Docklands News

Mortgage brokers have reported banks and building societies passing on higher interest rates to new borrowers, while keeping remortgage rates for existing customers the same. Loyal borrowers can currently benefit from interest rates up to 1.2 percentage points lower than those offered to new customers by the same lender. Lenders have been flooded with borrowers desperate to lock in new deals before further rate rises in the coming weeks. However, existing customers are being prioritised as banks already know their financial information and track record of paying back their loan, making applications easier to accept. Chris Sykes, of broker Private Finance, said: “There are longer wait times for mortgage applications and higher ‘fall-through' rates amongst borrowers as many rush to lock in a new rate. This has made it more expensive for lenders to bring in new business and makes it even more beneficial to retain existing clients." 

The Daily Telegraph (17/09/2022)   The Sunday Telegraph (18/09/2022)   The Sunday Times (18/09/2022)  

Tens of thousands of first-time buyers are expected to be locked out of the housing market after the Help to Buy scheme closes in October, experts have warned, leaving a “void” of support for entry-level purchasers just as the cost-of-living crisis worsens. Help to Buy officially ends on March 31 2023 – however, this is the deadline for all sales to complete. The deadline for first-time buyers to register is five months earlier, at 6pm on October 31. This means first-time buyers have six weeks to house hunt, reserve a home that is supported by the scheme and submit a Property Information Form. After the deadline, first-time buyers will have few options to get on the housing ladder without financial support from their parents.

The Daily Telegraph (19/09/2022)  

Bellway London has announced the handover of the first homes at its Beckton Parkside development in East London to their new owners. The milestone was marked by the completion of an apartment building at the development, in which 55 home owners received the keys to their apartments. Out of the 391 properties due to be built at Beckton Parkside, consisting of studio, one, two and three-bedroom apartments, a total of 200 are finished and occupied. Currently, the choices available at the development are studio, one, two and three-bedroom apartments within the Parkside Court and Redwood Court apartment buildings, with prices starting from £265,000. Further homes will be released for sale as building work progresses, while all work on site is due to be completed next year.

Building Design and Construction (12/09/2022)  

House prices in London are rising at the fastest rate in six years as buyers who left the city during the pandemic look to return to be closer to work. The average property price is now £554,718, according to Halifax, a rise of 8.8% in the year to August. Mortgage brokers and estate agents have attributed the steep rise to the growing number of people moving back to the city in a reversal of the ­pandemic-­induced exodus.

The Sunday Telegraph (11/09/2022)  

Sentiment among housebuilders has fallen, the FT reports, as concerns over the economic backdrop and rising interest rates continue to take their toll on house sales. 

Financial Times (10/09/2022)  

Nearly two-thirds of would-be first-time buyers have had to cut down their regular savings due to the cost of living crisis, according to research by Aldermore Bank. As the cost-of-living crisis takes its toll on incomes and savings, 72% of prospective first-time buyers say their attempts to purchase a property have been impacted. A third (32%) of would-be homeowners have put their property purchases on hold, anticipating delays of around 20 months. On average, prospective first-time buyers plan to save £43,500 for a deposit, according to the bank's first-time buyer index. Nearly two-thirds (64%) have had to scale back their regular savings, likely increasing the time it takes them to get on the property ladder. And while savings plans are being put on hold, mortgage rates are climbing, following a string of Bank of England base rate hikes. The average five-year fixed mortgage rate on offer for a borrower with a deposit as low as 5% was 4.49% at the end of August, according to Moneyfacts. Back in early February it was 3.35%. 

The Independent (10/09/2022)