blog mortgage118

Author: David Sampson

  • London House Prices Decline Amidst Stagnation Elsewhere

    London House Prices Decline Amidst Stagnation Elsewhere

    Recent analysis reveals that London is the only UK region experiencing a decline in house prices, with forecasts indicating a potential drop of nearly £5,000 by the end of 2026. This trend highlights a stark contrast to other regions, where house prices have generally remained stable or increased modestly.

    TL;DR: London house prices are projected to fall by £4,766 by December 2026, contrasting with growth in other regions; this impacts homeowners and investors in the capital.

    Why Are London House Prices Falling?

    House Buyer Bureau’s analysis shows that London has recorded an average monthly decline of -0.2% over the past year, making it unique among UK regions. In contrast, the North East has seen the highest growth at 0.8% per month. Other areas like Yorkshire and the Humber, and the North West, have also performed better than London, with monthly increases of 0.6% and 0.5%, respectively.

    What Does This Mean for Homeowners?

    If the current trend continues, the average house price in London is expected to decrease from £552,655 to £547,889 by December 2026. This decline would mark a total loss of nearly £21,000 since the peak of £568,801 in July 2025. Homeowners in London should be prepared for potential challenges in selling their properties or refinancing existing mortgages, as falling values may impact equity and borrowing capacity.

    How Are Investors Affected?

    For property investors, the stagnation in London’s house prices may signal a shift in strategy. With the capital’s market underperforming compared to other regions, investors might consider diversifying into areas with stronger growth rates, such as the North East or Yorkshire and the Humber. Understanding these dynamics is important for making informed investment decisions.

    What This Means for Borrowers and Brokers

    Borrowers looking to secure mortgages in London may face tighter lending conditions as property values decline. Brokers should advise clients on the implications of falling house prices, particularly regarding loan-to-value ratios and potential refinancing options. Staying updated on current mortgage rates will also be essential for navigating this changing market.

    Frequently asked questions

    Will London house prices continue to fall?

    Current forecasts suggest that London house prices may continue to decline if market conditions do not improve, with a potential drop of £4,766 by the end of 2026.

    How does this affect my mortgage options?

    Falling house prices can impact your equity and loan-to-value ratio, which may lead to stricter lending criteria. It’s important to consult with a mortgage broker to explore your options.

  • Getting a Mortgage on Timber-Built Properties: What You Need to Know

    Getting a Mortgage on Timber-Built Properties: What You Need to Know

    Securing a mortgage on a timber-built property can be challenging, as many lenders view such constructions as non-standard. Understanding the implications of timber construction is essential for potential buyers and investors.

    TL;DR: Mortgages for fully timber-built properties are possible but often limited; borrowers may face higher deposit requirements and need to seek specialist lenders.

    Can You Get a Mortgage on Timber-Built Properties?

    Yes, it is possible to obtain a mortgage on a timber-built property, but restrictions apply based on the construction type. Fully timber properties, like log cabins, are generally more difficult to finance. In contrast, properties made from Swedish timber or chalet-style kit homes fall under the category of ‘non-standard construction,’ which lenders typically approach with caution.

    What Factors Do Lenders Consider?

    Lenders evaluate several key factors when assessing timber-built properties for mortgages:

    • Fire Risk: Timber structures may pose a higher fire risk, which is a significant concern for lenders.
    • Durability & Lifespan: The longevity and maintenance needs of timber constructions can influence lender decisions.
    • Resale Value: Properties that are harder to sell in the event of repossession may deter lenders.
    • Maintenance Requirements: Higher maintenance costs can impact the overall financial viability of the property.

    What This Means for Borrowers and Investors

    For borrowers interested in timber-built properties, it is important to be prepared for a potentially lengthy mortgage process. High street lenders may not offer standard rates for these types of properties, often requiring a larger deposit and a more in-depth evaluation from a surveyor. Building societies and specialist lenders may provide more flexible options, but borrowers should be aware that their broker’s panel of lenders could be limited.

    Frequently Asked Questions

    What types of timber constructions are more likely to get approved for a mortgage?

    Properties like Swedish timber homes or chalet-style constructions may be more acceptable to lenders than fully timber properties, such as log cabins.

