The mortgage market has been on a downturn for almost a year now with a slump of 19% from last May. It has been particularly bad news for first time buyers as they have struggled to get a mortgage in today’s hostile financial market. Mortgage lending was £25.5 billion which is 19% down from last May’s figures of £31.5 billion.
Some lenders have increased their prices and rates which has meant that customers are finding it increasingly hard to find deals that were anything like the deal they originally took out. Lenders have increased interest payments and arrangement fees on a two year fixed loan by £1300 in just six months.
The increase in prices has meant looking for a remortgage is extremely hard and homeowners are looking for a competitive deal. Prices are unfortunately unlikely to steady because as the financial situation of the economy worsens, lenders will have to alter their deals which have been shown by lenders changing their rates up to 19 times since January.
The Bank of England introduced a new £50 billion Special Liquidity Scheme to try and improve the state of mortgages. They hoped it would persuade lenders to cut rates which would encourage customers to get on the property ladder again. Unfortunately, the benefits of this project are yet to be seen and it is expected that the mortgage market will remain stagnant for the next few months.
It is hoped that the new scheme will improve the mortgage market and deals such as offset mortgages will become popular again. Until then find the best deals around by shopping online and comparing the various lenders and the offers.
As mortgages go through a slump the new Liquidity scheme will try and revive it. There are many deals such as offset mortgages to consider and when the time arrives when you have to look for a remortgage , shop online to find all the best deals.
