More Pounds Becoming Available Within UK Housing Market
Possible signs of more credit availability are surfacing due to improving mortgage rates, and more enticing loan to value products coming to market, according to some of the latest research. This will not only assist first time buyers, but those seeking to remortgage as well.
A prime indicator of the possibility for a fully functioning mortgage market to be within reach is the distance between the Bank of England base rate and the London Interbank Offered Rate. That gap has now narrowed to just 0.37, which says the possibility the market is closer to recovery is nearer rather than farther away.
Jennet Siebrits, with CB Richard Ellis, commented on the health of the market when the moment has come for more sustainability, saying: “Without a fully functioning mortgage market, the recovery will be uneven and unsustainable. Although there are signs that the mortgage market is starting to defrost, we are far from a full thaw.”
She remarked further, saying: “Mortgage rates are falling and the number of products on offer is increasing, but lending still remains muted and relatively expensive. New products are focused at the top end of the market and until deposit requirements relax, mortgages will remain the preserve of home buyers with significant equity.”
An estimated 200 new first time buyer products have come to market over the past twelve months. Yet, the average loan to value of those products is just over 75%, which still places most first timers on the outside looking in.