18/03/2008
In a rapidly changing money and mortgage market clients are rightly asking: “Can I still get the mortgage I need?”
Press stories of US banks being bought at knock down prices, UK mortgage lenders tightening criteria and house prices reducing abound. Connells Survey & Valuation reports mortgage approvals for house purchase fell in February 3.5% compared to January but fell 40.5% compared to February 2007. Halifax announced that house prices are continuing to slow – down 0.3% in February taking the annual rate of house price inflation down from 4.5% to 4.2%. The average UK home now costs £196,649.
Lenders are also scaling back their criteria – very hard to get 100%+ loan to value lending and sub prime.
Whilst it is getting even harder for first time buyers there are some options – joint purchase with a partner, friend or family member – it is important to work closely with a mortgage broker. This is more relevant than ever as the products on offer from lenders change daily but the broker will have access to on-line search tools to make sure up to date information is always available.
Finally, we are still seeing fixed rates rise and it is increasingly important for mortgage holders coming to the end of initial rate periods to consider their options. Rather than leaving it too close to the renewal date (when you would, by default, go onto the lender’s standard variable rate) we recommend you seek the advice of a mortgage broker several months ahead of time.
March 2008