    How can I improve my chances of getting a mortgage on a timber property?

    Consider obtaining a comprehensive surveyor’s report and working with a broker who specializes in non-standard construction to explore all available lending options.

  • Key Mortgage Market Updates: Rate Hikes and New Lending Options

    Key Mortgage Market Updates: Rate Hikes and New Lending Options

    The UK mortgage market is experiencing significant shifts as major lenders adjust their rates and new products are introduced. This comes in the wake of regulatory changes aimed at facilitating remortgaging, impacting borrowers, landlords, and brokers alike.

    TL;DR: Major lenders like Barclays and NatWest are raising mortgage rates by up to 20 basis points; this affects borrowers looking to switch lenders and those seeking new mortgages.

    Why Are Mortgage Rates Increasing?

    Several prominent lenders, including Barclays, Halifax, HSBC, and TSB, have announced increases in selected mortgage rates by up to 20 basis points. This trend is largely attributed to rising swap rates, which are pushing up funding costs for these institutions. As a result, lenders are adjusting their pricing strategies to maintain profitability in a changing financial market.

    How Do Recent FCA Changes Affect Borrowers?

    The Financial Conduct Authority (FCA) has implemented new affordability rules that are enabling more borrowers to switch to new mortgage lenders. Research from Stonebridge indicates that 98% of modified affordability assessments in Q1 2026 were utilized for external remortgages. This change is particularly important for borrowers looking to take advantage of potentially better rates and terms, as it simplifies the process of switching lenders.

    What New Products Are Available in the Mortgage Market?

    In addition to rate hikes, lenders are also expanding their product offerings. Santander is introducing new 10-year fixed deals and additional options for new builds, while Vida has rebranded its later-life mortgage proposition as Next Chapter Lending. This rebranding includes updated criteria aimed at supporting older first-time buyers and borrowers with mortgages extending into retirement, providing clearer affordability guidance.

    What This Means for Borrowers and Landlords

    The recent changes in the mortgage market mean that borrowers should be proactive in assessing their current mortgage arrangements. With many lenders raising rates, those considering remortgaging may find it beneficial to act quickly to secure more favorable terms before further increases occur. Landlords should also take note of the evolving buy-to-let market, as some lenders are adjusting their rates, which could impact investment decisions. Brokers will need to stay informed about these changes to better advise their clients on the best mortgage options available.

    Frequently Asked Questions

    Why are lenders raising mortgage rates now?

    Lenders are raising mortgage rates in response to increased funding costs driven by rising swap rates. This adjustment helps them maintain profitability amidst changing financial conditions.

    How can borrowers benefit from the new FCA affordability rules?

    The new FCA affordability rules allow more borrowers to switch lenders by simplifying the remortgaging process, making it easier to access potentially better rates and terms.

  • BSA Joins Mortgage Industry Mental Health Charter

    BSA Joins Mortgage Industry Mental Health Charter

    The Building Societies Association (BSA) has officially signed the Mortgage Industry Mental Health Charter, aligning itself with over 400 organisations that collectively represent more than 30,000 professionals in the mortgage sector. This initiative, which began in 2021, aims to address mental health challenges within the mortgage and property finance industries, promoting a culture of support and inclusivity.

    TL;DR: The BSA has joined the Mortgage Industry Mental Health Charter, enhancing support for over 30,000 professionals in the mortgage sector; this move aims to support a more open and inclusive industry environment.

    What is the Mortgage Industry Mental Health Charter?

    The Mortgage Industry Mental Health Charter is a collaborative effort designed to tackle mental health issues within the mortgage sector. By bringing together various organisations, the charter seeks to create a supportive framework that encourages open discussions about mental health. This initiative is particularly vital in an industry that often faces high-pressure situations, making mental well-being a priority.

    Why Did the BSA Sign the Charter?

    Paul Broadhead, the head of mortgage and housing policy at the BSA, stated that signing the charter aligns with the association’s core values of prioritising people. By endorsing this charter, the BSA demonstrates its commitment to fostering a supportive environment for its members, colleagues, and the communities they serve. This step is seen as a natural extension of the BSA’s ongoing efforts to promote mental health awareness and support within the industry.

