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Wednesday, April 27, 2011

A brief look at the UK mortgage market: a current snapshot

The UK mortgage market has had some big ups and downs in recent years, but where is it at the moment?

Here, we're going to take a look at some of the latest statistics from the Council of Mortgage Lenders (CML) to see how mortgage lending has fared recently.
Latest statistics for the mortgage market: February 2011
Figures released on 8th April 2011 revealed that mortgage lending saw a slight rise in February after January's 'downbeat' lending total.

A total of 32,300 loans for house purchase were approved during the month, worth £4.6bn. This was 8% higher by volume and 5% higher by value than January's figure. It was, though, 12% lower (by volume and value) than in February 2010.

There was also a rise in remortgaging during February - with the number of deals approved moving up from 23,200 to 24,300. This was 5% higher (in volume) than January and 3% higher in volume (but 3% down in value) from the same month a year earlier.

What was the market like for first-time buyers?

Just like they did in January, first-time buyers (on average) borrowed 80% of their property's value in February. They borrowed over three times their income - which is actually the lowest multiple since August 2009.

A little advice for first-time buyers:
It's important to remember that taking out a mortgage is a serious financial commitment - in that you'll be committing to your debt for a long period of time… and if you fail to repay it, the consequences can be serious (for example, your home may be repossessed). However, if you do start experiencing financial problems, seeking debt help and advice early on could really help you address the problem effectively.

What did the CML say about February's figures?

Chief economist at the CML, Bob Pannell, said: "The February fall in lending compared to last year was despite the fact that lending in the early months of 2010 was itself depressed following the end of the earlier stamp duty concession."

So, to conclude, the latest figures suggest that the mortgage market could be showing some signs of stability - but it's too early to make any firm predictions just yet.


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1 comment:

how to go bankrupt said...

Tough times ahead for BTL. Not sure it will be viable for smaller landlords.