BBA confirms increased mortgage lending in May
The British Bankers Association (BBA) has today confirmed that May saw an increase in mortgage approvals compared to April and March. When you consider that members of the BBA account for around 75% of new mortgages in the UK the indication is that UK mortgage lending continues to recover. So how will this impact upon the UK property market?
While there is no doubt that property prices and property markets have been influenced by the economic situation in the UK, there is also no doubt that a lack of liquidity in the mortgage market is holding back many potential buyers. New buyers have been effectively barred from the market up until lately due to ever tougher lending guidelines from UK mortgage lenders aimed at reducing their risk in the short to medium term - which has inadvertently affected the first-time buyer market.
Despite the fact that the UK government announced a banking levy yesterday which is expected to raise around £2 billion a year many believe that the UK mortgage arena will continue to grow and deals for first-time buyers should become more commonplace. Many unexpected the UK government to introduce a levy of around £5 billion a year but thankfully the lower level will allow mortgage providers to retain significant liquidity within the marketplace.
Share this..
Related stories
FSA to make lenders responsible for mortgage customer profiles
The Financial Services Authority (FSA) has today issued a statement proposing that future mortgage arrangements should only be entered into if the lender is convinced that the borrower will be able to afford the agreement in the long-term. Making lenders responsible for ensuring that borrowers are in a position to afford mortgage payments going forward may sound obvious, but is something of a sign...
Read MoreLib Dems: First time buyer scheme is just "tokenism"
The introduction of small grants for first time buyers has been dubbed tokenistic by the Liberal Democrats. Housing minister Caroline Flint and Gordon Brown announced this week that £3 million of public money will be made available to first time buyers equating a grant of £1,500 for 2,000 people. The money is intended to help them to afford to furnish their homes and to meet solicitor's f...
Read MoreCo-op pulls mortgage products
The Co-operative Bank (Co-op) has confirmed that its range of two-year fixed rate mortgages will be withdrawn from sale. According to a statement from John Barker, the head of mortgages at Co-op, the products will be pulled as of the close of business tonight. The bank will continue to offer its range of three, five, ten, and 25-year mortgages to both new and existing customers.The decision to wit...
Read MoreHalifax issues new mortgage tracker
Halifax has issued a new set of mortgage tracker options to the market but the increased margins on this product have attracted great concern from government and consumer groups. Halifax, owned by HBOS, was one of the mortgage lenders who withdrew their mortgage trackers from the market ahead of the last interest-rate reduction, another move which also attracted much disdain.
The ne...
Should your mortgage lender help you in times of trouble?
Confirmation that those who have fallen behind with their mortgage are receiving charges of £35 per letter and £150 per visit by a debt counsellor, have hit the headlines today. While it would be wrong to suggest that all mortgage lenders in the UK are charging such fees, they are definitely becoming more commonplace. So should your mortgage or remortgage lender help you in times of trouble?