Latest news with #homebuyers
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13 hours ago
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Lenders follow Bank of England and hold mortgage rates
Most lenders opted to maintain their mortgage deals as the Bank of England (BoE) decided to hold interest rates on Thursday, but experts expect more sub-4% offers in the coming weeks. The average rate for a two-year fixed mortgage stands at 4.89%, while five-year fixed deals average 5.19%, according to data from Uswitch. The Bank of England has kept interest rates at 4.25% amid inflation fears, delivering a blow to homeowners who were expecting a relief in their mortgage. However, industry experts are not giving up hope yet. Tom Davies, group financial services managing director at LRG, said: "For prospective buyers, the key question shouldn't be, 'Will the rate fall again soon?' but, 'Can I afford to buy now, and is the right property available?'. Today that answer is more often yes than no. Buyers who wait for the perfect moment may find it never arrives — or that it passes them by. "What matters now is a functioning, competitive mortgage market with realistic pricing and good choice. That's a strong foundation: a good environment for anyone looking to move or invest." Matt Thompson, head of sales at estate agency Chestertons, said: 'Some buyers paused their property search in the hope for another interest rate cut and a more varied selection of mortgage products but higher-than-expected inflation has diminished those odds for the time being. "We have recently seen some lenders increase the cost of their fixed-rate deals but there are still sub-4% options available which will encourage some house hunters to resume their search over the coming weeks.' Read more: UK house price growth halves after stamp duty break end The primary inflation measure, the Consumer Price Index (CPI), stood at 3.4% in the 12 months to May, a slowdown from the previous month. However, price increases are still well above the BoE's 2% target. This week among the major lenders only Halifax reduced rates, as most banks decided not to touch their mortgage deals. HSBC (HSBA.L) has a 4.01% rate for a five-year deal, unchanged from the previous week. For those with a Premier Standard account with the lender, this rate is 3.98%. Looking at the two-year options, the lowest rate is 3.99% with a £999 fee, also unchanged from the previous week. Both cases assume a 60% loan-to-value (LTV) mortgage, meaning buyers need to have at least 40% for a deposit. HSBC offers 95% LTV deals, meaning you only need to save for a 5% deposit. However, the rates are much higher, with a two-year fix at 5.05% or 4.89% for a five-year fix. This is because their financial situation and deposit size determine the rate someone can get. The larger the deposit, the lower the LTV, allowing buyers to access better deals because lenders consider them less risky. NatWest's (NWG.L) five-year deal is 3.95% with a £1,495 fee, untouched from the previous week. The cheapest two-year fix deal is 3.2%, again the same as last week. You'll need at least a 40% deposit to qualify for the rates in both cases. At Santander (BNC.L), a five-year fix is 4.08%% for first-time buyers, the same as before. It has a £999 fee, assuming a 40% deposit. Read more: Number of million-pound homes for sale in Britain doubles since 2019 For a two-year deal, customers can also secure a 4.01% offer, with the same £999 fee, again unchanged. However, the lender has cut a raft of deals for first-time buyers: 90% LTV two-year fixed rate with a £0 fee and £250 cashback. Rate reduced by 0.15% to 4.73%. 95% LTV two-year fixed rate with a £0 fee and £250 cashback. Rate reduced by 0.14% to 5.00%. 90% LTV five-year fixed rate with a £999 fee and £250 cashback. Rate reduced by 0.10% to 4.47%. 95% LTV five-year fixed rate with a £0 fee and £250 cashback. Rate reduced by 0.22% to 4.85%. The new pricing is available to all customers, whether they are applying via a broker or directly, under Santander's "no dual pricing" pledge. Barclays (BARC.L) was the first among major lenders to bring back under-4% deals and currently has a five-year fix at 3.99%, unchanged from last week. For "premier" clients, this rate drops to 3.98%. The lowest for two-year mortgage deals is 3.97%, also unchanged. Barclays last month launched a mortgage proposition to help new and existing customers access larger loans when purchasing a home. The initiative, known as Mortgage Boost, enables family members or friends to effectively "boost" the amount that can be borrowed toward