lending begins sustained year-on-year decline
UK Finance reports that lending to first time buyers and home movers fell year on year in every month from December 2022, with a further contraction expected in the fourth quarter of 2023.
Industry announced voluntary pause on mortgage possessions over the festive season
UK Finance reported that lenders agreed a voluntary pause on mortgage possession activity over the festive season, as possessions fell to 860 in the final quarter of 2022.
Minister announces Help to Buy - Wales extended to March 2025 with new price cap and EPC rules
The Welsh Government extended Help to Buy Wales to March 2025, raising the purchase price cap from £250,000 to £300,000 and requiring homes sold through the scheme to meet EPC B.
- October 2022
Starting threshold for main residential LTT rises to £225,000 in Wales
The Welsh Government raised the starting threshold for main residential Land Transaction Tax in Wales from £180,000 to £225,000 on 10 October 2022, with the first band from £225,000 to £400,000 taxed at 6%.
- September 2022
Welsh Government announces changes to main residential LTT rates and bands
The Welsh Government announced on 27 September 2022 that main residential rates of Land Transaction Tax would change on 10 October 2022, raising the starting threshold from £180,000 to £225,000.
FPC withdraws mortgage affordability test
The Bank of England's Financial Policy Committee has withdrawn its mortgage affordability test, which required lenders to check borrowers could still pay if rates rose by 3 percentage points.
September 2022 fiscal event drove market reactions and a spike in mortgage rates
The September 2022 fiscal event pushed consumer confidence to its lowest recorded level and spiked mortgage rates, before most of the announced measures were rapidly unwound.
- August 2022
FPC withdraws affordability test Recommendation for mortgage lending
The Financial Policy Committee has withdrawn its affordability test Recommendation for mortgage lending from 1 August 2022, leaving the loan to income flow limit and the FCA's responsible lending rules in place.
- June 2022
Leasehold Reform (Ground Rent) Act 2022 comes into force
The Leasehold Reform (Ground Rent) Act 2022 came into force on 30 June 2022, ending financial ground rent on most new long residential leases in England and Wales.
Leasehold Reform (Ground Rent) Act 2022 comes into force
The Leasehold Reform (Ground Rent) Act 2022 came into force on 30 June 2022, ending ground rents on most new residential leases in England and Wales.
Stamp Duty holiday ended, equity withdrawal for purchase fell away
Equity withdrawal at remortgage to fund additional property purchases fell back towards pre-pandemic levels after the temporary Stamp Duty holiday ended, UK Finance's Q1 2022 review reports.
- April 2022
Mortgage Charter published covering UK mortgage borrowers including Scotland
The UK government has published the Mortgage Charter, setting out standards lenders will follow to help borrowers worried about higher rates, and it covers mortgage holders in Scotland.
- March 2022
ERC standards require penalty-free partial repayments
Lifetime mortgages meeting Equity Release Council standards have had to allow voluntary, penalty-free partial repayments since March 2022, though limits and early repayment charges still apply.