| Mortgage Update | | | | - Requirements to move! - Some people who may |
| According to several financial advisers whom I've | | | | have wanted to move house up to 12 months ago, but |
| spoken with today, the UK mortgage market is | | | | have been unable to for various reasons will now be |
| showing the first signs of recovery. Now I don't have | | | | considering if now is a good time to move, particularly |
| any stats to back this up in terms of a national trend, | | | | for those who are moving up the mortgage ladder. For |
| however it certainly seems that the signs are there | | | | those downsizing this is still going to be a difficult time. |
| that we could be finally at the point of recovery for | | | | - Increased pressure from the Government on the |
| the housing and mortgage market. | | | | banks which it has a substantial stake! Certainly |
| | | | Northern Rock, RBS and Lloyds will be under pressure |
| - Increased mortgage rates - Lending rates are being | | | | to ensure that they meet the lending targets which the |
| pushed up by several factors, including interest rate | | | | government has set, and there are certainly rumors |
| speculation. According to several bank treasury | | | | that some of the leading banking organizations are |
| reports which I have seen over the past few days the | | | | being questioned why they are not delivering on the |
| Libor (London Interbank Offered Rate) or wholesale | | | | required targets! Lloyds has recently introduced it's |
| rate of money has started to increase. This will in turn | | | | 95% loan to value mortgage for first time buyers with |
| be passed onto the consumer. Therefore many of the | | | | additional security being achieved via parents savings |
| individuals who have been enjoying the historically low | | | | accounts! This will certainly work very nicely to sure up |
| rates of variable rate mortgages are now beginning to | | | | the Lloyds balance sheet which it is rumored has |
| consider the prospect of fixing, prior to the rates | | | | some potential long term funding gaps. |
| becoming to high. | | | | All in all, it certainly seems that there is a glimpse of |
| - The housing market could be opening out - With slight | | | | optimism in the market. As at the start of the article, |
| increases in house prices reported for the month of | | | | the financial advisers who I have spoken to certainly |
| May by Halifax, and increased number of mortgage | | | | seem to believe that this is beginning of the change. |
| approvals for the same period it is likely that the | | | | Let's hope that they are right, and we will back on |
| housing market will begin a slow but steady recovery. | | | | track before you know it! |