272014Oct

Better Mortgages May be Coming!

After a reduction in the level of mortgage lending during the summer months, Mortgage Providers are expected to make their products more attractive in the fourth quarter to win back lost market shares and volumes. This is good news for both first time buyers and for those seeking to move up the property ladder.

Following the introduction by the regulators of curbs on loan to income limits, a cap on higher mortgages and new affordability criteria, secured credit lending during the third quarter has reduced significantly. As a consequence and perhaps unsurprisingly, there are now indications that the rate of house price growth has slowed according to the latest survey from Nationwide Building Society.

A side effect of this situation is that Mortgage Providers are missing their volume targets and many prospective homeowners will have been disappointed because they have been unable to get the loans which they need. There are also reports that house buying chains are taking much longer to complete because of the increased responsibilities which lenders have for verifying their applicants’ income and expenditures.

Encouragingly for anyone seeking a mortgage, according to the Bank of England, over the remainder of this year, Mortgage Providers will be keen to move back towards their lending targets. In order to achieve them, they are expected to offer better deals to their customers.

The improved terms are likely to be via lower interest rates and product enhancements which are already reported to have included free ipads and contributions towards council tax bills.

In order to keep informed about the changing conditions in the availability of residential and buy to let mortgages, it is best to keep in contact with a whole of market mortgage broker like Bower Mortgages who have access to the latest mortgage news from all the leading lenders. Bower can help also householders who are seeking a second mortgage or secured loan.