a property without needing to lend or gift money directly or provide a larger deposit. Under the scheme, a borrower's eligibility for a mortgage can increase significantly by including a family member or friend on the application. For example, an individual with a £37,500 annual income and a £30,000 deposit might traditionally be able to borrow up to £168,375, enabling them to purchase a home priced at around £198,375. However, with Mortgage Boost, the total borrowing potential can rise substantially if a second person, such as a parent, joins the application. In this case, if the second applicant also earns £37,500 a year, the combined income could push the borrowing limit to £270,000, enabling the buyer to afford a home worth up to £300,000. Nationwide's (NBS.L) lowest mortgage rate for first-time buyers is 4.24% for a five-year fix, which is the same as before. First-time buyers are currently looking at 4.04% for a two-year fix, again no changes from the previous week. Read more: Average UK house asking price drops by more than £1,000 The lender has adjust its mortgage affordability calculation by reducing stress rates by 0.75 and 1.25 percentage points, helping applicants borrow more, whether buying a first home, moving, or remortgaging. Applicants can borrow, on average, £28,000 more; however, in some remortgage cases, customers could borrow up to £42,600 more. Nationwide also reduced its standard stress rate and the rate applied to eligible first-time buyers and home movers fixing their deal for at least five years. Halifax, the UK's biggest mortgage lender, offers a five-year rate of 4.03% (also 60% LTV), untouched from last week. The lender, owned by Lloyds (LLOY.L), offers a two-year fixed rate deal at 3.97%, with a £999 fee for first-time buyers, lower than the previous 4%. It also offers a 10-year deal with a mortgage rate of 4.78%. Read more: How to choose where to live as you get older Halifax has enhanced its five-year fixed mortgage products by increasing borrowing capacity. This improvement allows borrowers to access up to £38,000 more, enabling them to secure larger mortgages based on individual incomes. Rachel Springall, finance expert at Moneyfacts, said: "The flourishing choice of low-deposit mortgages will no doubt be welcomed by borrowers looking to remortgage or are a first-time buyer. "The government has been clear that it wants lenders to do more to boost UK growth, and so a rise in product availability for aspiring homeowners is a healthy step in the right direction." NatWest's currently offers some of the lowest rates, with a five-year fix coming in at 3.95% and a two-year deal at 3.92%. However both require a hefty 40% deposit. The average UK house price is £297,781, so a 40% deposit equals about £120,000. A growing number of homeowners in the UK are opting for 35-year or longer mortgage terms, with a significant rise in older borrowers stretching their repayment periods well into their 70s. Read more: UK inflation slows to 3.4% in May as transport costs ease Lender April Mortgages offers buyers the chance to borrow up to six times their income on loans fixed for five to 15 years, from a deposit of 5%. Both those buying alone and those buying with others can apply for the mortgage. As part of the independent Dutch asset manager DMFCO, the company offers interest rates starting at 5.20% and an application fee of £195. Skipton Building Society has also said it would allow first-time buyers to borrow up to 5.5 times their income to help more borrowers get on the housing ladder. Leeds Building Society is increasing the maximum amount that first-time buyers can potentially borrow as a multiple of their earnings with the launch of a new mortgage range. Aspiring homeowners with a minimum household income of £40,000 may now be able to borrow up to 5.5 times their earnings. Mortgage holders and borrowers have faced record-high repayments in recent years, as the Bank of England's base rate has been passed on by banks and building societies. According to UK Finance, 1.3 million fixed mortgage deals are set to end in 2025. Many homeowners will hope the Bank of England acts quickly to cut rates more aggressively. At the same time, savers will likely root for rates to remain at or near their current levels. Read more: The pros and cons of getting a mortgage into your 70s How school fees can affect your mortgage borrowing Pros and cons of lifetime ISAs
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14 hours ago
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Is Working With a Mortgage Broker Better for Your Wallet?
