The UK mortgage market is experiencing significant shifts, with lenders adjusting rates and products in response to market conditions. Notably, Santander has announced reductions across its mortgage range, while the Renters’ Rights Act has sparked a surge in evictions, raising concerns for tenants and landlords alike.
TL;DR: Santander is cutting mortgage rates, impacting both new and existing borrowers; nearly 20,000 tenants faced eviction before the Renters’ Rights Act took effect, highlighting risks for renters.
What are Santander’s latest mortgage rate changes?
Effective from 18 June, Santander is reducing rates on many fixed and tracker mortgage products for both residential and buy-to-let customers. While most products will see rate cuts, first-time buyer products at 85% loan-to-value (LTV) will experience increases. Additionally, Santander is introducing new home mover products, lowering product fees, and reintroducing selected first-time buyer products. The lender is also extending key application and completion deadlines by one month, which may provide more flexibility for borrowers.
How are house prices trending this June?
According to Rightmove, average asking prices for newly listed homes have fallen by 0.6% in June, bringing the average price to £376,191. This marks the largest decline for June in 14 years, as sellers adjust to a more competitive market and increasingly price-conscious buyers. This trend may indicate a cooling in the housing market, which could influence buyer sentiment and lending strategies moving forward.
What impact has the Renters’ Rights Act had on the mortgage market?
Research from COHO reveals that nearly 20,000 tenants were evicted in the month preceding the Renters’ Rights Act’s implementation. Approximately one in four tenants received eviction notices ahead of the ban on Section 21 “no-fault” evictions, suggesting that landlords may be accelerating evictions as they adapt to the new legal framework. This shift could lead to increased caution among landlords regarding risks associated with rent arrears and anti-social behaviour.
What this means for landlords and tenants
The recent changes in the mortgage market and the introduction of the Renters’ Rights Act have significant implications for both landlords and tenants. For landlords, the acceleration of evictions prior to the Act may indicate a need for more proactive management of rental properties to mitigate risks. Meanwhile, tenants may find themselves in a more precarious situation as landlords adjust their strategies in response to new regulations. The reduction in mortgage rates could also provide opportunities for landlords looking to refinance or expand their property portfolios. For current rates, check out our current mortgage rates.
Frequently asked questions
How will the changes in mortgage rates affect first-time buyers?
First-time buyers may face mixed outcomes; while most mortgage rates are being reduced, some products at 85% LTV are seeing increases. This could limit options for those with smaller deposits, making it essential for first-time buyers to explore various lenders and products.
What should landlords do in response to the Renters’ Rights Act?
Landlords should review their eviction policies and consider alternative strategies for managing tenant relationships, as the new regulations may require more careful handling of potential eviction situations. Staying informed about legal obligations and tenant rights will be important in navigating this changing market.