First-time buyers will see more liquidity in the mortgage market
The Bank of England has forecast an increase in the number of deals requiring relatively small deposits which should bring more first-time buyers into the UK property market. This has been one of the major problems over the last few months, the requirement from many mortgage lenders that significant deposits are placed down before any mortgage agreement can be entertained. Whether or not this has reduced buyer interest in the short term is debatable because political and economic factors have also come into play.
Even though there has been an increase in the number of mortgage deals available, up to 90% of a property's value, there is still much more scope for growth in the short to medium term. We could see something of a golden triangle appearing in the UK property market in the latter part of 2010 with political issues, economic issues and mortgage liquidity issues all potentially on the verge of being sorted out.
Whether this will come in time for the UK government to push for re-election at the next general election remains to be seen as the economy will be the focal point as we move towards D-Day - which many expect to be in early May.
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