Latest Mortgage News
In the past few years, a raft of new rules and regulations affecting the mortgage industry have come into force. As a result, things are changing in the world of mortgages and rates, credit checks and approval ratings are all being affected. Keep reading to find out exactly how these changes could impact on you.
Mortgage rates are on the up
Although experts have been expecting rates to go up for a while now, the recent slew of mortgage rate hikes caught many by surprise. Despite the fact that the Bank of England kept interest rates fixed at 0.25% last quarter, at least ten major lenders put their mortgage rates up in the final week of September.
Lenders, including mortgage giants like Nationwide and Halifax, hiked up their rates for new mortgage deals by between 0.1% and 0.25%. This could signal an important shift in the mortgage market and may mark the end of rock bottom mortgage deals for buyers. If you’re considering purchasing a property in the coming months, it could well be worth acting sooner rather than later to secure yourself the best deal.
New rules for portfolio landlords come into effect
On 30th September, new rules affecting portfolio landlords came into effect. This means that landlords with four or more properties will now have to satisfy more stringent criteria when purchasing a new rental investment.
As well as being more costly and more time consuming, these new rules could potentially prevent landlords from securing mortgages for new purchases, even if the majority of their existing homes are turning a profit. If you’re a portfolio landlord who’s thinking about adding to your stable of rental properties, you’ll need to talk to an expert advisor about what these changes mean for you.
Mortgage approval rates fall
During the summer mortgage approval rates fell to their lowest level since September 2016. The increase in mortgage rates, introduction of enhanced credit checks and tougher rules for buy-to-let purchases are expected to have a further impact on mortgage applications in the coming months, with approval rates set to fall even further in the second half of 2017.
Renting a property on Airbnb could breach mortgage rules
Recent research by Telegraph Money has revealed that virtually none of the major lenders will allow borrowers to rent out rooms on Airbnb without prior consent. In fact, four of the big lenders won’t allow short term lettings at all while three major mortgage providers will only allow lettings if borrowers seek explicit permission. Borrowers who are granted permission could still find themselves faced with higher rates or extra fees, while those that go ahead without permission will be in breach of their mortgage arrangement.
Staying up to date with all the latest mortgage news will help you to secure a great deal on your loan. To find out more about the latest happenings in the world of mortgages and property, explore our blog today« Back to Latest Monthly News