2021
The world of mortgage strategy is always evolving, and the week of March 27 to 31 was no different. From new regulations to innovative products, the mortgage industry was abuzz with news and developments. Here are Mortgage Strategy’s top 10 stories from the week of March 27 to 31:
1. The Financial Conduct Authority (FCA) announced it will be introducing new rules to protect customers from potential mis-selling of mortgage products. The new rules will require lenders to provide customers with more information about the risks associated with their mortgage product and ensure that customers are aware of the potential consequences of taking out a mortgage.
2. The Bank of England announced that it would be keeping the base rate of interest at 0.1% for the foreseeable future. This means that mortgage rates are likely to remain low for some time, making it an attractive option for those looking to purchase a home.
3. A new report from the Council of Mortgage Lenders revealed that the number of first-time buyers in the UK had increased by 12% in the first quarter of 2021. This is a positive sign for the housing market, as more people are able to take advantage of low mortgage rates and get on the property ladder.
4. The government announced that it would be introducing a new scheme to help those struggling with their mortgage payments due to the pandemic. The scheme will provide a three-month payment holiday for those who have been affected by the pandemic, allowing them to get back on track with their payments.
5. A new survey revealed that the majority of borrowers are now opting for fixed-rate mortgages over variable-rate mortgages. This is likely due to the fact that fixed-rate mortgages provide more security and certainty in terms of monthly payments, which is attractive to many borrowers in the current economic climate.
6. The government also announced that it would be introducing a new scheme to help first-time buyers get onto the property ladder. The scheme will provide a 20% discount on the purchase price of a property, up to a maximum of £120,000, for those who meet certain criteria.
7. The FCA also announced that it would be introducing new rules to ensure that lenders are providing customers with accurate information about their mortgage products. The new rules will require lenders to provide customers with clear information about the risks associated with their mortgage product and ensure that customers are aware of the potential consequences of taking out a mortgage.
8. A new report from the Council of Mortgage Lenders revealed that buy-to-let mortgages had increased by 8% in the first quarter of 2021. This is likely due to the fact that landlords are taking advantage of low mortgage rates and an increase in demand for rental properties due to the pandemic.
9. The government also announced that it would be introducing a new scheme to help those struggling with their mortgage payments due to the pandemic. The scheme will provide a three-month payment holiday for those who have been affected by the pandemic, allowing them to get back on track with their payments.
10. Finally, new research revealed that almost half of borrowers are now opting for longer-term mortgages in order to reduce their monthly payments. This is likely due to the fact that longer-term mortgages provide more flexibility and can help borrowers manage their finances more effectively in the current economic climate.
These were Mortgage Strategy’s top 10 stories from 27 to 31 March 2021. From new regulations to innovative products, it was an exciting week in the mortgage industry and one that will have long-lasting implications for borrowers and lenders alike.