Well done to everyone for successfully making it through January - often considered the toughest month of year! After turbulence in the property and mortgage market at the backend of 2022, we’re hopeful for more settled and promising times for homeowners in 2023. Read on for more details...
MORTGAGE NEWS & UPDATES
Property prices tick up in January: Rightmove
There was a 0.9% rise in house prices on a monthly basis in January, says Rightmove.
This comes off the back of two monthly price drops in a row and gives an annual rise of 6.3%, leaving the average property asking price at the start of 2023 at £362,438.
Additionally, Rightmove reports the number of would-be buyers contacting agents being up 4% on January 2019, while the number of people looking to
buy contacting estate agents was 55% higher than the two weeks before Christmas 2022, making for the biggest ‘New Year bounce’ for this metric since 2016.
And 5 January, the data adds, was the third-busiest day on record for people booking valuations for their homes.
SOURCE - MORTGAGE STRATEGY
Is the clock ticking and your interest-only mortgage ending soon?
Worried how you’re going to repay the loan? When taking out an interest-only mortgage all those years ago, the date for final and full loan repayment probably seemed a long way off. But now that day is fast approaching, you may have £1,000s to pay in a lump sum. There’s no need to panic. We’ll help you explore your options.
Rents jump 12% to record £71.5bn total in 2022: Hamptons
The amount private tenants spent on rent jumped by 11.8% to a record £71.5bn in England and Wales in 2022, according to data from Hamptons, which also shows that rented homes have grown fastest in the UK’s most deprived areas over the last decade.
“A rise in the number of privately rented households combined with record-breaking rental growth has pushed the rent bill up from £63.9bn in 2021 and £42.8bn back in 2012,” says the estate agent, which drew its data from last year’s census.
It shows that the number of households renting privately has grown by 1.12m over the last decade, with the group adding, that “54% of the decade’s growth came from rising rents, while 46% came from the increase in privately rented households”.
The agent points out that this record amount of rent roughly equates to the Office for Budget Responsibility’s revenue forecast for corporation tax between 2022 and 2023 of £73.9bn.
It also says that from 2011 to 2021 the number of households renting privately increased by 151,800 in the 10% most deprived areas of England and Wales, compared to an 80,100 rise in the 10% least deprived areas.
This means that 23% of households in the poorest 10% of the country rent privately, up from 18% a decade ago, well above the 13% that rent in the most affluent areas.
SOURCE - MORTGAGE STRATEGY
Two-thirds of landlords plan 10% rent rises this year: Aldermore
Almost two out of three landlords, or 62%, say they are likely to raise rents by at least 10% over the next 12 months, data from Aldermore shows.
A poll by the challenger bank adds that 49% of buy-to-let owners feel that “it’s harder being a landlord now compared to a year ago”, faced with inflation at 10.7%, interest rates at 3.5% and a volatile housing market.
Its study finds that although a sizeable majority of BTL owners are considering raising rents they are “conflicted about passing on costs in an already difficult climate”, with 64% worried that tenants may not be able to pay their rent in the near future because of the rising cost-of-living.
The poll says that 48% of BTL owners were unable to expand their property portfolio over the last year, while 42% will consider downsizing their holdings if market conditions continue.
SOURCE - MORTGAGE STRATEGY
IS your current mortgage deal ending before 1st August 2023?
It's time to start thinking about remortgaging. It's worth shopping around for a new rate as you can secure a deal up to six months in advance. Stratton Thorpe Mortgage Solutions provide:
· Free no-obligation initial consultations
· Flexible appointments at a time & location to suit you
· Simple, hassle-free service - we take care of everything to ensure a smooth transition to your new mortgage
If you have longer to run on your mortgage, switching rates may still be worth considering. This may involve paying exit fees or early repayment charges on your outstanding loan. However, if you save significantly by switching, these extra charges could be worth considering.
First-time buyers will be ‘active’ this year despite headwinds
Despite obvious headwinds, first-time buyers are still motivated, with research this week from Yorkshire Building Society finding that first-time buyers made up the largest segment of the market in 2022 at 53 per cent. This is up from 50 per cent in 2021 and 41 per cent in 2020.
Brokers for the most part were cautiously optimistic about first-time buyers, with many saying they expect them to continue pursuing their purchase plans. Brokers either thought numbers would stay stable or only dip slightly.
Benjamin Blyth, director at Houz Mortgages, said that while many home movers had put their plans on hold after the market turbulence in the second half of last year “first-time buyers do not seem deterred”.
He continued: “I predict they’ll continue to be active in 2023. They have been planning and saving for years for this goal, and are the most focused to see it through, so I don’t expect numbers to fall.
“Buyers will know their mortgage payment would be higher than house sharing or living at home but equally will know the payments are likely to be lower than privately renting. It’s also the biggest investment in the future and it’s worth making.”
SOURCE - MORTGAGE SOLUTIONS
Will mortgage rates drop further?
Today’s report also revealed the availability of mortgage products had also improved significantly this month. Back in the chaos of October there were 2,258 deals on the market, but this has now increased to 3,643.
Moneyfacts said the month-on-month figures had become more stable, which was positive news.
With things looking more settled, does this mean prices could come down further for borrowers as 2023 progresses?
Springall said: “The cost-of-living crisis and inflated interest rates over recent months may well impact borrowers’ intentions of getting a new deal.
“However, it is anticipated that fixed interest rates will fall further in the months to come to entice new business.”
SOURCE - WHAT MORTGAGE
CLIENT FEEDBACK
Thank you to all our fabulous clients for choosing Stratton Thorpe Mortgage Solutions. We would love to hear your feedback if you haven’t already given us a review. We’re making it quick and simple to share your experiences
Feedback from customers helps others feel confident about choosing a mortgage broker. Your comments also allow us to continue providing a customer-focused service. Thank you ♥️