    What This Means for Mortgage Professionals

    The BSA’s involvement in the Mortgage Industry Mental Health Charter is significant for mortgage professionals, including brokers, lenders, and support staff. It signals a shift towards a more compassionate workplace culture where mental health is openly discussed and addressed. This could lead to improved job satisfaction, reduced stress levels, and a more resilient workforce, ultimately benefiting borrowers and the wider property market.

    What Should Stakeholders Watch Next?

    As the BSA joins the charter, stakeholders in the mortgage industry should monitor how this initiative evolves. Key areas to watch include the implementation of mental health programs, training for staff, and the overall impact on workplace culture. Additionally, the response from other organisations in the mortgage sector could lead to a broader movement towards prioritising mental health, influencing policies and practices across the industry.

    Frequently asked questions

    What are the benefits of the Mortgage Industry Mental Health Charter?

    The charter aims to create a supportive environment for mental health discussions, leading to improved well-being for professionals in the mortgage sector.

    How can mortgage professionals get involved?

    Mortgage professionals can engage with the charter by advocating for mental health initiatives within their organisations and participating in related training and support programs.

  • Bridging Finance Offers Hit £520m in Q2 2026

    Bridging Finance Offers Hit £520m in Q2 2026

    The latest data from Brickflow reveals significant activity in the bridging finance sector, with £520 million in property finance offers recorded in the second quarter of 2026. This surge highlights the ongoing demand for development and bridging finance, despite a slight decline in search activity.

    TL;DR: Bridging finance offers reached £258.9 million in Q2 2026, while development finance accounted for £236.5 million; borrowers should note the decrease in search activity for bridging and commercial mortgages.

    How Did Bridging Finance Perform in Q2 2026?

    Bridging finance offers totalled £258.9 million in the second quarter, contributing to the overall £520 million in property finance offers reported by Brickflow. Development finance, which represented 61% of the total value of searches, amounted to £236.5 million, indicating a strong interest in funding property developments. However, searches for bridging finance fell by 13.6%, suggesting a cooling in immediate demand.

    What Trends Are Emerging in Property Finance?

    While bridging finance offers decreased, requests for decisions in principle increased by 6% for bridging finance and 12% for commercial mortgages. This indicates that while immediate applications may be declining, there is still a growing interest in securing finance for future projects. The overall decline in bridging searches aligns with broader market trends, as reported by the Bridging & Development Lenders Association, which noted a 15% drop in applications across the market in Q1 2026.

    What This Means for Borrowers and Investors

    For landlords, borrowers, and investors, the current market suggests a cautious approach to bridging finance. The decrease in search activity could indicate a shift in market sentiment, prompting stakeholders to reassess their financing strategies. However, the increase in lenders willing to finance land with detailed planning permission—up 61% from the previous quarter—could present new opportunities for development projects.

    Frequently Asked Questions

    What types of finance are included in the £520 million figure?

    The £520 million includes bridging finance offers (£258.9 million), development finance (£236.5 million), and commercial mortgage offers (£24.6 million).

    Why did bridging searches decline in Q2 2026?

    The 13.6% decline in bridging searches may reflect a broader market cooling, as indicated by similar trends reported by industry associations.

  • UK Mortgage Market Update: Key Developments This Week

    UK Mortgage Market Update: Key Developments This Week

    The UK mortgage market is experiencing significant shifts as major lenders adjust their rates in response to rising funding costs. Recent changes in affordability rules by the FCA are enabling more borrowers to switch lenders, while the new Prime Minister, Andy Burnham, is prioritising housing with ambitious plans for housebuilding.

    TL;DR: 98% of modified affordability assessments are now facilitating external remortgages; major lenders like Barclays and NatWest are raising rates by up to 20bps, impacting borrowers and landlords alike.

    How are lenders responding to rising costs in the mortgage market?

    Several major lenders, including Barclays, Halifax, HSBC, TSB, and Skipton, have increased selected mortgage rates by up to 20 basis points. This trend is largely a response to rising swap rates, which are pushing up funding costs. NatWest has also announced similar rate hikes affecting both residential and buy-to-let mortgages. However, not all lenders are following this trend; Shawbrook has reduced some rates, while Keystone has increased select buy-to-let rates.

    What does the FCA rule change mean for borrowers in the mortgage market?

