According to some UK lenders, recent housing market figures are promising signs and may even indicate a positive trend. Extremely low loans APR and the variety of loans bank offered have increased market activity. Low property prices have led many people to become landlords and the remortgaging market is also bustling with activity.
With housing prices so low, the buy to let market is exploding. Those who are already homeowners are taking advantage of remortgaging deals. During August alone, over 34,000 UK remortgage loans worth a total of 4.2 billion pounds were approved. People who have a large amount of equity and who can make large deposits are upsizing their residences.
According to information recently published on the MoneySupermarket Web site, fixed two-year mortgage loans APR had dropped to a record low. Competition amongst lenders is heated and should remain this way until news of a base rate increase reaches the public. Council of Mortgage Lenders Director Paul Smee stated that lending in August “showed welcome signs of life” despite concerns coming from the euro zone.
Despite the general economy being gloomy, individuals with mortgages are benefitting from the low interest rates, said Mr. Smee. This trend reaches beyond the borders of England to Scotland, according to Mark Dyason with Edinburgh Mortgage Advice. He commented that the mortgage market in that country is also starting to gain momentum as the “Mexican standoff” between Scottish sellers and buyers has ended.
People are seeing the number of cheap loans available and are finally taking steps to become homeowners, despite an otherwise repressed economy. In Scotland, Mr. Dyason attributes some of this to the fact that sellers have become more realistic. He notes that while the UK is not yet on stable economic ground, the latest mortgage statistics indicate movement in the proper direction.