Follow Us on Facebook Follow Us on Twitter Follow Us on Google+ Follow Us on Pinterest Follow Us on Tumblr Visit our YouTube Channel Subscribe to our Feed Subscribe via FriendFeed

Connect With Us

Additional Mortgages Issued To UK Residents

by Jim ONeil on July 26, 2011

in Mortgages

A recent change in the housing market is either a fluke or an indicator of the beginning of recovery. It is the trend of more mortgages being granted to residential buyers in the UK property market. Many people are hoping that this is an initial sign that the real estate market is bouncing back.

Experts are not in agreement regarding the prognosis.

According to the Council of Mortgage Lenders (CML), gross mortgage lending in June totaled approximately £12.6 billion. This is a 16 percent increase from May, when £10.8 billion was lent. However, it is still three percent lower than the June 2010 statistic, causing industry experts to be cautious when asked to predict whether things are on a long-term upswing.

Bob Pannell, chief economist at CML, said people are being held back from purchasing real estate due to strong price pressure, declining disposable income, and uncertainty in the employment sector. Another major factor is economic growth that can only be called disappointing.

However, there are strong demands for rentals, which should help offset the lack of home sales.

Phoebus Software Managing Director Paul Hunt views the increase in mortgage loans as a sign of improved lender liquidity. As lenders become more confident, they are being more competitive in their pricing. Mr. Hunt believes that low loans APR will continue for the remainder of 2011, allowing borrowers to find affordable mortgages.

In this time of economic uncertainty, lenders now seem to be trying to help homebuyers.

Though Mr. Hunt believes this effort is not enough to prevent stagnation in the UK housing market, he says it is a positive sign. E.surv Business Development Director Richard Sexton believes the June statistic is reflection only of lender efforts to meet mid-year lending goals.

His prediction that “suppressed activity” is on the horizon illustrates the disparity of thoughts on the topic.

Comments on this entry are closed.

Previous post:

Next post: