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Latest figures from the Bank of England show there were 49,815 mortgage approvals for house purchase in May, slightly lower than 49,828 in April and below the previous six-month average of 51,856.
The twelve-month growth rate rose to 1.1% but the three-month annualised growth rate fell to 0.8%, from 1.0% in April. Net mortgage lending increased by £1.2bn in May, stronger than the April rise of £1.0bn but just below the previous six-month average of £1.3bn.

Nationwide is offering its existing mortgage customers £300 cashback to switch to another deal at the end of their mortgage. The society however says the move is not designed to lure people away from its 2.5%Base Mortgage Rate. The offer came into effect on June 11 as part of the society’s simplification of it. A spokeswoman for Nationwide, says: “We have offered similar loyalty schemes for existing customers in the past and this is just an extension of this.It is not anything to do with moving people away from our BMR it is just about rewarding loyal customers.”

Barclays is to reduce it’s rates on their Woolwich Mortgage Brand by up to 0.7% today. This follows the announcement earlier this month that Barclays is offering competitively-priced mortgages at 90% lending for customers buying a new Homes made by Bovis.
Closing the gap between 70% and 90% LTV mortgage rates. The deal for house hunters purchasing from Bovis Homes is fixed for two years at 4.99%.

The reductions this week include a reduction of 0.70% on a two year fixed rate mortgage (up to 80% LTV) from 5.29% to 4.59%, a reduction of 0.60% on a three year fixed rate (up to 80% LTV) from 5.49% to 4.89% and a cut of 0.40% for mortgages up to 85% LTV from 6.19% to 5.79%. All deals come have a £999 application fee. Two other fixed rate deals are being reduced at the 75% LTV tier and there will be a slight increase on the five year fixed for loans up to 70% LTV.

Andy Gray, head of mortgages for Barclays, said: “The improvement to the highest loan to value products will be welcomed by those with smaller deposits, but who still need the certainty of a fixed rate giving a measure of from future base rate increases for those who need it most.”
The tracker range will be maintained and currently includes deals such as base plus 2.19% (up to 70% LTV, £200k minimum loan) and base plus 2.69% (up to 75% LTV), giving consumers some of the strongest rates on the high street. The offset range for loans up to 70% LTV also continues to be maintained at its present rates and a new 75% LTV product at base plus 2.99% is added.

The volume of mortgages over a 1/2 million pounds increased by an astonishing 162% in May compared to the same month in 2009, according to Knight Frank Finance . The huge jump reflects the depressed nature of the UK housing market in spring 2009 and follows a 26% rise in £500,000 mortgages in the last quarter leading to May this year. Over the last three months the amount of new applications grew by nearly a 25% but the number of mortgage offers declined by around 39% in May compared to three months earlier.  

Simon Gammon, head of Knight Frank Finance says: “While the £500k and above mortgage market is undoubtedly much healthier than it was a year ago, there is growing evidence that lenders are being more discerning in terms of which applicants they will make offers to. Private banks are again back in force and are widening their range of products at the 80% and 85% level – with significant improvements in the level at which they are prepared to lend at.”

The CML said yesterday that the government should not regulate the UK’s mortgage market more thoroughly.

However they also said  that the characteristics of today’s mortgage market are unlikely to contribute to risky lending as there is too much at stake for lenders to lose.

CML director general Michael Coogan said: “We need to remember that in the UK it was not risky lending that caused the banking problems, it was banks’ inability to refinance their borrowings due to the shutdown of global financial markets.”

Nearly 50% of mortgage holders said they would be worried if their mortgage repayments increased as a consequence of base rate rises and 7% of mortgage holders say that they wouldn’t be able to meet their required repayments if interest rates go up. 75% of mortgage holders are anticipating interest rates to rise in the next twelve months and nearly 60% of mortgage holders are anticipating a rate rise of up to 2.5%. 15% are expecting rates to rise by more than 2.5%. Mortgage holders are more likely to expect a rate rise than the wider public, of whom 63% think the next twelve months will see rates increase.

Chris Taylor, CEO of MarketGuard commented, “This research underlines the extent of exposure the British public has to interest rate risk. It is clear that we face a major problem if rates start to move dramatically upwards in response to inflationary pressure. Nearly half of the UK’s mortgage holders would feel the squeeze heavily and there can be little doubt that defaults and repossessions would increase“There are millions of mortgage holders in the UK who are unable to find a suitable fixed rate deal, and so remain at the mercy of financial markets.”

Rates reduced on our Everyday Northern Rock semi-exclusives:
 NOW 3.19% Fixed until 01/10/2012*
 Overpay 20% per annum
 £1995 arrangement fee
 Purchase: £250 non-refundable app fee (charged as part of the val fee)
 ERC’s: 4% until 01/10/2012

NOW 3.97% Fixed until 01/10/2013*
 £995 arrangement fee
  Purchase: £250 non-refundable app fee (charged as part of the val fee)
 ERC’s: 4% until 01/10/2013

3.39% 2 Yr Tracker
 Max 80% LTV
 Available for purchase & remortgage
 BBR + 2.89% for 2 yr’s
 £499 arrangement fee
 ERC’s – 3% for 2 years (Overpay 10% pay)
 Free val & free legals for remortgages*
 Enhanced proc fee – Net 0.32%
 Product code: Purchase 67FLX, Remortgage 68FLX

strong Prime rates from 2.59%
 Products available up to 85% LTV
 Overpay 10% per annum on all products
 Fixed & stepped, capped & tracker products available
 Purchase only products with free valu & cashback options
 Remortgage only products with free val, free legals or cashback options

Yesterday thehousing minister insisted that the new coalition government would be “prepared to take the tough decisions needed” to tackle the Budget deficit and prevent rapid increases in interest rates – which he says would hurt both homeowners and those aspiring to enter the housing market Shapps says: “If we are really serious about supporting people’s aspirations for home ownership, the real prize is we must build more homes. ”

“For the first time incentives will create direct benefits for local communities, bringing jobs, investment and more homes for local people Rather than being told what to build and where, residents of villages, towns and cities will be able to develop their own vision for their place We’ll introduce Local Housing Trusts, enabling communities to create new housing for local people He says it is human nature to aspire to shelter and security - and for the many that means owning the roof over your own head. ”
He adds: “And I don’t consider it my job as Housing Minister to hold those aspirations back.
With a new government and despite the enormous financial difficulties the country faces, I want to state clearly today – the age of aspiration is back.”

Abbey and Alliance & Leicester are lowering the rates on their 3 year fixed rate mortgages by up to 0.04% Buyers and remortgage customers will have access through both ranges to the 75% LTV, three-year fixed rate products with rates now starting from 3.95% Phil Cliff, director of mortgages at Santander UK, says:“These competitive products come at a time when market trends suggest there is an increasing number of customers looking to move away from tracker deals and fix their mortgage rate. These latest changes to the Abbey for Intermediaries and A&L product ranges provide brokers and their clients with even better deals to help meet those needs.

The recovery of the UK property market has picked up following the election and the scrapping of home Information Packs (HIPs). Read the rest of this entry »