First 40pc Interest-Free Loans Go Live
Mortgage lenders have started rolling out their new rates alongside the launch of Help To Buy London, which goes live today.
First-time buyers now have the opportunity to own a new-build home in London with just a 5pc deposit that will be backed by a 40pc government equity loan, which is also interest free for the first five years.
Therefore, first-time buyers in London will only need a mortgage for 55pc of the property value.
Leeds Building Society is offering a 1.79pc fixed rate and a five-year fixed rate at 2.45pc.
Nationwide is also adjusting its products to match Help To Buy and Help To Buy London.
Source: This is Money
Mortgage Levels are Still Falling
As long as interest rates stay low, fixed rate mortgage deals are going to follow.
The average two year fixed-rate for a 10pc deposit is 3.06pc, down from 3.84pc last year.
In 2012 someone with 40pc equity would have been charged 4.05pc for two years fixed. Today, that rate is just 1.99pc.
The Bank of England is eventually going to increase rates - that much is obvious. We just don't know when. Therefore, landlords are incentivised to remortgage on low rates while they are still around. Then, use the money saved to overpay the mortgage (when possible) to decrease the term.
Source: The Independent
House Building Target Falls Short
The number of houses built in London has fallen short of target by 25pc, despite being the highest since 2008's crash.
The National House Building Council said that 156,140 new homes were registered to be built last year, but the target set by the government is 200,000 a year.
Worse still, even the target of 200,000 homes is mistaken. Experts suggest 250,000 houses need to be built a year, which means that the current figure is nearly 100,000 short, though estimates vary.