There are a lot of things homebuyers have to consider when looking to buy. One of those is deciding how to get financing. For example, when considering working with a mortgage broker versus a nonbank retail lender, you might wonder what the best financial move is for your money. A mortgage broker, per LendingTree, is a third party who connects individuals with lenders, while a nonbank retail lender loans money but isn't affiliated with a bank. Check Out: Learn More: Read on for more details about choosing a mortgage broker or a nonbank retail lender. Also see how to negotiate a lower mortgage rate, according to experts. Casey Gaddy of The Gaddy Group with Keller Williams Empower Philadelphia said to think of nonbank retail lenders like taking a cab: 'They work for one company, offer one set of products and the pricing is usually fixed. You get what you get, and that's it.' He said to compare that with using a broker, which, in his opinion, is more like using Uber or Lyft. 'You've got options,' he said. 'A mortgage broker shops your loan around to different lenders to try and find you the best deal — kind of like getting multiple drivers competing for your fare. They're not tied to one bank, which means more flexibility in pricing and sometimes better service too.' A 2024 study by Polygon Research, as reported by the National Mortgage Professional, confirms what brokers have claimed for years — working with a mortgage broker can save you serious money. Borrowers who used a broker saved $10,662, on average, compared with those who worked with nonbank retail lenders. But that's not all. Read Next: It's not just long-term savings. Upfront costs are lower as well. In 2023, broker-assisted loans averaged 115 basis points upfront for a 6.58% mortgage rate, versus 148 basis points and a 6.6% rate for retail lenders, according to the study. 'Brokers usually have lower overhead than the big retail lenders, and in a lot of cases, they pass those savings on to the buyer,' Gaddy said. 'Not always — but you can ask and sometimes even negotiate. So yes, borrowers do often pay less upfront with a mortgage broker.' VA borrowers can realize big cost reductions by working with a mortgage broker as well. The study revealed an average savings of $13,432 per loan, with an interest rate of 6.26% versus 6.4% through retail lenders. Gaddy agreed that VA borrowers can benefit even more from working with a mortgage broker — especially if the broker works with VA-focused lenders. However, he recommended confirming that the broker works with VA-focused lenders so you can have access to the most competitive rates and less fees. Mortgage brokers can help underserved communities gain access. In 2023, brokered lending approval rates were 70% in Majority Minority Census Tracts (MMCTs) compared with 58% for retail lenders. In non-MMCTs, brokers saw 75% approval versus 64% for retail. Gaddy said that brokers can help level the playing field for everyone. 'Most people don't know loans get sold off on the secondary market anyway,' he said. 'But if you've got a broker fighting to get you the best rate upfront, that's less work for the borrower and more money and equity coming their way over the life of the loan — who doesn't love that?' More From GOBankingRates 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years This article originally appeared on Is Working With a Mortgage Broker Better for Your Wallet?
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15 hours ago
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5 Top US Housing Markets for International Homebuyers — Should You Buy There, Too?
The U.S. housing market has always held an appeal for international homebuyers. International buyers spend millions of dollars purchasing residential properties in states across the country, but some cities have a bigger draw than others. Trending Now: Read Next: Recent data from shows that foreign buyers are more likely to buy homes in coastal regions and warm climates. Here are the top five U.S. housing markets for international homebuyers. With near year-round warm weather and a thriving nightlife, it is no wonder that Miami, Florida, topped the list for international homebuyers. According to Miami took 8.7% of the international traffic share. The median home listing price in the area was $635,000, while the median sold home price in May 2025 was $580,000. Both domestic and foreign buyers should be wary of the cost of living in Miami, which is 19% higher than the national average and 15% higher than the state average, as indicated by Best Places. Without substantial income, buying property in Miami could end up being more costly than it is worth. For You: The second highest share of international traffic went to New York, New York. Foreign homebuyers flocked to the Big Apple in the first quarter of 2025. The city took 4.9% of the international traffic share. The median home listing price in May 2025, according to was $868,000. The real estate listing website notes that the city is currently considered a 'buyer's market' because the supply of homes in the area exceeds demand. While buyers will benefit from homes that sell for less than asking, the cost of living in the area is well above the average in the U.S. International home buyers were also drawn to the sunny coast of Southern California. The bright lights of Los Angeles attracted 4.6% of the international traffic share. The median listing home price in Los Angeles was $1.2 million in May 2025, significantly higher than the average mid-tier home in the state. The City of Angels' median home listing price was nearly $1.25 million in May 2025, per Realtor. Potential international and domestic Los Angeles home buyers should also be aware of the high cost of living, which is 61% higher than the average in the U.S., as reported by Best Places. Another top-ranking area for international buyers is Orlando, Florida. Disney World's hometown captured 2.9% of the international traffic share, attracting foreign buyers from a multitude of countries. Attracted by the warm climate, low cost of living and absence of state income tax, international buyers have consistently sought properties in the Sunshine State. The median listing home price in the area was $394,700, which was on par with the median sold home price. Considered a neutral housing market by both buyers and sellers can take advantage of low home prices that sell in around 60 days. Rounding out the top five housing markets for international buyers is Dallas, Texas. Located in the heart of the Lone Star State, 'Big D' is known for its great BBQ, southern charm and vibrant music scene. Dallas took 2.8% of the international traffic share, likely due to its affordable housing prices and low cost of living. The median listing home price was $449,500, and the cost of living is only 0.2% higher than the national average, according to Best Places. More From GOBankingRates 10 Genius Things Warren Buffett Says To Do With Your Money This article originally appeared on 5 Top US Housing Markets for International Homebuyers — Should You Buy There, Too?
