30 July 2013 | I-Am-The-Agent | 0 Comments
Finally, there is some positive news for those seeking new mortgages. Finally the tide has turned and the banks are not being so stringent when it comes to the types of loans that they are offering.
If you’ve been following along with the news in this area, you may recall that at the end of May the Bank of England confirmed our experience that lending to individuals has increased and this means for mortgage borrowers too.
In fact, it’s went up by £1.4bn – whereas it was at £1bn a month over the six months prior to April 2013. Mortgage lending by itself is up by £0.9bn.
So the good news this month is that mortgage availability has been boosted by the banks, along with lowered borrowing costs. This means that they could well increase the supply of riskier loans. According to the central bank – it’s the banks who are driving this as they seek to secure greater market share.
With the new government program ‘Help to Buy Scheme’ to help home buyers being put into place by George Osborne, this equates to higher loan to value ratios of mortgages being offered. However the Bank of England Deputy Governor Paul Tucker has warned that this should not be a long term subsidy, but something short term or it would affect the stability of the economic recovery.
The ‘Help to Buy Scheme’ offers equity loans to buyers and is a key part of the government’s efforts to boost the availability of mortgages.
Combined, these figures suggest an upturn in the property market. Nationwide Building society reported an increase of 0.4% in house prices for May along with a comment on ‘reasons for optimism’.
Let’s see what happens over the next few months, however summer is the season for selling as every property looks at its best. If you want to market your private property to thousands of online viewers, sign up to sell your property online now for our special deals quoting ref ‘Summer Offer’ and we will throw in a FREE EPC!