Mortgage lending is improving says expert
August 24, 2010
Terms and conditions offered by banks on mortgage deals have improved significantly, in the past few months, according to one industry expert.
Stuart Law, chief executive officer of Assetz, said the maximum improvements were obvious on homebuyer products offered by customers.
His comments follow from recent statistics published by the Council of mortgage Lenders (CML), which revealed that total mortgages lending had grown by five per cent in July, when an estimated £13.6 billion were issued to clients.
The figures are better than those recorded the month before in June when mortgage lending grossed to £12.9 billion.
However, these figures are still down from those recorded the year before when business peaked to £14 billion.
Recent data made public by Zoopla.co.uk also indicates that at least 32 per cent of houses available for purchase in the UK have had their asking prices reduced at least once since being listed for sale.
Properties have seen their prices drop by an average 6.1 per cent according to the website. In total, house prices have had £1.5 billion slashed off their asking prices, according to Zoopla.co.uk.
Recently, the Yorkshire Building Society also announced that it had reduced the rates of its mortgage products for house-hunters with a deposit of 15 per cent.
Chris Smith, senior product manager for mortgage at the society, said: "Our fixed-rate deals offer peace of mind when it comes to mortgage repayments for those who are concerned about possible future interest rate rises."
Borrowers would now be able to access the three-year fixed rate mortgage deal at 4.59 per cent by paying a booking fee of £495.
The society is also offering a tracker-based mortgage product at 3.49 per cent, which it tracks at only 2.99 per cent above the Bank of England base rate.
This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.