Activity is high and criteria is changing!

A number of lenders have launched ten year fixed rates!  One even below 3% (up to 60% of the property value).  This is a bold move by the lenders but attractive if you know your movements are going to be minimal over the next ten years.   However, the expectation that the Bank of England base rate may stay at its historic low for some while longer yet might encourage more people to consider a variable or tracker type mortgage rate over a long term fixed rate.  It's a difficult decision to make.

According to the Halifax, more borrowers purchased their first home last year than in any year since 2007.  Some 326,500 first timers purchased a home in 2014, up 22% from 2013.  The lender also reported that first time buyers accounted for 46% of all mortgaged house purchases last year.

Halifax House Price Index suggested that house prices rose at their slowest pace for 11 months in the three months to December.  The average house price hit £188,858 last month, representing 7.8% growth from £175,193 in December 2013.  On a monthly basis, prices grew 0.9 per cent from £187,197 in November and the lender says it expects house prices to grow between 3% and 5% in the next year.

Metro Bank have launched in to the Buy to Let portfolio arena.  As well as looking at individual properties to let out, the lender will now consider funding up to 25 properties with a maximum loan of £5m.  Terms apply but for this type of investor, competitive, long term and flexible funding can be a scarce resource and therefore this is a welcome addition to funding options.

And finally, good news!  Charter Court Financial Services, who currently own mortgage specialist lender Precise Mortgages, has been granted a banking license.  The new bank, which will be called Charter Savings Bank will launch in the first half of 2015 and will be a welcome new addition in the sector.