Welcome to Spread the Word from Stratton Thorpe Mortgage Solutions. Our monthly round-up of all the latest news, updates and advice about mortgages and protection.
We hope you find the information interesting. If you would like to discuss anything in more detail, please get in touch, and we are happy to help.
MORTGAGE NEWS & UPDATES
Mortgage payments are still affordable
Deposit is often the major hurdle for most first-time buyers. "Despite the increase in house prices to new all-time highs, the typical mortgage payment is not high by historic standards compared to take-home pay, largely because mortgage rates remain close to all-time lows" said Robert Gardner, Nationwide's chief economist.
Annual house price growth accelerates above 13% in June 2021
With all UK regions recording a pickup in Q2 according to the Nationwide Building Society June Price index.
"Any slowing of price rises in the period of March to May because of the initial expected end of the stamp duty holiday has been short-lived. This is in part because of the extension of the holiday but also the more general optimism in the economy which has seen many transactions that were previously postponed come back online.
"[The] 95% LTV mortgage guarantee scheme... is giving continued support and confidence to borrowers and mortgage lenders, many of whom have re-introduced their own higher LTV lending to the market.” Source - Mortgage Strategy
House prices march upwards by 10.7% in June 2021
House prices in England and Wales grew by 10.7% this June 2021, shows the latest price index from e.surv. This brings the average house price to £336,247, with a monthly change of 0.8%. The £32,500 more that the average property costs in the 12 months to June means house prices have risen at the fastest rate since February 2005, e.surv points out, adding that home movers have moved into a market that was previously dominated by first-time buyers. Source - Mortgage Introducer
PROTECTION NEWS & UPDATES
Family Income Benefit
The world we live in has changed immeasurably over the last 12 months but if there is any positive to take away it is that the pandemic, and especially the furlough scheme, has opened many consumers eyes to the benefits of replacing income when the worst happens. It undoubtedly helped remove the oft cited objection that "it won't happen to me". In protecting against death, most people's first thought is 'Life Assurance' and the lump sum that can be provided to secure a family's future. But more often the bridesmaid than the bride, Family Income Benefit (FIB) is often a more cost-effective way of protecting a client's family in the event of their death or terminal illness by providing an ongoing income to help them meet their day to day expenditure. Source - Protection Guru Website
Ban on price walking in general insurance
The forthcoming ban on price walking in general insurance (Buildings & Contents Insurance) markets is good news for consumers and for any intermediary focused on providing real value to their customers.
The ban will level the playing field for the home insurance market. It will make it easier for mortgage brokers to offer customers competitive, but realistically priced, insurance products, carefully tailored to match customers' specific requirements.
It gives the best mortgage brokers a chance to prove their true worth by adding a new dimension to the already exemplary services they deliver. Source - Mortgage Solutions
Legal & General Launch Private Diagnostics Cover Option
Private Diagnostics from Legal & General is designed to help clients access fast-tracked specialist diagnostic support, for cancer, cardiac or neurological conditions. By helping clients with the initial diagnosis process and removing the need to rely on the NHS, where waiting lists for some tests and investigations may take weeks or months, they can get the answers they need quickly. Delays in obtaining a diagnosis can cause a lot of concern and distress, and in some cases may mean the difference between successfully treating the condition early enough or it progressing too far. Source - Protection Guru
