Have mortgage lenders finally got the message?
Over the last few days we have seen a number of building societies stepping up to the mark with regards to mortgage lending in the UK and today we saw Halifax offer up to 0.5 percentage points off future mortgage arrangements. On the surface it would seem that mortgage lenders in the UK have finally "got the message" but is this really the case?
While there's no doubt we have seen a short-term shift in competition in the UK mortgage arena, perhaps this is only because of the ongoing threat of a potential double dip recession in the UK. Have UK mortgage lenders finally realised that without increased liquidity in the marketplace, at competitive rates, there is little or no chance of an increase in demand for properties which will surely kill any potential recovery in the short to medium term?
The truth is that mortgage lenders in the UK will ultimately do what is best for them taking account of market forecasts and the risk/reward ratio. The authorities may well try to steal some of the thunder from the mortgage lenders markets but ultimately the UK banking arena is very much a law unto itself and no government in the recent past has proved to be strong enough or sharp enough to challenge their power.
Share this..
Related stories
October lending to First Time Buyers was up by almost 50%
An annual report recently published by the Council of Mortgage Lenders (CML) showed that first time buyers returned to the housing market substantially during the month of October, with the value of loans rising by nearly 50% on 2012 figures. The CML report advised that loans to first time buyers during October totalled £3.7 billion, which showed a positive increase from September. Year on ye...
Read MoreGovernment announces stamp duty suspension
The government has unveiled new housing reforms, aimed at boosting the UK's slowing mortgage market.Among the proposals is a 12-month suspension of stamp duty for homes worth £175,000 or less.A "free" loans scheme for low-income households has also been mooted, along with a £1 billion programme to build cheap new social housing properties.The reforms come in the wake of gloomy new figures from t...
Read MoreMortgage affordability improves for first-time buyers
A report by the Halifax has given fresh hope to those looking to gain a step on the property ladder with news that affordability for first-time buyers has improved significantly over the last 12 months. At this moment in time nearly 40% of local authority districts in the UK are now affordable to those looking to buy their first property, against just 6% in 2007 and 24% in 2008/9. This is a signif...
Read MoreFirst-time buyers struggling to raise capital
Despite the fact that the headlines in the mortgage industry would indicate a general reduction in mortgage rates, it seems as though more and more first-time buyers are effectively being barred from the market. Over the last few weeks we have seen some eye-catching mortgage deals but upon further investigation they require deposits which can sometimes be as much as 40% of the property value. In t...
Read MoreAre foreign mortgage lenders entering the UK market?
While mortgage lending in the UK is down by 26% year-on-year and there has been a marked reduction in the number of mortgage lenders operating in the country, it would appear that foreign mortgage lenders are making a play for the UK market while it is at its weakest for some time. So what is going on?
Official figures show that while mortgage lending is down sharply in the UK on a...