Old-fashioned and outdated mortgage application processes are continuing to create barriers for first-time buyers, according to research. Under MMR rules, individuals applying for a mortgage must provide proof of ID and address in the form of original documents and not printed online copies. However the majority of UK consumers (69%) receive paperless bank statements while 46% receive paperless credit card statements. The younger generation are most likely to opt in for paperless bank statements, with 75% of 18-24 year olds saying they receive digital versions of their bank statements, compared to 59% of those aged over 55 years old.
Despite average mortgage rates falling across the market, the gap between the 60% LTV and 95% LTV bands has expanded by 0.31% in just six months, according to Moneyfacts data. Average 60% LTV rates have continued to fall and now average 1.81%, down from 1.96% in April 2016 and 1.91% in October 2016. Conversely, average 95% LTV rates are beginning to rise, from 3.95% six months ago to 4.18% today, surpassing the low of 4.15% seen in April 2016.
Lenders report 42% fall in loans to landlords as tax changes begin to bite leaving young adults in a better position to buy a property, according to the latest data from mortgage lenders. The Council of Mortgage Lenders said lending in March was £21.4bn, down 19% on the year before, almost entirely due to landlords withdrawing from the market. A double whammy of tighter Bank of England lending rules, which have forced banks and building societies to insist on greater rental cover and higher deposits, plus new taxes on rental income, has made buy-to-let far less financially attractive. Lending peaked in March 2016, as landlords rushed through purchases to avoid a 3% hike in stamp duty. But since then, lending has gone into freefall.
With so much else fighting for our attention, it’s easy to put off thinking about retirement. Regardless of your target date, here are just three things you could end up regretting when the time finally comes to quit the daily commute.
The investment bond, unveiled by the Government in the Autumn Statement, is only available to buy online - and its rate is below the Consumer Price Index (CPI) rate of inflation at 2.3%. Savers can put between £100 and £3,000 into the deal and the 2.2% rate is fixed for three years. The bond will be on sale at nsandi.com for the next 12 months. Announcing the launch, the Treasury said the online-only availability of the bond reflects the changing nature of customer behaviour as more money is deposited online with NS&I than via any other individual sales channels.