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GROWTH CONTINUES IN UK MORTGAGE MARKET, INCLUDING BUY TO LET

Mortgage market growth in the UK is continuing with the number of first time buyer mortgages completed in July up by 5.8% compared to the same month in 2018, the latest industry figures show.
The data from UK Finance also shows that the number of home mover mortgages were up by 1.4% and buy to let mortgages are also growing, up by 5.5% year on year after several years of declines following tax changes.
There were 20,760 new remortgages with additional borrowing in July 2019, down 7.1% year on year with the average additional amount borrowed at £55,500. There were 20,380 new pound for pound remortgages, down 12.9%. UK Finance says this has been driven in part by a fall in the number of fixed rate mortgages coming to an end and the growing popularity of product transfers.
There were 5,800 new buy to let home purchase mortgages completed and 15,100 remortgages in the buy to let sector, up 2% compared to the same month in 2018.
‘It appears that no matter what happens in Westminster, and who can predict what might happen next, that people are still moving or managing to get on the housing ladder!

UK RENTS HIT AN ALL-TIME HIGH AS PAYMENTS RISE IN ALL REGIONS

The average UK rent hit an all-time high of £970 last month, according to the latest HomeLet Rental Index.
The data shows that there was an increase in rental values between August 2018 and August 2019 across all 12 regions monitored.
This time last year, the average rent across the UK was 2.4% lower - equivalent to £23. The national figure excluding London for August was £802, up by 2% (£16) on 2018.
Rent in the capital were also up on last year, hitting an average of £1,689 - up by 3.5% (equivalent to £57) when compared to August 2018.
Martin Totty, HomeLet's chief executive, says the private rented sector has been 'resilient' in contrast to a 'subdued' sales market.
"In times of uncertainty people tend to defer major purchases - opting to wait for the turbulent times to pass - and there is nothing more 'major' than buying property."
Totty says that ongoing Brexit uncertainty means more people are choosing to rent rather than risk entering the property market at the wrong point in the cycle.

INVESTORS CONTINUE TO BENEFIT FROM FALLING BUY-TO-LET MORTGAGE RATES

Buy-to-let (BTL) mortgage costs have continued to fall since the second quarter of 2019, according to Mortgage Brain analysis.

The cost of a 60% loan-to-value (LTV) two-year fixed buy-to-let mortgage is now 1.9% lower than it was three months ago, equivalent to an annual saving of £144 on a £150,000 mortgage.

During the same period, the cost of a 70% LTV three-year fixed BTL mortgage has dropped by 1.1%. This equates to a yearly saving of £90 for borrowers with a £150,000 mortgage.

Investors looking to fix their BTL deals for longer can also benefit from some significant savings. An 80% LTV five-year fixed BTL mortgage now costs 3.5% lower than 12 months ago, representing an annual saving of £324 for borrowers.

Mortgage Brain says that the sheer number of products now on the market is driving down costs, with 3,859 BTL products available from mainstream lenders - a rise of 11% compared to a year ago.

The analysis reveals, however, that on average the cost of a buy-to-let mortgage is still higher than a mainstream residential product. It gives the example of an 80% LTV five-year fixed product costing over 16% more for buy-to-let investors.

The difference in costs for mainstream residential and buy-to-let purchasers of tracker mortgages is less, though, closer to 5% for a 70% LTV two-year product.

"Overall the message for the BTL market is positive; especially for investors looking to fix for a longer term,"

"The cost of BTL mortgages continue to reach historic lows, with the market remaining competitive given the number of BTL mortgages currently on the market." 

 however, that the market is 'clouded' by a combination of political uncertainty, the looming Brexit deadline and a weakening economic forecast.

"The need therefore for specialist advice from a broker is more important than ever, so landlords are confident they are getting a mortgage that best suits their needs,"