Day: May 19, 2025

As we settle into the new financial year, we should brace ourselves for a period of stability within the new-build market, rather than a considerable surge in activity. With fewer units anticipated, yet competition among developers hotter than ever, focus must shift towards how brokers can maximise opportunities with prospective customers. Typically, mortgage brokers convert one in every four new-build leads to reservation — but what then happens to the other three? By putting these customers to one side, we’re missing out on additional lead-generation opportunities, and it’s this pipeline that we need to make the most of. Nurturing prospective customers is vital By digging a little deeper into these customers’ initial enquiries, we can uncover their specific challenges and aspirations, providing them with tailored solutions that can help turn their homeownership dreams into a reality. Reasons for optimism The need to get more buyers into the new-build market comes against a backdrop of concerning figures, with 2024 marking the lowest level of new-home approvals in a decade, according to the latest Housing Pipeline Report from the Home Builders Federation, based on data from Glenigan. Furthermore, 17,000 affordable homes remain stalled due to existing Section 106 agreements, further impacting the pace of new construction, the Home Builders Federation found. It’s up to us to influence developers and lenders to innovate With several lenders now enabling customers to borrow beyond the standard 4.5 times income, all eyes continue to be on the high-LTV landscape, and we’ll wait with bated breath to see what comes from the Financial Conduct Authority’s review this summer. Despite these figures, there’s a sense of optimism fuelled by increased lender collaboration. We’re finally witnessing a genuine shift as lenders offer more innovative products (such as low-deposit solutions) and more flexible criteria, taking additional income streams into consideration and overlooking minor credit issues for straightforward cases. Crucial demographic The current generation of prospective first-time buyers remains a crucial demographic for us to tap into, with more renters than ever expressing a desire to buy. In fact, research suggests that a third (33%) of first-time buyers think now is a good time to purchase a property, almost double the number a year ago. By remaining proactive, we can turn more prospective customers into leads However, around two-thirds of aspiring buyers consider the biggest barriers to homeownership to be the affordability of monthly mortgage repayments and building a deposit, Building Societies Association analysis found. That’s where the value of a new-build broker comes into its own, debunking the myths around homeownership to empower more buyers onto the property ladder. Many hats A new-build broker wears many hats, acting as a go-between for the customer and the developer. We position ourselves as problem solvers, identifying the right financial pathways to secure the right deal for our customers’ circumstances, and we navigate the financial complexities that facilitate the purchase. Incentives are key to this, and it’s up to us to influence developers and lenders to innovate, giving our customers more choice than ever. Despite the figures, there’s a sense of optimism fuelled by increased lender collaboration With this in mind, we should encourage more developers and lenders to engage with the latest market innovation that supports aspiring first-time buyers, as recent product launches specifically geared to their needs and pain points have seen considerable uptake. This must be the year of buyer education, ensuring everyone is aware of the evolving range of solutions and the often-significant criteria changes that can be the key to transitioning from renting to homeownership. Nurturing prospective customers is absolutely vital to achieving this, alongside the understanding that every single customer you come across has the same end goal — albeit on different timelines. Focus must shift towards how brokers can maximise opportunities with prospective customers It’s essential to foster a continuous relationship with prospective customers who aren’t ready to move forward in their homebuying journey. Ongoing communication will help shift their mindset to realise that they can become homeowners sooner than they may think. By remaining proactive and continuously offering them relevant solutions that align with their specific needs, we can turn more prospective customers into leads, and get more people into the new-build market. Felicity Barnett is lender operations manager at Mortgage Advice Bureau This article featured in the May 2025 edition of Mortgage Strategy. If you would like to subscribe to the monthly print or digital magazine, please click here. The post Housing Watch: The year of buyer education appeared first on Mortgage Strategy.

