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Gross mortgage lending reached an estimated £13.7 billion in December, a 14% rise from £12.1 billion in November and up 3% on December 2008, according to the Council of Mortgage Lenders.  This is the first time the annual monthly comparison has been in positive territory since October 2007. However, other than in 2008, this is the lowest figure for December since 2001 (£13.4 billion).

Lending totaled £39.1 billion in the fourth quarter, up slightly from £39 billion in the previous quarter, but down by 14% on the last three months of 2008. There was typically a 6% fall between the third and fourth quarter.

January 22, 2010

The Skipton Building Society, the UK’s fourth largest building society, has announced that they will raise their standard variable rate from 3.5% to 4.95% on 1 March.

Around 60,000 Skipton customers expect their rate to be no more than 3% over Bank of England base rate. However, a condition in their mortgage offer states that this rate can be changed in “exceptional” circumstances.  One possible circumstance is if base rate is less than or equal to 2.7%.

Aaron Strutt, a broker at Trinity Financial Group, says: “This payment shock will force many of Skipton’s customers’ into remortgaging.  Luckily there are some excellent mortgages for them to switch to with the lowest tracker rates set at around 2.5%.  But, for those with less than 15% equity in their property, it will be difficult to switch to another mortgage provider. ”

“When a lender does something like this, the financially worse off will take the payment hike.”

January 22, 2010

Many of Trinity Financial’s clients have come to the end of their fixed or tracker rates and are now sitting on their lenders’ standard variable rate. Borrowers paying a rate of over 4% may be able to reduce their mortgage payments by switching to other banks.

Some of the largest lenders have un-competitive standard variable rates, such as: Abbey at 4.24% and Northern Rock at 4.79%.

Below is a table showing some of the largest banks and their standard variable rates. This may help you see how competitive your present rate is:

Over the last week there has been a lot of mortgage rate movements by lenders. Abbey, Alliance and Leicester, Royal Bank of Scotland and Halifax are just a few of the big names to make changes.

Coventry Building Society also reduced the size of the deposit required to access their lowest rate mortgages. Previously these were available only to borrowers with a 50% deposit, but thankfully this tight lending-criteria has now been relaxed. The Coventry now has market-leading rates. For those with a 25% deposit, two-year tracker rates now start at 2.79% and, for borrowers with a 15% deposit, extremely competitive fixed rates start at 5.15%.

Aaron Strutt, a broker at Trinity Financial Group, says: “It has been a really encouraging week for mortgages as so many lenders have lowered their rates for those looking for mortgages. There is far more competition in the market and this is helping to drive rates down.”

January 15, 2010

Abbey as a brand will be available only to borrowers who come through intermediaries. It has been announced that the 1000 high street branches of Abbey and Bradford and Bingley will be known as Santander by the end of January.

Since the unified brand was introduced in 2005, Santander has rebranded in all of its key markets, including Spain, Portugal, Germany, Brazil, Mexico, Chile and Argentina.

January 15, 2010

This week more buy-to-let lenders have announced that they are re-entering the investment market. Clydesdale Bank now offers a two-year fixed rate at 5.99% with an arrangement fee of £1499. It is available to those with a 30% deposit. Godiva Mortgages, owned by the Coventry Building Society, have re-introduced a choice of two mortgages for those with a 30% deposit with rates starting at 4.99%.

Trinity Financial is expecting to see more lenders come back into the buy-to-let mortgage market during 2010. The Mortgage Works and Birmingham Midshires are particularly keen to lend, but do not want to be seen as the only major players.

We will see more competition when more lenders return. Arrangement fees will start to get lower and loan-to-values increase.

January 8, 2010

Virgin Money intend to offer mortgages to the UK retail banking market after buying Somerset-based bank The Church House Trust.

There has been talk that Sir Richard Branson wanted to buy a bank for the last couple of years and this will give him the platform to offer savings and mortgage products. Virgin will pay £12.3m for the bank and invest a further £37.3m.  Previously, Virgin Money teamed up with other banks such as Royal Bank of Scotland and Bank of America as they did not have a banking licence.

Sir Richard Branson said: “The Church House Trust business offers us a strong platform for growth.”

January 8, 2010.