    The recent changes to affordability assessments introduced by the FCA have had a positive impact on borrowers. Research from Stonebridge indicates that 98% of modified assessments in Q1 2026 were used for external remortgages, allowing more borrowers to switch to new lenders rather than remain with their current providers. This shift is particularly beneficial for those looking to secure better rates amidst the current market fluctuations.

    What should landlords and investors watch for in the mortgage market?

    Landlords and investors should pay close attention to the ongoing rate changes and the implications of the new affordability rules. With major lenders adjusting their rates, those looking to remortgage or invest in buy-to-let properties may find opportunities to secure more favourable terms. Additionally, the expansion of Santander’s product offerings, including new 10-year fixed deals and options for new builds, could provide more choices for investors in the coming months.

    What this means for first-time buyers in the mortgage market

    First-time buyers may find the current market challenging due to rising rates, but the FCA’s rule changes could offer some relief. With more flexibility in affordability assessments, first-time buyers may have a better chance of securing mortgages that suit their financial situations. Additionally, Vida’s rebranding of its later-life mortgage proposition as Next Chapter Lending is aimed at supporting older first-time buyers and home movers, which could open up new avenues for this demographic.

    Frequently asked questions

    What are the implications of the recent rate hikes?

    The recent rate hikes by major lenders mean that borrowing costs are increasing, which could affect affordability for new and existing borrowers. Those looking to remortgage should consider acting quickly to secure better rates before further increases.

    How can borrowers benefit from the FCA’s rule changes?

    The FCA’s changes to affordability assessments are designed to facilitate easier switching between lenders. Borrowers can take advantage of this by exploring remortgage options that may offer lower rates or better terms compared to their current mortgages.

  • Mortgage Market Update: Swap Rate Surge Drives Price Hikes

    Mortgage Market Update: Swap Rate Surge Drives Price Hikes

    The UK mortgage market is experiencing a significant shift as swap rates surge, prompting lenders to raise mortgage pricing across various products. This increase is primarily driven by geopolitical tensions, specifically the escalating conflict between the US and Iran, which has led to rising oil prices and subsequently impacted swap rates. Borrowers and landlords should be aware of these changes, as they will affect mortgage affordability and options.

    TL;DR: The two-year swap rate rose to 4.258% from 3.993%, leading lenders like Nationwide and HSBC to increase mortgage rates; borrowers will face higher costs across multiple products.

    What are the current swap rate changes?

    As of 22 July, the two-year swap rate increased to 4.258%, up from 3.993% last month. The five-year swap rate also saw a rise, climbing from 4.034% to 4.316%. These changes reflect the broader economic impact of geopolitical events, particularly the conflict in the Middle East and rising oil prices, which have reached $100 per barrel for the first time since May.

    How are lenders responding in the mortgage market?

    In response to the rising swap rates, several major lenders have adjusted their mortgage pricing. Nationwide has increased rates for existing borrowers, with the two-year fixed additional borrowing product at 60% loan to value (LTV) rising from 4.37% to 4.6%. Similarly, the deal at 75% LTV has increased from 4.46% to 4.68%. Other lenders, including HSBC and Accord, have also raised their rates, with HSBC implementing its second rate increase within the same week and Accord adjusting its fixed residential new business rates by 0.2% as of 24 July.

    What does this mean for borrowers and landlords?

    For borrowers and landlords, these rate increases signify a shift in the mortgage market that could affect affordability and borrowing options. Existing borrowers looking to switch or remortgage may find that their options are now more expensive. For instance, TSB has raised its two-year fixed residential purchase and remortgage rates by up to 0.2%, with new rates starting at 4.59% for a deal at 60% LTV with a £995 fee. Virgin Money has also adjusted its product transfer rates, increasing residential pricing by as much as 0.23%.

    These changes are indicative of a broader trend where rising swap rates, rather than changes to the Bank of England base rate, are influencing mortgage costs. As Rachel Geddes from the Mortgage Advice Bureau noted, the effect for borrowers is similar: mortgages are becoming more expensive.

    What should borrowers and investors watch next in the mortgage market?

