This week's Top 10 Mortgage Strategies Articles:
This week's top stories feature Paragon Bank's expansion of its buy-to-let mortgage range and interest rate cuts announced by HSBC and Gen H. Learn more about these developments and more below. 
HSBC and Generation H announce cross-range cuts
HSBC announced interest rate reductions across its home and buy-to-let products in December, including lower interest rates on fixed-term products at various loan-to-value (LTV) tiers and customized options for energy-efficient homes. It was announced that mortgage interest rates would be lowered from the 3rd.
The changes reflect market stability and are intended to benefit first-time buyers, movers and mortgage refinancing customers. Similarly, Gen H reduced its high LTV interest rates starting December 2 to support borrowers with small deposits. While these moves do not represent a 'price war', they are being hailed as a positive step towards more affordable mortgage options.
Paragon launches limited edition BTL rates starting at 4.74%
Paragon Bank has introduced a limited edition of five-year fixed rate buy-to-let home loan with loan-to-value (LTV) of 65%. Interest rates for a single self-contained, energy-efficient property are 4.74% or higher. Fees for properties with low efficiency or low fees.
The range also covers multi-occupation (HMO) and multi-unit block (MUB) housing, offering options for individual and limited company applications. Product manager James Harrison said these deals, which are available with a variety of fee structures, aim to support homeowners by offering greater choice and attractive rates to those who can provide a larger down payment. He emphasized that
UK house prices rebound sharply last month: Nationwide
According to the National House Price Index, UK house prices rose 3.7% in November compared to the same month last year, the highest growth rate in two years. Prices also rose 1.2% month-on-month, leaving them just 1% below their summer 2022 peak. Housing activity remains resilient, with mortgage approvals nearing pre-pandemic levels, even as high interest rates and soaring home prices dampen affordability.
Experts have suggested that upcoming stamp duty changes could temporarily boost trading, but rising costs of living could dampen demand. Confidence in the market is supported by stable mortgage rates and inflation, with further rate cuts expected in 2025.
Santander postpones residential affordability rate cut
Santander has postponed its house price reduction scheme, which was originally scheduled to start on December 4 through the online broker's calculator, citing a temporary delay as revisions are expected by the end of the week. There is. This follows interest rate cuts by other major financial institutions, including Barclays and HSBC, as competition intensifies as institutions aim to meet year-end targets. Industry experts say these cuts could slightly lower average mortgage rates, but are unlikely to affect the most competitive deals.
Charman will lead Ami in place of Sinclair.
The Association of Mortgage Intermediaries (AMI) has appointed Stephanie Sharman as its new chief executive officer, replacing Robert Sinclair, who will retire in February 2025 after 16 years with the company. Mr. Charman currently serves as Group Partnerships and Propositions Director for Sesame Bankhall Group, has 25 years of experience in mortgage distribution, and is expected to assume his new role on February 24, 2024. .
AMI Chairman Andrew Monlake praised Charman's passion for the industry and commitment to intermediary-led advice, while Sinclair hailed her as a capable leader who will take AMI to its next stage. Industry participants welcomed her appointment, highlighting her expertise and dedication to serving the needs of brokers and advisors.
Bailey expects four rate cuts next year as pressure eases on economy
Bank of England Governor Andrew Bailey expects inflation to fall to 2.3% from 11.1% in October 2022, followed by four 0.25% rate cuts in 2024 if easing continues. Speaking at the FT Global Board of Directors meeting, Mr Bailey noted that although services inflation and wage growth remain key concerns, inflation is falling faster than expected.
Borrowing costs currently stand at 4.75% after two rate cuts this year, and the Monetary Policy Committee is planning a “gradual” rate cut based on central forecasts. However, the OECD warns that fiscal stimulus and wage-driven pressures could keep inflation above target into 2025-2026.
Mortgage lender expands limited edition BTL product range
The mortgage lender has expanded its Vituret range with new fixed rate products. This includes two two-year fixed options featuring a 75% LTV, interest rates of 3.94% and 4.94%, and closing fees of 3.00% and 5.00%, respectively. Multiloan also introduces a 4.93% 5-year fixed rate product, available through selected distributors and specialist brokers.
Chief Commercial Officer Steve Griffiths highlighted that the additions are part of the company's efforts to offer landlords greater choice and meet growing demand for short-term fixed price products.
BBVA 'neutral' on potential sale of TSB
BBVA is still undecided whether to retain TSB if its €12 billion hostile takeover of Sabadell is successful, with CEO Onur Genk expressing “neutral” stance on TSB's future role in the integrated banking group I am doing it. The European Commission has approved the deal, but Spain's antitrust regulator is conducting a second stage review, which could delay a decision until next year.
The merger will create a major player in Spain's financial services sector. Meanwhile, TSB has appointed Sabadell Chief Operating Officer (COO) Marc Armengol as its next CEO, replacing Robin Block, who has led TSB since 2021 and has stepped down.
Leeds BS launches Income Plus for FTB
Leeds Building Society introduces Income Plus mortgages, allowing first home buyers with a minimum household income of £40,000 to earn up to 5.5 times their income, compared to 4.5 times their standard loan. I made it possible to rent up to.
This could increase average borrowing capacity from £290,000 to £356,000. Available at up to 95% loan-to-value (LTV), including new construction homes, these 5-year fixed rate products also incorporate green affordability benefits for energy efficient properties .
Mortgage loans aimed at addressing affordability challenges are available through intermediaries and include options with fees, cashback or no product fees.
Half of mortgage holders face increased payments: Bank of England
The Bank of England's latest Financial Stability Report highlights growing risks to the UK economy from geopolitical tensions and pressure on government debt, but mortgage arrears remain at historically low levels. points out.
Around half of UK mortgage holders face an increase in their payments as they refinance at higher interest rates, with some experiencing increases of more than £500 a month, while around 4. One in three is expected to benefit from lower interest rates.
Mortgage approvals are nearing pre-pandemic levels, home prices continue to rise and first-time buyer activity is at its highest rate since 2005. Lower interest rates could ease repayment burdens for many borrowers in the coming years.
