Archive for the 'Mortgages' Category

New figures from the Council of Mortgage Lenders show that mortgage lending in 2010 came to just £136.3 billion – down 5% on 2009. This is the lowest figure since the year 2000. This news won’t come as a surprise for those who attempted to obtain a mortgage in 2010, with many applicants reporting it to be particularly difficult to secure a reasonable mortgage – especially first-time buyers.

The CML also state that they expect the Bank of England base rate to rise sooner than previously thought due to the recent figures for inflation showing the figure rising from 3.3% to 3.7%. However the CML don’t believe the base rate will go above 1% before the end of 2011, nor 2% before the end of 2012.

As mortgage lenders continue to be very picky about who they will lend to and how much they will lend, more and more people are resorting to renting to resolve their accommodation needs. With the best deals only available to those with 25%+ deposits, potential first time buyers, in particular, are finding it very difficult to get on to the ladder. There are also some who are deliberately waiting as property price continue to slowly fall.

Fewer people buying houses has consequently caused an increase in demand for rented properties, which has enabled landlords to increase rent levels. Rent has now increased for nine months in a row, with the average figure for October being £691.

Jeremy Lead, RICS spokesperson, said ?The lettings sector has become increasingly strong over the past nine months, in contrast to the housing market which continues to slow?. This situation is expected to continue for the next three months at least.