During the current economic climate the team at Adverse.Online are putting together a monthly snapshot of the housing market activity levels and crucially, what example rates are available for bad credit mortgages, so as to give our customers as much timely information as possible.
Interest Rates - Increasing
With the UK economy still experiencing high levels of inflation throughout 2023 so far, the Bank of England has raised the base rate from 3.50% in January to 4% in February, 4,25% in March then on to 4.5% in May and finally 5% on June 22nd.
House Prices - Falling
House prices fell by -0.1% in May, now down -3.4% on an annual basis according to Nationwide. While the rate of falls has been softening in recent months, the recent spike in mortgage rates will continue to put downward pressure on pricing and activity.
Mortgage Approvals - Falling
Whilst December 2022 through to March 2023 saw some growth to the number of mortgage approvals, April interrupted the general trend and it remains to be seen how the additional rate rises in May and June will impact the level of approvals.
Mortgage Completions - Falling
Mortgage completions are at about 77% of the pre-covid averages heading into July 2023 which reflects the drop in mortgage approvals over the winter, which are now feeding their way into completions figures. All things being equal, this would be expected to fall further given the lower rate of new approvals since April.
Availability of Mortgage Products - Falling
From the May and June rate rises, there has been a drop of close to 5% in the available mortgage products as lenders take products offline in order to re-evaluate and reprice.
Indicative Rates for a Bad Credit Mortgage
From our panel of bad credit mortgage lenders, we have seen some interest rate increases and some simplification of products.
However we are still able to provide products within touching distance of the high street and also at LTVs up to 85%.
From our panel of bad credit mortgage lenders, we have seen the following products:
1.Rates from 6.34% up to 75% LTV*
2.Rates from 6.95% up to 85% LTV*
*Interest rates available as at July 1st 2023 are subject to change, or withdrawal at the lenders discretion. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
Adverse Online is a fully online bad credit mortgage broker offering the convenience and speed of online mortgage application completion and processing but with the quality assurances you would expect from a mortgage broker authorised and regulated by the Financial Conduct Authority.
Whether you want to apply for a Bad Credit First Time Buyer Mortgage , Bad Credit Home Mover Mortgage or a Bad Credit Remortgage , we have a range of adverse credit mortgage products for you and an initial decision in principle can be achieved in less than 15minutes.