First-time buyer mortgage rates hit hardest following Brexit

[shaunbhoy]

Perhaps the time for the baby boomers to jump off your ill-gotten gravy train?

What is "ill-gotten" about working all of your life, paying off your mortgage, and now enjoying the fruits of your labours?
Sounds a bit like sour grapes from the "entitled" generation.

[blackeye]

Economics 101: Reduction of cheap money = fall in prices.

Perhaps the time for the baby boomers to jump off your ill-gotten gravy train?

[DimPrawn]

US 10yr on a tear today. Higher borrowing costs coming soon...

Nah, just stick the base rate to -5% and drop a million quid into the account of anyone living off the state, sorted.

[jamesbrown]

US 10yr on a tear today. Higher borrowing costs coming soon...

[bingobob777]

Ah - cheers Eek

This is a little bit far away for the majority of lenders although Halifax have a range of options where completion is the 30th June 17.

Thanks Martin, will be in touch

[Martin@AS Financial]

He's not talking about having six months out more getting a mortgage now to start 6 months hence i.e. A mortgage with a Starting date of 30th June 2017.

Ah - cheers Eek

This is a little bit far away for the majority of lenders although Halifax have a range of options where completion is the 30th June 17.

[eek]

I would say that this will depend on the following:

- When was the break
- What was the reason for the break
- How long have you been in the industry
- Are you back in contract now
- How long is left on your contract
- How much is your property worth and what is the outstanding mortgage

Remeber, as a contractor you are fortunate in that you get two attempts (contracted day rate or ltd co accs) to get a mortgage when proving affordability.

He's not talking about having six months out more getting a mortgage now to start 6 months hence i.e. A mortgage with a Starting date of 30th June 2017.

[Martin@AS Financial]

Question for the mortgage brokers, are any of the companies that deal with contractors willing to provide an offer 6 months out?

Current deal ends 31/05/17 and given what's happening in America the rates here certainly aren't going to get any lower?

Also curious if any brokers offer a remortgage service without a hefty fee?

I would say that this will depend on the following:

- When was the break
- What was the reason for the break
- How long have you been in the industry
- Are you back in contract now
- How long is left on your contract
- How much is your property worth and what is the outstanding mortgage

Remeber, as a contractor you are fortunate in that you get two attempts (contracted day rate or ltd co accs) to get a mortgage when proving affordability.

[bingobob777]

Question for the mortgage brokers, are any of the companies that deal with contractors willing to provide an offer 6 months out?

Current deal ends 31/05/17 and given what's happening in America the rates here certainly aren't going to get any lower?

Also curious if any brokers offer a remortgage service without a hefty fee?

[kaiser78]

Another excuse to put up the cost of products and blame it on Brexit by the looks of it...(imho).

[GB9]

Interesting report on home ownership commissioned by Labour. Supply and demand broadly equal for last 12 years. It didn't mention the million homes bought under Labour with BTL mortgages. If you removed those then home ownership would have been steady in percentage terms.

[d000hg]

Poor millennials

[Flashman]

Mortgage costs at record low, say lenders - BBC News

Mortgages are now more affordable than they have ever been, according to the Council of Mortgage Lenders.....


.....First-time buyers are spending 17.8% of their income servicing their mortgages, compared with 24.7% in November 2007, a recent high.

Damn Brexit

[jamesbrown]

This is only going to accelerate. Where the US (10yr) bond yield moves, global credit eventually follows. Expect money to become gradually "more expensive" at last, particularly risky money The sooner, the better.

[Martin@AS Financial]

Taken from Mortgage Solutions:

The interest rate gap between small and large deposit mortgages has risen to a year-long high.

The average interest rate gap between high and low deposit mortgages hit a year-long high in September, according to a report.

The latest AmTrust Moneyfacts LTV tracker found that during the three months since the EU referendum those with large deposits to put down on their homes have enjoyed greater reductions in the cost of their borrowing compared to first-time buyers with modest deposits.

Following the Bank of England’s decision to lower the Bank Base Rate to 0.25% in August, mortgage rates fell across the board. However, the average cost of a high loan-to-value loan is falling at a much slower pace; the 0.05 percentage point decline for a 95% LTV mortgage in the last three months is just a third of the 0.15 percentage point drop for 75% LTV mortgages.

The gap in rates between the high and low (95/75%) class of LTV borrowers in September grew to 2.24 percentage points – the widest it’s been for almost a year (November 2015).

Product numbers on the up

The same picture is apparent when it comes to product choice. The number of overall mortgage products available on the market has risen, but first-time buyer choice has stagnated. There were 747 mortgages at 75% LTV available in October, the highest number since November 2015 (822). This is an increase of 8% from 689 in June.

However, between August to October an average of 239 95% LTV mortgages were available, down from an average of 247 in the three months leading up to the referendum – a decline of 3% in consumer choice. According to AmTrust International, this is a further sign the market is shifting further and further away from the first-time buyer.

Simon Crone, commercial director, said: “The drop in the price of mortgages is a welcome development for borrowers but the worry is the EU vote has led to a market distortion at the expense of first-time buyers with small deposits. The early signs are that borrowers with small deposits may not be benefiting as much because of less competition as lenders reassess their risk appetite and rely upon those with larger deposits instead.

“It would be a great shame if the positive steps taken by the industry and the government to improve lending to first-time buyers, after a calamitous collapse in the wake of the financial crisis, was undone over the months ahead. The next few months will be a key period as lenders decide on their risk strategies in this sector and the Help-to-Buy Mortgage Guarantee Scheme comes to an end.”