Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
HSBC Launches Automated Remortgaging Technology
HSBC has become the first lender to introduce LMS’s automated remortgaging technology. The system is designed to speed up straightforward remortgage cases and reduce delays for brokers and borrowers. It automates low-risk applications, providing customers with earlier clarity on costs and legal requirements, and allows conveyancers to focus on more complex cases.
NatWest, Halifax, BM Solutions, and Accord Mortgages Announce Changes
NatWest has increased its maximum loan-to-income (LTI) ratio to 6.5 times salary for joint applicants earning more than £150,000. This move is aimed at helping higher earners secure larger mortgages. Halifax and BM Solutions are cutting mortgage rates across a range of residential and buy-to-let products, while NatWest is set to increase rates for new and existing borrowers from 21 May. Accord Mortgages is tightening affordability criteria by raising the minimum income requirement for higher loan-to-income borrowing on most residential applications.
Market Trends and Customer Vulnerability
Rightmove reports that the average asking price for homes coming to market rose by 1.2% in May. The housing market continues to show a north-south divide, with prices rising in more affordable northern regions and declining in London and the South East. The Financial Ombudsman Service says a quarter of customers who made complaints last year were identified as vulnerable, a rise from the previous year.
Mortgage Product Demand and Cancellations
Moneyfacts reports that demand for variable and tracker mortgages has doubled since last September. Average mortgage rates have edged lower this week, despite ongoing political uncertainty. The value of cancelled mortgages reached a record £8.7 billion in Q1, according to Bank of England data analysed by Novus Strategy.
Source: Mortgage Strategy