This week's Top 10 Mortgage Strategies Articles:
This week's top articles feature HSBC joins Halifax and Leeds BS in January rate cut Land Registry staff will vote to strike ahead of stamp duty changes. Learn more about these developments and more below. 
Land Registry staff vote in favor of strike ahead of stamp duty changes
Thousands of land registration staff in England and Wales have voted in favor of a strike over the requirement to work three days a week, but the PCS union has raised concerns over reduced remote working, use of performance-related data and additional responsibilities without additional are listed. pay.
The industrial action could coincide with a surge in home purchases ahead of stamp duty changes in April, drawing criticism from union leaders who say the measures are arbitrary and discouraging. .
The Land Registry insists the changes are in line with government protocols and says services will continue during the strike, but a date for the action has not yet been confirmed.
HSBC joins Halifax and Leeds BS in January rate cut
From January 6, HSBC will reduce mortgage rates on a wide range of products, including mortgages and landlord loans with terms ranging from two to 10 years, and loan-to-value ratios of up to 95%. This follows similar rate reductions by Halifax and Leeds Building Society earlier this week.
Aimed to remain competitive, the move will benefit a diverse range of customers, including first-time buyers, movers and rental investors, and will boost activity in the housing market ahead of stamp duty at the start of the year and ahead. Changes that are expected to occur.
Vida Homeloans launches 97% LTV 3 and Easy range
Vida Homeloans offers 97% LTV homes designed to help renters, first-time buyers, and people with complex financial situations, such as bad credit or self-employment, secure a home with as little as a 3% down payment. We have introduced the “3 & Easy” series of loans. .
Offering loan terms of up to 45 years and fixed interest rates of 5 or 7 years, this product increases affordability and stability. Vida also increased procurement fees for intermediaries.
Tenant Bill of Rights moves to main reporting stage
The Tenants' Rights Bill, which will enter the reporting stage on January 14, takes measures such as banning no-fault evictions under Article 21, limiting rent increases to once a year, introducing decent housing standards, and creating a tenancy system. The aim is to thoroughly reform the rental market. -Focused Ombudsman Service. It would also give Congress more power to punish unscrupulous landlords and allow tenants to claim their pets.
The National Association of Homeowners and Landlords has wide bipartisan support but warns it could worsen the housing shortage. After the reporting stage, the bill will move on to third reading in the House of Commons and then to the Senate.
Housing prices may be out of reach of FTBs by 2025
First-time buyer activity recovered in 2024 due to improved affordability due to lower bank base rates and positive economic factors such as real profit growth and minimum wage increases. Yorkshire Building Society predicts that the number of first-time buyer mortgage transactions will increase by 13.8% to 330,000 this year compared to 2023.
However, due to stamp duty changes scheduled for April 1st, the exemption for homes under £425,000 will be reduced to £300,000, potentially triggering a housing rush in early 2025, especially in southern There is a possibility that housing prices will rise further. While the lower base rate has boosted confidence, YBS is warning buyers to plan with mortgage rates remaining at around 4%.
TSB adds discounted mortgages for renters and landlords
TSB introduced the 5&5 concessional home loan, allowing tenants to purchase rental homes with a 5% discount from landlords and a minimum deposit of 5% from buyers. Aimed to help renters struggling to save money due to high rents, especially first-time buyers, it complements TSB's 10% scheme, which requires no deposit for the deep discount.
With 31% of landlords planning to sell within two years, TSB highlights the potential savings for landlords through reduced fees and uninterrupted rental income.
Savills and Knight Frank disagree on the rate of house price growth in 2025
Savills expects UK house prices to rise 4% in 2025 due to lower mortgage rates and a return to commuting hotspots, but Knight Frank predicts economic challenges and rising borrowing costs As a result, growth is expected to slow by 2.5%.
The market is expected to grow 3.3% in 2024 as lower mortgage rates and income growth boost confidence, but before stamp duty changes expected in April will raise costs. It is expected that there will be a rush among first-time buyers and people moving.
Knight Frank warns that rising house prices are out of step with the economic downturn, with inflation and wage pressures complicating expectations for rate cuts.
Coventry Building Society completes £780m acquisition of Co-op Bank
Coventry Building Society has acquired Co-operative Bank for £780m, creating an integrated group with assets of £89bn, mortgage balances of £50.3bn and over 4.5m members and customers.
The cooperative bank will remain a subsidiary with its own banking license and will maintain its existing services and FSCS protection. The integration will occur in stages and there will be no immediate changes for customers or brokers.
Coventry chief executive Steve Hughes will temporarily lead the bank following the departure of Co-op Bank CEO Nick Slape, while Joe Kenrick will become chairman. The deal is aimed at stabilizing Co-op Bank following past financial turmoil.
Mortgage approvals fall in November: Bank of England
The Bank of England said there were 65,700 mortgage approvals for home purchases in November, down 2,400 from October but still above the 12-month average of 60,400.
The number of mortgage refinance approvals fell slightly to 31,200, and net mortgage borrowing fell by £1bn to £2.5bn. Despite this, annual growth in mortgage lending rose to 1.3%, with total lending increasing to £20.7bn. The effective interest rate for new home loans fell to 4.5%, the lowest level since April 2023.
Experts suggest market fluctuations reflect cautious consumer confidence, with activity expected to stabilize with the possibility of interest rate cuts in the new year.
Halifax updates application form for older working borrowers
Halifax has introduced a new customer working age form for mortgage applications where one or more borrowers will be over 70 years old by the end of the term.
The updated form clarifies that the required date is the date the customer signs the document. Lenders are advising brokers to use the latest version of the form to avoid delays in the application process.
