FINANCE
NEW PRODUCTS
– a great way for parents to help their children without having to gift them money. Meanwhile, Hinckley & Rugby Building Society has launched a fixed-rate mortgage for borrowers with unusual circumstances, including irregular income, credit issues, self-employment, or non-standard properties. Specialist 5-Year Fixed, up to 90% LTV, is 6.15%, with a £999 product fee. LOOKING AHEAD The Bank of England base rate, currently 5%, is still predicted to be cut when the Monetary Policy Committee meets on 7 November, following a drop in inflation to 1.7%. Some experts were predicting a second cut at the final MPC meeting of the year on 19 December, but this is less likely following the Budget. With underlying financial uncertainty remaining high, lenders may not reduce mortgage interest rates in line with the base rate, so if you are ready to buy now it makes sense to shop around and get the best deal you can, rather than wait in the hopes of a dramatic drop in mortgage costs that may not happen.
Lenders are working in other ways to make homeownership achievable. Skipton Building Society, for example, has extended its Track Record Mortgage, a 100% mortgage aimed at renters, to include shared ownership and new build apartments, and the maximum term has increased.The mortgage, which would previously loan an amount with repayments the same as the borrower’s rent, will also now lend 120% of monthly rent. Jen Lloyd, Head of Mortgage Products at Skipton said, “By increasing the maximum term from 35 to 40 years, allowing new build flats, introducing a shared ownership option, and adopting a more flexible approach to affordability, we’re removing some of the barriers people faced when wanting to use Track Record.” Also with a view to helping first time buyers, Suffolk Building Society has announced it will welcome joint borrower sole proprietor applications, allowing up to four people from two households to borrow from the society with one or two individuals on the title deeds
EXPERT COMMENT
“April Mortgages will now lend up to six times sole and joint income to rst time buyers and homemovers, meaning that even more borrowers can bene t from increased loan amounts. Higher loan-to-income caps will mean we can deliver peace of mind to far more borrowers across the UK, particularly those looking for help to secure their rst, second or dream home. Securing your rate for a period of ve to 15 years makes it easier to budget, and removes the stress of having to deal with rate uctuations every couple of years. Those with higher loan-to-values can then sit back and bene t from a rate that reduces with their LTV. I’m really excited to be bringing this exciting option to the market to help more people get on and keep moving up the housing ladder. The loan-to- income cap improvements are the result of ongoing discussions with mortgage brokers, demonstrating our commitment to working closely with brokers and delivering the products and processes they and their clients most need. April Mortgages is listening and looking to bring the change the mortgage market needs. Higher loan-to-income caps are a powerful tool in supporting borrowers in the face of continued house price growth.”
James Pagan, Director of Product & Portfolio Management, April Mortgages
–
First Time Buyer December 2024/January 2025 87
Made with FlippingBook interactive PDF creator