Amongst all the anecdotal evidence that green shoots are starting to reappear in the property market, continued statistics seem to suggest otherwise.
Research from the price comparison website Moneyfacts has found that there are only 102 mortgage products available to borrowers with a 10% deposit compared to over 3,100 in January 2008 - a reduction of 97%. The cost of borrowing has also risen - in January 2008 the average rate for a 90% loan was 1.2% over the Bank of England base rate whereas today it is at a staggering 5.73% over Base.
A further problem is that borrowers are also finding it extremely difficult to be agreed on these 90% deals. Lenders are only interested in A1 clients who have impeccable credit ratings and who fit a lender's criteria perfectly.
These and other factors have led to the Council of Mortgage Lenders (CML) reporting a 9% fall in mortgage lending in April and a 60% fall from the same time last year.
Whilst estate agents and surveyors believe the property market has neared stabilisation this lack of access to funds for all but the best quality and low "loan to value" borrowers will continue to hamper any quick recovery in the housing market.
Research from the price comparison website Moneyfacts has found that there are only 102 mortgage products available to borrowers with a 10% deposit compared to over 3,100 in January 2008 - a reduction of 97%. The cost of borrowing has also risen - in January 2008 the average rate for a 90% loan was 1.2% over the Bank of England base rate whereas today it is at a staggering 5.73% over Base.
A further problem is that borrowers are also finding it extremely difficult to be agreed on these 90% deals. Lenders are only interested in A1 clients who have impeccable credit ratings and who fit a lender's criteria perfectly.
These and other factors have led to the Council of Mortgage Lenders (CML) reporting a 9% fall in mortgage lending in April and a 60% fall from the same time last year.
Whilst estate agents and surveyors believe the property market has neared stabilisation this lack of access to funds for all but the best quality and low "loan to value" borrowers will continue to hamper any quick recovery in the housing market.
Posts
No comments:
Post a Comment