Is liquidity returning to the mortgage market?
The headlines tomorrow will be dominated by the decision to maintain UK base rates at 0.5% but there should be some good news from the mortgage market. It has been revealed that the average two year fixed mortgage rate has fallen to the lowest level since July 2003 with a 75% loan to value mortgage now available at around 4.01%. This is sharply down from the 4.35% figure seen in February and appears to indicate a return of liquidity to the market place.
Standard variable mortgage rates have also fallen to around 4.03% against 4.38% in February, yet another positive sign for the UK property market. There are now significantly improved hopes that a return to more traditional levels of liquidity in the mortgage market should see more interest in UK property and hopefully curtail the slide in property prices.
As we have covered on a number of posts of late, there have been some significant differences in properly price reports with a recent Nationwide report indicating a rise in prices while a Halifax survey indicating a further reduction in March. However, when you take into account these reports together with an improvement in liquidity there would appear to be at least some hope for the future.
Share this..
Related stories
Suez Pull Out Of Bid Talks With British Energy
As news that French utility giant Suez has pulled out of takeover talks with British Energy filters into the market it seems that the bidding war which many analysts had hoped for may not happen. While Suez had said previously that the ongoing merger with Gaz de France was their main priority at the moment there were hopes that they would table a bid for British Energy. That now leaves French po...
Read MoreDeflationary pressure hits the Eurozone
As deflation hits the Eurozone for the first time since its introduction in 2009 there are fears for the short to medium term. The inflation figure for May came in at 0% but the figure for June has come in at -0.1% which has started alarm bells ringing within the EU. A mixture of lower energy costs, lower food prices and lower demand in general has introduced a significant about of competition int...
Read MoreLloyds bank set to announce a £23 billion fundraising
Lloyds bank is rumoured to be on the verge of announcing a £23 billion fundraising which will see investors inject around £12 billion into the business and a further £11 billion would be raised through the issue of new loan capital to replace existing borrowings. All in all, the UK taxpayer would be expected to inject a further £5 billion into the operation because of its 43% stake in the enla...
Read MoreHBOS Tries To Woe Shareholders
In a move which is designed to make it as easy as possible for shareholders to trade their rights shares in the forthcoming £4 billion fund raising, HBOS has announced plans to offer a free dealing service. The bank seem to be covering as many angles as possible to ensure that shareholders have as fewer reasons as possible not to seriously considering taking up their entitlement. The move comes...
Read MoreIf you don't ask you won't get!
While the UK financial sector has been in meltdown over the last 18 months there are signs of recovery in the property sector, credit cards and the mortgage market. However, even though we are seeing the injection of competition in these particular areas it appears that many UK consumers are still afraid to ask for the best deals. Remember, if you don't ask you won't get!
It is wort...