Docklands News

Mortgage rates are now at their highest level in eight years, as the top deals being offered disappear within days of the Bank of England’s latest rate increase. The average five-year deal is now higher than 4% for the first time since October 2014, data shows. A typical two-year fixed mortgage also rose for the tenth month in a row to 3.95%. Meanwhile, the shelf-life of home loan products fell, with offers now typically pulled from the market after just 17 days. There are also fewer deals to choose from, with 4,407 mortgage products available at the start of this month, down 149 since the beginning of July. Eleanor Williams, of data analysts Moneyfacts, warned: “Those looking for a new mortgage have the shortest length of time we have ever recorded to try to secure their deal of choice.” It comes just days after the Bank of England raised its base rate by 0.5 percentage points - the biggest increase in 27 years - in a bid to control spiralling inflation. 

Daily Mirror (08/08/2022)  

Homeowners are overpaying their mortgages to reduce what they owe before their fixed-rate deals end, the Sunday Times reports, after the Bank of England increased the base rate of interest for the sixth month in a row last week. The Bank increased the rate by 0.5 percentage points to 1.75% in an effort to curb inflation. It was at a record low of 0.1% in November last year. The successive rises have led to surging mortgage rates, which have more than tripled since September. In the first six months of this year £10.4bn was overpaid on mortgages, according to the Bank of England. Santander, Britain's third-largest mortgage lender, said 250,000 customers had overpaid a total of £1bn in 2022 so far. 

The Sunday Times (07/08/2022)  

East London councillors rejected the application to extend 225 Marsh Wall, following advice from Tower Hamlets Council's planning committee that the height of the new building would be “detrimental to the townscape and Canary Wharf skyline”. The 49-storey tower, designed by Make Architects, is already under construction, but earlier this year developer DDU, a subsidiary of Scott Brownrigg, applied to increase its height by 22m up to 56 storeys. The council’s report on the decision added that the provision of affordable housing was “not sufficient to warrant a departure” from policies for managing height within a Tall Building Zone.

Property Week (28/07/2022)  

Property prices in the UK have hit an average of £271,209, according to data from Nationwide. Prices were up 11% year-on-year in July, exceeding the 10.7% annual growth recorded in June. The increase means values have risen for 12 consecutive months. Month-on-month, prices climbed 0.1% last month, with this the smallest level of growth in a year. The level of growth has fluctuated in different areas of the UK, however, with the quarterly change in price in the South West at 14.7%, compared to 6% in London. The capital has the highest average property price at £540,399, while Scotland has the lowest, £181,422. First-timer buyer mortgage completions remain around 5% above pre-pandemic levels, according to the Nationwide. Reflecting on the figures, Nationwide’s chief economist Robert Gardner said: “While there are tentative signs of a slowdown in activity, with a dip in the number of mortgage approvals for house purchases in June, this has yet to feed through to price growth".

BBC News (02/08/2022)   Daily Mail (02/08/2022)   The Daily Telegraph (02/08/2022)   The Guardian (02/08/2022)  

The amount of money lent on new mortgages fell by a third in June. Mortgage debt fell by 33.75% compared to May and now sits at £5.3bn, although it remains above pre-pandemic levels of £4.3bn, according to figures from the Bank of England. The data suggests that the cost of living crisis is dampening the housing market. Increasing inflation is also driving up the interest charged on mortgages. The 'effective' interest rate – the actual interest rate paid – on new mortgages also increased by 20 basis points to 2.15% in June. The rate on existing mortgages ticked up 4 basis points to 2.11% as the Bank of England raised interest rates. There are also signs of a slowdown in the housing market with approvals for house purchases, down to 63,700 in June, from 65,700 in May, below the 12-month pre-pandemic average up to February 2020 of 66,700. The figures reflect house purchases which were agreed several months ago, which suggests that appetite for new mortgages could continue to decrease. 

Daily Mail (29/07/2022)   Evening Standard (29/07/2022)   The Guardian (29/07/2022)   The Times (29/07/2022)  

A quarter of grandparents have assisted – or are planning to help – their grandchildren become first-time buyers, a new study suggests. The proportion of grandparents helping out financially has risen by a third since 2016 when the research was last carried out by insurer Aviva. The average amount given by grandparents has also increased to around £31,000 – 25% higher than six years ago. Grandparents who help their grandchildren to buy a property typically do so using their own savings or by releasing value from their own home, Aviva says. 

Daily Mail (03/08/2022)