    As the mortgage market continues to adjust to these changes, borrowers and investors should keep an eye on further announcements from lenders regarding rate adjustments. With the current geopolitical tensions and their potential impact on the economy, it is important for those in the market to stay informed about mortgage rates and consider their options carefully. Monitoring current mortgage rates and comparing products will be essential for making informed decisions.

    Frequently asked questions

    How do rising swap rates affect mortgage pricing?

    Rising swap rates typically lead to higher mortgage pricing as lenders adjust their rates to reflect increased costs associated with borrowing. This means that borrowers may face higher interest rates on new and existing mortgage products.

    What should I do if my mortgage rate increases?

    If your mortgage rate increases, consider reviewing your options for remortgaging or switching to a different lender. It’s also advisable to consult with a mortgage advisor to explore the best available rates and products.

  • RAW Capital Partners Introduces New Bridging Finance Options

    RAW Capital Partners Introduces New Bridging Finance Options

    RAW Capital Partners has launched a new range of bridging finance products aimed at enhancing its offerings for UK property investors. This move follows the lender’s recent expansion into the UK resident market, allowing them to cater to a wider audience beyond foreign nationals and expats.

    TL;DR: RAW Capital Partners now offers bridging loans from £100,000 to £4m for UK property investors; the new products feature terms from three to 18 months and a maximum LTV of 60%.

    What is Bridging Finance?

    Bridging finance is a short-term loan option designed to provide quick access to funds for property transactions. It is typically used by investors who need to secure a property quickly before permanent financing is arranged. The new range from RAW Capital Partners offers flexibility with loan sizes ranging from £100,000 to £4 million.

    How Does This Affect UK Property Investors?

    The introduction of these bridging finance options is significant for UK property investors, particularly those looking to act quickly in a competitive market. With terms available from three to 18 months and a maximum loan-to-value ratio of 60%, investors can secure funding rapidly, which is essential for purchasing properties or completing renovations.

    What Should Brokers Know?

    Brokers should note that these products are structured with a tiered pricing model based on the loan-to-value ratio, which can help them tailor solutions for their clients. The emphasis on speed and certainty in execution means that brokers can expect a streamlined process when working with RAW Capital Partners.

    What This Means for Borrowers

    For borrowers, the new bridging finance options provide an opportunity to use quick funding for property investments. With funding sourced from the RAW Mortgage Fund, which manages over £220 million in assets, borrowers can benefit from a reliable and swift lending process, important for capitalising on investment opportunities.

    Frequently asked questions

    What are the typical uses for bridging finance?

    Bridging finance is often used for purchasing properties quickly, financing renovations, or covering gaps in property transactions where timing is critical.

    How quickly can I access bridging finance?

    Bridging finance can typically be arranged quickly, often within a matter of days, making it ideal for urgent property purchases.

  • Unregulated Mortgage Advice: Risks in the Mortgage Market

    Unregulated Mortgage Advice: Risks in the Mortgage Market

    Recent findings reveal that a significant number of UK borrowers are turning to unregulated sources for mortgage advice, raising concerns about the potential risks involved. With many people relying on informal guidance, the implications for the mortgage market could be profound, particularly for those making critical financial decisions without adequate oversight.

    TL;DR: A large portion of borrowers are seeking unregulated mortgage advice; this trend poses risks of financial loss, especially among younger consumers.

    Why Are Borrowers Choosing Unregulated Advice?

    A survey of UK credit card holders found that many sought financial guidance from non-regulated sources, with mortgages being a key area of concern. The trend is particularly pronounced among younger consumers, highlighting a growing reliance on informal advice that could have serious implications for borrowers navigating the complexities of the mortgage market.

    What Are the Risks of Unregulated Mortgage Advice?

    The survey also revealed alarming statistics regarding financial losses incurred from poor advice. Many credit card holders reported losing money due to bad guidance, with some experiencing notable losses in the past year. For mortgage-related decisions, the stakes are even higher, as the most common loss range among affected consumers was significant. This raises critical questions about the reliability of the advice being sought and the potential financial repercussions for borrowers.

    How Are Consumers Using AI for Financial Advice?

    Interestingly, a portion of consumers reported using AI tools for financial advice, covering areas such as budgeting and investing. However, a study assessing major AI platforms indicated that many users fail to verify the guidance received. A significant percentage of respondents did not check the risks associated with the advice, while only a small fraction would verify a financial professional’s credentials. This lack of due diligence could exacerbate the risks associated with unregulated advice.