Law firm and property finance expert Ward Hadaway has joined the Bridging & Development Lenders Association (BDLA) as an associate member. Ward Hadaway has offices in Leeds, Manchester, and Newcastle and provides legal services to bridging and development lenders, offering support across a range of transactions from acquisition funding, development finance, loan management, exit planning, recovery and enforcement. The BDLA currently has nearly 100 lender and associate members, with lender members collectively supporting a loan book exceeding £10.3bn. Commenting on Ward Hadaway’s membership BDLA chief executive Vic Jannels said: “It’s a pleasure to welcome Ward Hadaway as the latest associate member of the BDLA. It’s a well-established firm in property finance, with an understanding of the bridging sector’s unique requirements, and will be a strong addition to our growing network of professional partners. He added: “As our membership grows, so too does our influence in championing the interests of short-term property lenders and the professionals who support them.” The post Ward Hadaway joins BDLA as associate member appeared first on Mortgage Strategy.

HSBC has cut rates on its residential, buy-to-let (BTL) and international mortgage ranges. The lender says it now has the most rates under 4% since 2022. The two year fixed rate at 60% loan-to-value (LTV) has been lowered to 3.84% for remortgages and for premier customers the 60% LTV with a fee of £999 is 3.81%. The bank’s lowest purchase rate is 3.83% for premier customers and 3.86% for non-premier customers. This is on a two-year at 60% LTV with a fee of £999 and has been lowered by 0.05%. For premier customers the lowest remortgage rate is 3.81% and for non-premier customers is 3.84%. This is based on a two-year at 60% LTV with a fee of £999. The lowest switcher rate sits at 3.74% for two- and five-year rates at 60% LTV with a fee of £999 for premier customers. The equivalent for non-premier customers is 3.79%. In addition, BTL rates have been reduced by up to 0.25% and international mortgages have been cut by up to 0.09%. The lowest BTL rate is at 3.74%, based on a two-year at 60% LTV with a fee of £3,999 fee or 3.99%, based on a two-year at 60% LTV with a fee of £1,999. Meanwhile, the lowest international mortgage for premier customers is 4.23%, based on a two-year at 60% LTV and a fee of £999, while the equivalent mortgage for non-premier customers is 4.26%. Earlier this month, HSBC announced rate cuts of up to 0.25% on specific mortgages.  The post HSBC trims prices on resi, BTL and international mortgage rates appeared first on Mortgage Strategy.

Halifax has announced changes to its product range with effect from 20 May. The changes include, for remortgage products with £1,999 product fee, the rate will increase by 0.18% on two-year fixed rate 0-60% loan to value product; and a rate increase of 0.06% on two year fixed rate 0-75% loan to value product; and also a rate increase of 0.15% on five-year fixed rate 0–60% and 0–75% loan to value products To secure existing product codes, applications must be submitted in full by 8pm on 19 May. Earlier this month the Halifax HPI pointed to a stronger market. The post Halifax changes rates on remo products appeared first on Mortgage Strategy.

Guest night stays in short-term lets booked through online platforms such as Airbnb topped 90 million last year, data from the Office for National Statistics shows.   The government numbers office says rentals, for apartments or rooms, booked through sites such as Airbnb, Booking.com and Expedia Group, hit 90.1 million in 2024.  Across the UK, England hosted 70.3 million stays, or 78% of the total, Scotland hosted 11.4 million stays, 12.7%, Wales hosted 6.3 million stays, 6.9% and Northern Ireland played home to 2.2 million stays, 2.4%.  By local authority, Westminster totalled the highest number of guest nights with 3.9 million nights, followed by Cornwall with 3.4 million nights, Edinburgh with 3 million nights and the Highlands with 2.6 million nights.  The average number of nights stayed in Westminster and Cornwall was four days, compared to 3.1 days in Edinburgh and 2.9 days in the Highlands.  The numbers office points out: “Guest nights were not evenly distributed within areas.   “For instance, Hammersmith and Fulham had 899,610 guest nights in short-term lets in 2024, compared with 154,690 in neighbouring Richmond upon Thames.   “In Wales, which had 6,256,930 guest nights in 2024, 1,156,590 were in Gwynedd; next-door Ceredigion had 353,850.”  August was the most popular month for guest nights spent in the UK, notching up 12.8 million nights, 3.5 times higher than the lowest month, January with 3.7 million nights. The post Platform short-term stays top 90 million nights in 2024: ONS   appeared first on Mortgage Strategy.