Will the mortgage market ease next year?

Over recent months there have been mixed reports and opinions with regards to whether the mortgage market in the UK is likely to ease up next year, and whether people will stand a greater chance of being able to get a mortgage having experienced difficulties for the past couple of years since the global financial crisis and recession swept across the UK.

Some believe that the worst is over when it comes to the property and mortgage markets, and that whilst the market remains challenging after the chaos that the financial meltdown has caused lenders are starting become less stringent and are more relaxed over their lending rules. This comes after several years of severe restrictions that caused a mortgage drought in the UK and in other countries around the world.

However, despite the optimism of some industry officials there are many others that believe that the market will become even more challenging, with the coalition government cutbacks and concerns over jobs likely to affect the market. Many experts believe that people will find it increasingly difficult to get mortgage finance over the course of next year, and that it could be some time before things start to ease off and mortgage lending becomes more relaxed.

One industry expert said: “I don’t believe things will get any easier when it comes to mortgage finance in 2011, and if anything first time buyers could find things have become even more difficult as the banks struggle to cope with having to repay bailout money to the government.” She added: “First time buyers also still have the added pressure of having to raise larger deposits in order to get affordable mortgage deals, as well as the threat of interest rate increases next year that could make repayments less affordable.”

Tags: bailout money, world, finance, course, industry expert, mortgage lending, Many experts

September figures indicate that mortgage market will remain subdued

Industry officials have said that the mortgage lending figures that were recently released for September of this year indicate that mortgage lending levels are set to remain subdued for some time to come. Officials from the British Bankers’ Association said that a further fall in mortgage approvals in September was indicative of a continued slump in the mortgage sector.

September saw mortgage lending levels in the UK plunge to their lowest leve in ten years, and the number of mortgages that were approved also nosedived, falling to their lowest level in around eighteen months. The figures, which were released by the British Bankers’ Association, showed that net mortgage lending by the major banks came to around £1.6 billion for the month, which was its lowest since October 2006.

Industry experts have said that the figures that have been released seem to suggest that mortgage lending will continue to be slow and the market will remain subdued over the coming months. Officials have also said that potential buyers will remain cautious over the coming months which will further hamper the mortgage market.

Figures that were recently released by the Council of Mortgage Lenders mirrored the bleak outlook suggested by the BBA reports, and HM Revenue & Customs also released date showing that the number of property sales had also taken a hit. HMRC said that August saw the first significant property sales fall this year, with the sale of property said to have fallen.

In further bad news for the property market property prices are also set to fall further, with figures showing that they have already experienced another fall in September, which has taken the annual rate of gain down to just 2.6 percent.

Tags: mortgage lending, leve, market property prices, finance, mortgage, british bankers association, council of mortgage lenders, mortgage lending levels

Stamp duty holiday affects mortgage lending figures for January

It has been revealed in a recent report that the level of mortgage lending for the month of January has been badly affected by the end of the stamp duty holiday, which came to an end on 31st December last year. Read more

Tags: percent drop, mortgage, mortgage lending, stamp duty, duty holiday, advanced warning, council of mortgage lenders, stamp

Are banks becoming more generous with their lending?

A number of reports that have been released recently have suggested that mortgage lending amongst banks in the UK has been increasing, and whilst the past couple of years has seen lending becoming increasingly restricted recent figures have indicated that mortgage lending levels have increased to their highest in around fourteen or fifteen months. Read more

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Mortgage lending hits lowest level in thirty four years

According to a recent report mortgage lending levels last year hit their lowest point in thirty four years, with figures at their lowest since 1974. Read more

Tags: Mortgage broker, council of mortgage lenders, Mortgages, National Association of Estate Agents, wreak havoc

CML said mortgage lending fell again in August

According to officials from the Council of Mortgage Lenders mortgage lending levels fell in August, with the value of mortgage lending having fallen by 12 percent compared to July and by 36 percent compared to August of the previous year. The total amount of new mortgage lending for the month came to just £21.8 billion. This was the lowest level of mortgage lending since 2005 and the lowest level of mortgage lending in August since 2002. Read more

Tags: long house prices, economics, amount, industry, council of mortgage lenders, new mortgage lending, property transactions, mortgage lending

No change to mortgage crisis

There has been no change to the mortgage crisis in the UK despite government intervention, according to the Council of Mortgage Lenders. Officials from the CML have said that the problems in the mortgage industry are still ongoing, and the squeeze on credit and mortgages continues even though the government has pumped billions of pounds into the money market and has launched a £50 billion mortgage rescue plan that allows lenders to swap their mortgage assets for government bonds, which is aimed at restoring confidence amongst lenders and increasing liquidity in the mortgage sector. Read more

Tags: bank insurance, steady decline, special liquidity scheme, squeeze, Mortgages, change, credit, mortgage lending

Homeowners facing arrears advised to speak to lenders

Homeowners who think they are getting into difficulties with their mortgage repayments should speak to their lender as soon as possible, an industry expert has advised. Read more

Tags: credit, problem, council of mortgage lenders, Mr Clarke, option, mortgage lending, plan, mortgage payments

Mortgage lending ’strong’ in May

The traditional desire of Britons to purchase property in the summer months continued in May, the British Bankers’ Association’s (BBA’s) latest figures show.

Financial providers lent some £19.7 billion during the month, some eight per cent more than the same period in 2006.

The BBA cited strong re-mortgaging activity as well as the usual pattern of strong lending as a cause for the year-on-year growth.

Some 204,800 mortgages were also approved during May, some two per cent more than May 2006.

Credit card borrowing fell by £0.4 billion during the period, while personal loans and overdraft borrowing also declined by £0.1 billion.

David Dooks, BBA director of statistics, said: “Contrary to the recent stable trend, the banks‘ gross and net mortgage lending strengthened in May, reflecting an improved competitive position, rather than a general rise in mortgage demand across the market.”

He added: “And, because of strong approvals in May, the banks’ higher market share is likely to continue over the next couple of months.

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UK lending figures rise

Lending to individuals in the UK rose again in November, according to the Bank of England.

Figures show that there was an increase in all types of loans of £10.9 billion between October and November.

Credit cards, personal loans and overdrafts increased by £0.2 billion, while mortgages saw the biggest increases.

In total, November saw a £9.8 billion increase in mortgage lending compared to October, signalling a rise of 0.9 per cent.

“This is a very strong set of mortgage data. Mortgage approvals amounted to a near three-year high of 129,000 in November, while lending secured on dwellings amounted to a three-year high of £9.8 billion,” said Howard Archer of financial consultancy Global Insight.

Mr Archer said that unsecured borrowing “eased back” between October and November as consumers become more concerned abut their future financial situation.

“Elevated debt levels, higher interest rates, rising unemployment and increasing pension concerns mean that there is an increased need for many consumers to try and improve their finances,” he added.

He said that more and more people are switching to secured borrowing to finance their spending.

Tags: abut, mortgage, november, mortgage lending, overdrafts, consumers, Credit Cards