Welcome to our March Edition
Welcome to this edition of the Town & Country New Build Newsletter. This monthly update will have some highlights of the latest products available, details of current schemes, as well as the latest industry news.
The Mortgage Lender has launched its first range of Help to Buy mortgage products, available for borrowers in England, Wales and Scotland.
Available at up to 75% LTV the products are available on a two-year fixed rate starting at 3.64% and a five-year fixed rate starting at 4.30%.
Within the lender’s ‘Real Life 1’ to ‘Real Life 4’ categories the offerings come with a free valuation and a completion fee of £995, whereas the remaining ‘Real Life 5’ and ‘Real Life 6’ categories, which are aimed at borrowers with adverse credit histories, come with a free valuation and charge a completion fee of £1495.
Rates correct as of 20th February 2019*
494,108 completions have taken place using one or more Help to Buy schemes and more than 93 per cent took place outside of London, according to statistics from the Ministry of Housing, Communities and Local Government.
The data also shows that the Help to Buy equity loan scheme supported around 1,000 sales a week in 2018 and first-time buyers have now opened 1.4 million Help to Buy ISAs. In total 194,379 completions have taken place across the UK since the Help to Buy ISA launched in December 2015.
Residential property transactions totalled 101,170 in January, according to the latest data from HM Revenue and Customs. This is an increase of 1.3% year-on-year and also represents a rise of 0.8% from transactions in December.
HMRC described the transaction levels seen as “stable”, and noted that year-to-date residential transactions for 2018-19 have been “at similar levels to previous years”.
This level of activity is consistent with a steady market, neither crashing or booming, and therefore house prices should continue to rise slowly, roughly in line with wages, during the remainder of the year.
First-time buyer mortgage completions reached 370,000 in 2018, the highest level since 402,800 in 2006 according to data from UK Finance. This was an increase of 1.9% when compared with 2017. New lending also increased by 4.9% year-on-year standing at £62 billion.
There were 30,900 new first-time buyer mortgages completed in December 2018, 1.6% more than in the same month a year earlier. The £5.2bn of new lending in the month was 4% more year-on-year.
Housing minister Kit Malthouse has announced £6m of funding to boost the delivery of new affordable homes while the One Public Estate programme is also set to receive a cash injection.
The money will be delivered to the Community Led Homes Programme over two years. It is an initiative run by four charities that aim to provide local groups with the funding, training, and advice required to build high quality affordable homes and better communities.