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☆ UK lenders step up mortgage price battle as inflation slows
▼ + stars: | 2023-11-15 | by ( Iain Withers | ) www.reuters.com time to read: +2 min

LONDON, Nov 15 (Reuters) - British lenders have accelerated price cuts on mortgages as competition intensifies, inflation slows and markets increase bets on future Bank of England (BoE) interest rate cuts. The latest inflation data on Wednesday showed price rises in Britain fell faster than expected in October, plunging to 4.6% from 6.7% the prior month, leading to further investor bets on BoE rate cuts next year. Reuters GraphicsThe average two-year fixed rate mortgage was priced at 6.19% as of Wednesday, the Moneyfacts data showed, down from a peak this year of 6.86% on 26 July. The country's inflation rate also remains high relative to most other developed economies. Lender cuts to fixed mortgage rates are also unlikely to be matched by variable rates that closely track the BoE rate.

Persons: BoE, John Charcol, Iain Withers, Sinead Cruise, Barbara Lewis Organizations: Bank of England, HSBC, Halifax, Virgin, Mortgage, Reuters, Wednesday, Thomson Locations: Britain

☆ Britain faces a mortgage crisis with renters and homeowners in the crossfire. Here's how to protect your money
▼ + stars: | 2023-08-02 | by ( Sophie Kiderlin | In | ) www.cnbc.com time to read: +5 min

"Demand is being stoked by a strong jobs market, record immigration and rising mortgage rates," Donnell said. Mortgage crisisBritain's mortgage crisis has been brewing for months. Nicholas Mendes, a technical mortgage manager at mortgage broker and advisor John Charcol, told CNBC Make It that there are pros and cons to both. Prospective buyers may feel "trapped" in the rental market, which could deter them from trying to buy, they told CNBC Make It. Higher mortgage rates are prompting some of those who still have mortgages to pay off to pass on those additional costs to renters, he said.

Persons: Oliver Knight, Knight Frank, Oscar Wong, Ed Monk, Richard Donnell, Zoopla, Donnell, Monk, Nicholas Mendes, John Charcol, Mendes, Urvish Patel, Barry Naisbitt Organizations: Fidelity International, CNBC, Mortgage, Bank of, Bank of England, National Institute of Economic, Social Research Locations: Britain

WHY HAVE UK MORTGAGE RATES SOARED? There are two main types of mortgage rate - variable and fixed. Fixed rate mortgages lock in a particular interest rate upfront, usually for a period of two to five years. Banks say they have to reflect these market moves to avoid pricing mortgages at a loss. Critics say banks could do much more, particularly as they have passed rate rises through to savers much more slowly than mortgage rates have risen.

Persons: BoE, Banks, Nicholas Mendes, John Charcol, Mendes, Jeremy Hunt, Hunt, Roger Gewolb, Sinead Cruise, Iain Withers, Catherine Evans Organizations: Soaring, Bank of, WHO, Finance, ASK, Labour, Fair Finance, Reuters, Thomson Locations: Britain, Bank of England, States

Charles Roe, director of mortgages for banking industry group UK Finance, told lawmakers that lenders were reintroducing mortgage products at lower prices. However, Ray Boulger, senior mortgage technical manager at broker John Charcol, said he was disappointed at the slow progress lenders were making. PRICE FALLS FORECASTAverage two-year and five-year fixed mortgage rates have fallen around 0.2 percentage points from their recent peak, but still remain above 6%, Moneyfacts data shows. "It was 2008 the last time mortgage rates were at 6%, there's a whole cadre of people who have never experienced this...and are very worried," said Joanna Elson, Chief Executive, The Money Advice Trust. The lender has started to reduce fixed mortgage rates for existing customers, while rates for new customers were under review, he added.

Average two-year and five-year fixed rates hit 6.65% and 6.51% on Thursday, according to Moneyfacts, the highest since 2008. FALLING PRICESA drop in gilt yields following Rishi Sunak's victory in the Conservative Party leadership race could potentially feed through to lower mortgage rates. But the number of loans available for first-time buyers remains at less than half those on offer before the mini-budget, according to Moneyfacts. NEW FIXESAs well as first-time buyers, brokers are dealing with thousands of people whose fixed rate mortgages are due to expire in the coming months. Redmond, who has had an offer accepted in east London, said it felt as though every turn of political event only made the fixed interest rate higher.

☆ UK mortgage rates are soaring: Here's what you need to know as a first-time buyer
▼ + stars: | 2022-10-10 | by ( Sophie Kiderlin | ) www.cnbc.com time to read: +4 min

Uncertainty around the U.K. housing and mortgage market has spread among first-time buyers. Unfortunately, a number of other factors are simultaneously making their lives harder: namely, inflation, interest rates and mortgage market disruption," he told CNBC Make It. However, what they have saved on SDLT [stamp duty] will likely be eaten up on higher mortgage rates pretty quickly," he said. So, what about mortgage rates? This could go up even further, Nicholas Mendes, a technical mortgage manager at mortgage broker and advisor John Charcol, believes.

☆ UK lenders pull mortgages at record rate as market chaos worsens
▼ + stars: | 2022-09-28 | by ( ) www.reuters.com time to read: +2 min

LONDON, Sept 28 (Reuters) - A record 935 mortgage products were pulled in Britain overnight, financial services provider Moneyfacts said on Wednesday, as deepening turmoil in financial markets pushed more lenders to temporarily withdraw products for new customers. The volatility comes after the new UK government announced huge tax cuts funded by borrowing, leading to a plunge in sterling and a surge in government bond yields as concerns mounted over its ability to fund the plan. read moreGovernment bond yields influence the cost lenders have to pay to borrow money. "We are seeing lenders across the market withdraw rates as headlines around interest rates soaring to 6% have spooked both lenders and borrowers," said Karen Noye, mortgage expert at wealth management firm Quilter. "Rates that were available one hour are gone the next which is making it a tricky time for buyers."

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