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15 hours ago
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Housing starts plummet to 5-year low. That could be a good thing for home buyers.
The numbers: Construction of new homes fell 9.8% in May, as builders pulled back amid waning demand from home buyers. Housing starts fell to a 1.26 million annual pace from 1.39 million the previous month, the government said. The annual pace refers to how many houses would be built over an entire year if May's rate of construction were to continue. 'I prepaid our mom's rent for a year': My sister is a millionaire and never helps our mother. How do I cut her out of her will? 'I'm at my wit's end': My niece paid off her husband's credit card, but fell behind on her taxes. How can I help her? Israel-Iran clash delivers a fresh shock to investors. History suggests this is the move to make. 20 companies in the S&P 500 whose investors have gained the greatest rewards from stock buybacks I'm 75 and have a reverse mortgage. Should I pay it off with my $200K savings — and live off Social Security instead? The pace of home building is down to the lowest level since May 2020 — during the peak of the COVID-19 pandemic. New-home construction is down 4.6% from the same period a year ago. Building permits, a sign of future construction, also fell 2% from the previous month to a 1.39 million rate. Builders have slowed down the construction of new homes primarily due to a pullback in buyer demand. Rising inventory levels and weak buyer demand have resulted in homes sitting longer on the market. That could be welcome news for buyers struggling with affordability challenges. More builders are cutting prices on new homes to encourage buyers. In June, 37% of home builders cut prices to boost sales, the National Association of Home Builders said. That's the highest share since at least 2022, when the lobbying group began tracking the data. Read more: More builders slash prices as home buyers stay away from the housing market At the same time, 'builders are operating in a very challenging environment and it showed up in the May construction data,' Danielle Hale, chief economist at told MarketWatch. 'With tariffs raising materials costs and immigration policy likely worsening labor shortages, the supply side of the equation is difficult and coupled with an environment where demand for new construction homes is weakening as the number of existing homes for sale grows,' she added. ( is operated by News Corp subsidiary Move Inc.; MarketWatch publisher Dow Jones is also a subsidiary of News Corp.) Read more: Key details: Single-family construction was nearly flat, growing just 0.4% in May from the month before. Multifamily construction, on the other hand, fell sharply by 30.4%. The pace of construction was uneven across the U.S. New-home construction grew in the West by 15.1%, but fell across the rest of the nation. The sharpest fall in new-home construction was in the Northeast, which saw a 40% drop. Permits, which indicate future home-building activity, were also down in May. Permits from builders to construct single-family homes fell by 2.7%, while permits to build multifamily homes rose 1.4%. The negative housing data was 'not entirely surprising,' Odeta Kushi, a deputy economist at First American, wrote on social-media platform X, because builder confidence has been souring. Sentiment among builders has dropped sharply, due in part to weak buyer demand. 'Builders are doing the market equivalent of the 'get me out' trade',' Stephen Stanley, chief economist at Santander U.S. wrote in a note. 'They are slashing new production, while, at the same time, offering increasingly aggressive incentives to sell their inventory.' Read more: Home sellers face an 'absolutely brutal' market that's tilting in buyers' favor Big picture: Home sellers are turning out to be the biggest losers in the current housing market — that includes home builders. Naturally, they're responding by pulling back. Sellers on all fronts are feeling the burn from the lack of sales. The spring home-selling season was a bust. Builders and homeowners who are selling their properties are cutting prices to encourage buyers, which is eating into their profitability. Buyers, on the other hand, are likely to gain power, based on recent trends in housing data. Even though new construction slowed, the number of homes that are being finished is still 'a fair amount,' Hale said. In May, the number of completed housing units grew by 5.4% across the nation, with single-family completions up 8.1%. 