Mortgage Market Update – 02/11/2023

The next Bank of England Monetary Policy Committee meeting is today (Thursday 3rd November) to set the base rate. A recent survey of 70 economist by Reuters found that 61 expected no move from the current level of 5.25% and expect the rate to be held for an extended period. Watch this space…

The price war by mortgage lenders continue and this week saw another round of rate cuts. The average 2 year residential fixed rate is now 6/34% compared to 6.85% at the start of August.

Accord by up to 0.40%
Barclays by up to 0.26%
Coventry by up to 0.23%
TMW by up to 0.50%
Virgin by up to 0.15%

Focus on: First Time Buyers

The value of First Time Buyer economy is set to reach a total of £74.1bn by 2025, which is 26% above the estimated lending £56.5bn for the whole of 2023.

In 2024 it is expected to be £65.3bn. Over a third of recent first time buyers stated that they needed more guidance and information on the additional cost of buying a house (valuations fees, product fees, moving costs & legal fees).

The sooner TORC24 can speak to your customers in the buying process, it allows us to discuss these additional cost and avoid any nasty surprises further down the line which can take the shine off the buying experience.

Spotlight on: Enhanced Lending Criteria

Many lenders now allow borrowers to access higher income multiples than the standard 4.5 times. Subject to meeting criteria & taking a 5 year fixed rate instead f a 2 year fixed rate you might be able to borrow up to 5.5 times. Using this enhancement a salary of £75,000 could potentially borrow £412,500 against £337,500. That extra £75,000 could come in very handy!

At TORC24 we will always look to maximise a customer’s borrowing potential to help them secure their dream home.