    What This Means for Borrowers and the Mortgage Market

    The increasing reliance on unregulated advice poses significant risks for borrowers, particularly those new to the mortgage market. For brokers, this trend underscores the importance of demonstrating the value of regulated advice and building trust with clients. As borrowers face potential financial losses from unverified sources, the role of professional guidance becomes even more critical in helping them navigate their mortgage options effectively. For those looking to understand their options better, checking current mortgage rates can provide valuable insights.

    Frequently Asked Questions

    What should I do if I’ve received unregulated mortgage advice?

    If you suspect that you have received unregulated mortgage advice, it’s important to seek a second opinion from a qualified mortgage advisor. They can help assess your situation and provide guidance based on current regulations and best practices.

    How can I ensure I’m getting reliable mortgage advice?

    To ensure you receive reliable mortgage advice, always seek guidance from regulated professionals. Check their credentials and ask about their experience and any potential conflicts of interest before proceeding with their recommendations.

  • Mortgage Market Update: Rates Rise Amid Swap Surge

    Mortgage Market Update: Rates Rise Amid Swap Surge

    The UK mortgage market is experiencing significant changes as swap rates soar, leading to increased mortgage pricing across various lenders. This surge is largely attributed to geopolitical tensions, particularly the escalating conflict between the US and Iran, which has driven oil prices to $100 per barrel for the first time since May. As a result, borrowers are facing higher costs for their mortgages.

    TL;DR: The two-year swap rate has jumped to 4.258%, prompting lenders like Nationwide and HSBC to raise mortgage rates; borrowers should prepare for increased costs.

    What are the latest changes in the mortgage market?

    As of July 22, the two-year swap rate rose from 3.993% to 4.258%, while the five-year swap rate increased from 4.034% to 4.316%. These changes have led to various lenders adjusting their mortgage rates. Nationwide has raised rates on several products for existing borrowers, including a two-year fixed additional borrowing product at 60% loan to value (LTV), which increased from 4.37% to 4.6%. Additionally, the rate for a 75% LTV deal rose from 4.46% to 4.68%. The fee-free five-year fixed options also saw price hikes.

    Which lenders are increasing their rates in the mortgage market?

    Nationwide is not alone in its rate adjustments. HSBC has announced its second rate increase of the week, effective from July 27, while Accord has raised new business rates for fixed residential mortgages up to 90% LTV by 0.2%. Notably, TSB has lifted rates on its two-year fixed residential purchase and remortgage products by up to 0.2%, with new rates starting at 4.59% for a deal at 60% LTV. Virgin Money has also adjusted its product transfer rates, increasing residential pricing by as much as 0.23%.

    What does this mean for borrowers and landlords?

    The rising swap rates and subsequent mortgage pricing hikes mean that borrowers and landlords will face higher costs when securing new mortgages or refinancing existing ones. For example, Nationwide’s two-year fixed product at 60% LTV now costs 4.6% with a £999 fee, which could impact affordability for many. Landlords looking to invest in buy-to-let properties will also see increased rates, as all new business rates for buy-to-let (BTL) mortgages have risen by 0.1%. This trend suggests that prospective buyers and current homeowners should act swiftly if they are considering locking in a rate before further increases occur.

    What should borrowers watch for next in the mortgage market?

    Borrowers should stay alert to further changes in the mortgage market, particularly as lenders continue to respond to fluctuating swap rates. With geopolitical tensions affecting economic stability, it is important for borrowers to monitor their options closely. Those looking to switch or secure a mortgage should consider comparing rates actively to find the best deal available. For ongoing updates, check our mortgage rate comparison tool.

    Frequently asked questions

    How do rising swap rates affect mortgage rates?

    Rising swap rates typically lead to higher mortgage rates as lenders adjust their pricing to maintain profitability. This means borrowers may face increased costs for new mortgages or refinancing.

    What should I do if I need a mortgage now?

    If you need a mortgage, consider acting quickly to secure a rate, as lenders are increasing prices. Comparing current mortgage rates can help you find the best deal before further hikes.