|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    25th of February 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Mortgage News feed Mortgage News

All Financial News feed All Financial News

Growth in mortgage market at two-year low

Bookmark and Share

by Jan Harris
Growth in mortgage market at two-year low

Growth in the mortgage market has slowed to its lowest level since July 2010, according to Connells Survey and Valuations’ latest Housing Market Activity Report.

Although the total number of residential valuations increased by 16 per cent last month, this represents an increase of just 2 per cent on a year-on-year basis.

The number of first-time buyer numbers increased by 19 per cent in June, but this is 1 per cent lower than figures for June 2011.

John Bagshaw, Connells’ Corporate Services Director, said: “Despite making a short-term improvement after the post-stamp duty lull, there are signs that the mortgage market is tightening.”

There was also a fall in remortgaging, with the number of valuations for remortgagors 6 per cent lower in June 2012 than the previous year.

However, compared with May 2012, this represents a 13 per cent increase.

With the rental market booming, it isn’t surprising that Connells reported an increase in the number of buy-to-let investors, with a 16 per cent increase compared with June 2011.

There was also a 32 per cent increase in buy-to-let remortgages compared with a month ago.

Mr Bagshaw highlighted the importance of the government and Bank of England Funding for Lending Scheme to the property market.

“If it proves successful, lenders will be able bypass increasingly expensive wholesale markets, boosting the supply of finance and giving the valuations and wider mortgage market a shot in the arm,” he said.

Under the Funding for Lending Scheme the Treasury is expected to make £80bn available for lending.

The scheme, which will be administered by the Bank of England, is designed to make more cash available for lending to both businesses and households.

It is hoped that the scheme will make it easier for potential house buyers to secure a mortgage at a better price than is currently available.

Discuss this in the Finance Markets forums

Story link: Growth in mortgage market at two-year low

News posted: July 6, 2012

Financial Services:

Related financial stories to: Growth in mortgage market at two-year low:
Previous: «
Next: »

Visited 1975 times, 1 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: ,