2021
Mortgage Strategy’s top 10 stories of the week from 10 April to 14 April 2021 cover a range of topics from the latest news on mortgage rates to the impact of the pandemic on the housing market. Here are the top 10 stories of the week:
1. Mortgage Rates Remain Low Despite Economic Uptick: Mortgage rates remain low despite an economic uptick, with the average 30-year fixed rate mortgage remaining at 2.81%. This is good news for borrowers who are looking to take advantage of the low rates.
2. UK House Prices Continue to Rise: UK house prices continue to rise despite the pandemic, with the average house price increasing by 3.7% in March 2021. This is the highest rate of growth since October 2020 and is being attributed to pent-up demand from buyers.
3. Mortgage Lenders Offer Flexible Options to Borrowers: Mortgage lenders are offering more flexible options to borrowers in order to help them manage their finances during the pandemic. These options include payment holidays, interest-only mortgages, and loan modifications.
4. FCA Proposes Changes to Mortgage Market: The Financial Conduct Authority (FCA) has proposed changes to the mortgage market in order to make it easier for borrowers to access mortgages and reduce the risk of mis-selling. The changes include introducing a new affordability assessment and introducing a new “mortgage passport” system.
5. Mortgage Brokers See Increase in Business: Mortgage brokers have seen an increase in business since the start of the pandemic, as more people are turning to them for advice and guidance on their mortgage options. This is due to the fact that brokers can provide more tailored advice than banks and other lenders.
6. Government Announces New Help-to-Buy Scheme: The government has announced a new Help-to-Buy scheme which will help first-time buyers purchase a property with a 5% deposit. This scheme is designed to help those who are struggling to save for a deposit due to the economic impact of the pandemic.
7. Bank of England Keeps Interest Rates Low: The Bank of England has kept interest rates at 0.1%, which is good news for borrowers as it means that mortgage rates are likely to remain low.
8. Government Announces Extension of Stamp Duty Holiday: The government has announced an extension of the stamp duty holiday until June 2021, meaning that buyers will not have to pay stamp duty on properties up to £500,000 until then. This is good news for those looking to purchase a property during this time.
9. Buy-to-Let Market Remains Resilient: The buy-to-let market has remained resilient during the pandemic, with landlords continuing to benefit from strong rental demand and low mortgage rates.
10. Mortgage Fraud Rises During Pandemic: Mortgage fraud has risen during the pandemic, with criminals taking advantage of people’s financial difficulties and lack of knowledge about mortgages. It is important for borrowers to be aware of potential scams and only use reputable lenders when applying for a mortgage.
These are just some of the top stories from Mortgage Strategy’s top 10 stories of the week from 10 April to 14 April 2021. It is clear that the housing market continues to be affected by the pandemic, with lenders offering more flexible options and government schemes designed to help buyers purchase a property. It is also important for borrowers to be aware of potential scams and only use reputable lenders when applying for a mortgage.