Catch up on Mortgage Strategy’s most popular stories this week. Skipton Building Society launches 100% LTV mortgage and Market Watch: Bank holiday? Or bank trouble?. Read more below:
Skipton Building Society launches 100% LTV mortgage
Skipton Building Society’s new 100% loan-to-value mortgage for renters has been welcomed by brokers, but some warn of the risk of negative equity. The Track Record Mortgage offers tenants with a good rental payment history the chance to borrow the total cost of a property on a five-year fixed rate of 5.49% for up to 35 years.
Purplebricks urgently seeks buyer as troubles mount
Online estate agent Purplebricks, which is facing financial difficulties, is seeking an urgent buyer. However, the values currently being discussed are significantly lower than its previous valuation of £1.35bn. Purplebricks’ market capitalization is now estimated at only £6.7m.
Leeds BS incorporates Netflix, Spotify subs into credit scores
Leeds Building Society has partnered with Experian to factor in regular payments, such as Netflix or Spotify subscriptions, into its mortgage applications. The mutual will consider the last 12 months of council tax payments and debit subscriptions for selected entertainment services towards its credit scoring.
Further rate rise ‘devastating’ for mortgage payments – Saltus
According to the latest Saltus Wealth Index report based on a survey of 1,000 people across the UK, nearly three out of four people are already feeling the pressure to keep up with their mortgage payments. If the Bank of England raises interest rates again this week, as widely expected, the impact could be devastating.
Accord Mortgages lowers income to borrow over 4.5 times salary
Accord Mortgages has reduced its minimum income requirement to £60,000 for borrowers who are seeking a mortgage of more than 4.49 times their salary, down from £70,000. This change applies to mortgages up to 90% loan-to-value, or 85% LTV for new build properties, and is only available through brokers at Yorkshire Building Society.
Landlords plan to sell properties at record rate
The rate of landlords planning to sell their rented properties has reached an all-time high, as per polling by research consultancy BVA-BDRC. In Q1 2023, 33% of private landlords in England and Wales stated their intention to reduce the number of properties they rent out.
Bank raises base rate to 4.5%
The Bank of England (BoE) has raised the base rate to 4.5%, marking the 12th consecutive interest rate increase. This is the highest level the base rate has been at since October 2008, shortly after the collapse of Lehman Brothers.
FCA issues warning on Consumer Duty deadline
The Financial Conduct Authority (FCA) has issued a warning to firms reminding them not to overlook the approaching 31st July deadline for the Consumer Duty. This regulation aims to enhance consumer protection and will be implemented in less than 90 days.
Leeds Building Society introduces new shared ownership products
Leeds Building Society has launched a new range of shared ownership mortgages with a three-year fixed term. The mortgages are available at 90% borrower share with an interest rate of 5.12% and at 95% borrower share with an interest rate of 5.40%. The new deals are being offered alongside the lender’s existing one and five-year shared ownership mortgages.
Market Watch: Bank holiday? Or bank trouble?
Andrew Montlake, MD at Coreco discusses the latest US bank failure should serve as a further warning to central banks of the risks of raising interest rates too far