020 7538 0102
Lloyds, Barclays, Santander, NatWest, HSBC and TSB have all scrapped loans for borrowers with a deposit of 10% or less, while some are even restricting applicants from using money from parents or grandparents. It is believed to be the first time since records began that this has happened. Lenders are being swamped with mortgage applications from other types of buyers, such as older and wealthier people who are upgrading to a larger home in the country. Surging demand has left borrowers facing a 30-day wait to have mortgage applications approved.
Daily Express (14/09/2020)
The number of mortgage agreements has plunged to the lowest level in ten years, according to investment platform Hargreaves Lansdown. Between April and June, the value of mortgages agreed for the coming months halved to £34.3bn. Some £44.1bn was lent out - the lowest level since 2013.
Daily Mail (15/09/2020)
A new study from New London Architecture (NLA) sets out a post-pandemic vision of London housing: a series of mini-towns where all services and amenities – from shops and schools to restaurants, recreation and entertainment – will be no more than 15 minutes from anyone’s front door. “London has always been a city of villages, and those centres which can accommodate a mix of housing, workplaces and leisure will be the most resilient in a post-COVID London”, says Catherine Staniland, author of the report. A sense of what may be to come can be found in East London, at developments such as Landmark Pinnacle on the South Dock in Canary Wharf, where a one-bedroom apartment at one of the capital’s tallest residential towers can be had from £559,000. Elsewhere, in Stratford, loft apartments at Stone Studios between Victoria Park and the Queen Elizabeth Olympic Park, are available with prices ranging from £442,500 to £1.1m.
Evening Standard (10/09/2020)
Halifaxhas reported that pent-up demand and the stamp duty holiday have seen UK house prices reach a record high in August, with managing director Russell Galley stating: “A surge in market activity has driven up house prices through the post-lockdown summer period”. He noted however that “The macroeconomic picture in the UK should become clearer over the next few months as various Government support measures come to an end.” The price of the average UK house now stands at £245,747, with Andrew Burrell of Capital Economics noting: “Pent-up demand will soon be expended. A weak economy, cautious lenders and the end of the stamp duty cut will weigh on prices” .
The Daily Telegraph (07/09/2020) The Guardian (07/09/2020) City AM (07/09/2020)
Barclays has cut how much it will lend via mortgages to new customers and those already part way through the application process. Experts said lenders have become increasingly nervous about unemployment – fearing a sharp rise in redundancies and a fall in wages when the Government's furlough scheme comes to an end in October. As a result, Barclays has slashed how much money it will lend to a mortgage applicant as a multiple of their income. Buyers can now only get a mortgage 4.49 times their annual salary, down from 5.5 times. Meanwhile, HSBC has pulled its mortgages for first-time buyers with small deposits because it could not cope with demand. It was the only big lender to offer 10% deposit mortgages throughout the COVID-19 pandemic.
The Daily Telegraph (04/09/2020) The Times (04/09/2020)