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Mortgage Figures Show Improvement

13.04.10

The latest figures from the Council of Mortgage Lenders, (CML), showing a modest improvement in the number of loans month-on-month is a welcome sight. What is more striking is the fact that loans for house purchases have increased by 49% year-on-year, albeit from a low base.

Given the amount of activity we have seen in the last few weeks, I would expect to see this figure increase further in the coming months as the traditional Spring uplift filters through.

Taken together with the latest report from the Royal Institute of Chartered Surveyors, (RICS), that says that the number of sellers has hit the highest level since May 2007 it would seem that a healthy property market is returning.

However,  the fact that many people seem a little non-plussed about the forthcoming General Election has caused a fair amount of uncertainty in the property market, which means we may see figures tail off slightly in the immediate run-up and aftermath of the election.

The good news, however, is that competition is returning to the market and there are now some very competitive rate offerings especially where fixed rates are concerned which are starting to attract remortgage customers back into the market. With 2 year fixed rates now available from as low as 2.98% and with the lowest Bank Variable Rate at 2.5% it is more than realistic to expect that rates will have to rise by more than 0.5% over the next 2 years.

Once the election, and the World Cup, is out of the way, whilst I do not expect activity to jump significantly, I do expect moderate growth in activity for the remainder of the year as long as mortgage funding remains no less available than it is at present.

No doubt the recent changes in stamp duty for First-Time Buyers will assist and it is this key demographic that needs to be nourished in order for the housing market as a whole to flourish.

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Andrew Montlake

Written by Andrew Montlake

Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994. As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company. As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking. Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.

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