The latest data and analysis from Halifax has revealed this morning that, during October, average house prices across the UK topped £250k for the first time in history following the strongest growth since June 2016. The lender revealed that on a monthly basis, house prices in October were 0.3% higher than in September and in the latest quarter (August to October), house prices were 4.0% higher than in the preceding three months. House prices in October were 7.5% higher than in the same month a year earlier – the strongest growth in over four years.
The FCA has announced that lenders will extend the provision of mortgage payment deferrals of up to a maximum of six months in the light of the tightened Covid-19 restrictions announced by the Prime Minister over the weekend.
The Bank of England’s Monetary Policy Committee has voted unanimously to maintain Bank Rate at 0.1%, but say that a "further easing of monetary policy is warranted". The Committee agreed to increase the target stock of purchased UK government bonds by an additional £150 billion, taking the total stock of government bond purchases to £875 billion. The MPC noted the "rapid rise in rates of Covid infection" since its last meeting and expects that "Covid will weigh on near-term spending to a greater extent" than projected in the August Report, leading to a decline in GDP in Q4.
The FCA has set out new proposals to support mortgage borrowers affected by Covid-19 as a result of increasing restrictions announced in recent weeks. The FCA is proposing to extend the availability of payment deferrals to support borrowers who are experiencing payment difficulties because of coronavirus. Under the new rules, those who have not yet had a payment deferral will be eligible for two payment deferrals of up to six months in total. Those who currently have an initial payment deferral, or who have resumed repayments after an initial payment deferral, will be eligible for another payment deferral of up to three months.
Applying for a mortgage can be a complex and stressful process – especially now that Covid-19 has made the application process tougher and longer. What most mortgage applicants worry about are mortgage rates, whether they'll pass the affordability test and have enough of a deposit to secure the home they want. But did you know that there are other things you may need to consider, such as identity and anti-money-laundering checks? You wouldn't want to fall at the last hurdle, so iron out these details* before submitting your application.