'This means that shoppers in the market for a new home will still have options in many markets and are likely to be in a good place to negotiate,' she added. Israel-Iran conflict poses three challenges for stocks that could slam market by up to 20%, warns RBC These defense stocks offer the best growth prospects, as the Israel-Iran conflict fuels new interest in the sector 'I'm 68 and my 401(k) has dwindled to $82,000': My husband committed financial infidelity and has $50,000 in credit-card debt. What now? My husband is in hospice care. Friends say his children are lining up for his money. What can I do? 'He failed in his fiduciary duty': My brother liquidated our mother's 401(k) for her nursing home. He claimed the rest. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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16 hours ago
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Graham Stephan Says Home Sellers Are Panicking About Dropping Home Values — but Should They Be?
Homebuyers might finally have the upper hand again in the U.S. housing market after years of being handcuffed by soaring prices and low inventory. The current market isn't exactly perfect for buyers, but it's definitely weakening for sellers — and some sellers are beginning to panic, according to real estate investor Graham Stephan. Read Next: Explore More: Whether you should start panicking depends on where you live. But as with anything related to money, you're better off staying calm instead of letting fear drive your decisions. Also see the six biggest challenges homebuyers could face in 2025 and how to avoid them. In a recent video posted to YouTube, Stephan said current trends in the U.S. housing market have sounded the alarm for Realtors and sellers across the country. 'For the first time since the great financial crisis [of 2008-09], the housing market has officially flipped and sellers are beginning to panic,' he said. 'As of now, there's an estimated 34% more homes for sale than there are offers. Sellers outnumber buyers by a record 500,000, which is the largest imbalance on record.' Stephan also said the U.S. is in the early stages of a buyer's market, where sellers are forced to negotiate down rather than commanding top dollar. 'Homes are sitting on the market for longer, and in 61% of the U.S., prices are starting to drop quite dramatically, depending on where you live,' he explained. Check Out: There's no question that the housing market has undergone a transformation in recent months. Pending home sales decreased 6.3% in April, according to the latest data from the National Association of Realtors (NAR). All four U.S. regions saw month-over-month losses in the number of transactions as many buyers continue to sit on the sidelines. 'At this critical stage of the housing market, it is all about mortgage rates,' NAR chief economist Lawrence Yun said in a May 29 press release. 'Despite an increase in housing inventory, we are not seeing higher home sales. Lower mortgage rates are essential to bring home buyers back into the housing market … Home buyers in nearly every region of the country are in a better position to negotiate more favorable terms.' For home sellers in some markets, those terms could mean selling for a lot less than they could have a year ago — which is why many are panicking. 'There will be more price reductions that are going on, and more willingness to sell at a lower number, especially in the next couple months. We've definitely seen people who have taken losses,' Jeff Lichtenstein, president of Echo Fine Properties, told The Wall Street Journal. Despite the shift from a seller's to a buyer's market in some parts of the country, many sellers still hold the upper hand. A report released earlier this month by Redfin noted that more than one-quarter (28%) of U.S. homes are selling above the asking price. That's down from 32% a year earlier and represents the lowest level for this time of year since 2020, but it still shows that there are pockets of the country where sellers can still earn a nice profit. Overall, however, the median sale price has been slipping below the median list price in most of the country. That's a big change from a few years ago, when the median sale price was typically much higher than the median list price. On the bright side, median sale prices are only about 7% below list prices — and in many cases, those list prices are well above what sellers originally paid for the home. More From GOBankingRates 10 Used Cars That Will Last Longer Than an Average New Vehicle This article originally appeared on Graham Stephan Says Home Sellers Are Panicking About Dropping Home Values — but Should They Be? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
