IMLA: Expect 2021 Gross Mortgage Lending Rise

The Intermediary Mortgage Lenders Association (IMLA) has predicted a increase in gross mortgage lending to £283 billion this year together with a swift return to household spending as Covid-19 lockdown restrictions are eased. The trade body’s New Normal report, which makes a number of predictions about the mortgage market over the coming year, observes that household finances generally remain robust and will continue to weather the current economic volatility. Unlike previous financial crises, the unique government support package provided since the start of the Covid-19 crisis has helped the majority of households to maintain financial stability. Read more on the Best Advice website.

https://bestadvice.co.uk/imla-expect-2021-gross-mortgage-lending-rise/

Call For UK Housing Policy To Be Revised

The number of first time buyers in the UK has remained flat despite mortgages becoming more affordable than ever, research has found. Record mortgage affordability is keeping the housing market afloat, but current housing policy needs to be revised to meet home ownership targets according to a new report by the Intermediary Mortgage Lenders Association (IMLA). It forecasts a continuing recovery in mortgage lending during 2016 and 2017, with a particular pickup in lending for house purchases by owner occupiers from an estimated £142 billion in 2015 to £155 billion in 2016 and £169 billion in 2017. However, reviewing 2015 activity, the report finds that even though mortgage affordability has hit its highest level ever, with buyers spending a record low 8.6% of their income on interest by the third quarter of 2015 and even first time buyers spending only 9.7% by November. Read more on the Property Wire website.

Scrapping Buy-To-Let Tax Relief Will Push Rents Up

Scrapping tax relief for buy-to-let landlords will constrain the supply of rented property and make life harder for tenants, a lenders’ group has warned. The Intermediary Mortgage Lenders Association (Imla) said measures that discouraged investment in private rental housing at a time of population growth and low supply would only push up rents. The organisation, which deals with banks and building societies that offer loans through brokers, said the removal of higher-rate tax relief announced in July’s emergency budget would push some investors into losses and raise the effective tax rate above 100%. Read more on the IMLA website.

Help-To-Buy Scheme Needs Replacement Before It Ends

Failure to replace the help-to-buy mortgage guarantee scheme when it comes to an end next year will choke off competition and push the first-time buyer market back into decline, lenders have warned. The Intermediary Mortgage Lenders Association (IMLA), which represents firms that market their products through brokers and advisers, said 65% of its members believed competition would fall unless a permanent indemnity scheme was brought in to replace Help-to-Buy 2.  Read more on the Guardian website.

Rising House Prices Will Derail Help to Buy

Large numbers of mortgage lenders and brokers are predicting part of the government's Help to Buy scheme will be withdrawn early because it is artificially inflating house prices, according to an industry survey. Research by the Intermediary Mortgage Lenders Association (Imla), a group made up of banks and building societies that offer loans through brokers, found growing concerns that rising house prices could cause the chancellor to pull the plug on the part of the scheme that guarantees 95% home loans before the end of its planned three-year term. Read more on the Guardian website.