Improved mortgage criteria starting to help property prices to increase
As bridging finance brokers who provide facilities throughout the UK we have a good view of the country’s property markets and are quick to notice signs of growth and decline. In recent months it has been quite noticeable that the UK property market is becoming more buoyant and property sales are increasing and becoming a bit easier to complete. We are having more requests for bridging finance in order to facilitate speedy purchases as clients are concerned about losing the property that they want to someone else. Not so long ago a property was very lucky to have one interested party, now many properties on the market can have several interested parties. This has also led to an increase in the number of offers that have been accepted by a vendor being later rejected following an increased offer from another interested party.
It is noticeable that a year ago our customers were contacting us in order to find them finance in a market place where finding the required funding was proving to be difficult. More recently we are being contacted by people looking for quick funding in order to secure their desired property before it is purchased by someone else.
During the past week it has been confirmed by mortgage providers and estate agents, that the number of properties being purchased by first time buyers is finally on the increase. This has helped the average house price in the UK to show a healthy increase, which is hugely significant because for a long time they have been decreasing. Parts of London have shown the strongest growth, but this is hardly surprising when many parts of London are unique in that although property prices slowed, they did not in fact actually fall unlike most other parts of the UK during the past 4 or 5 years.
No doubt helped by some of the Government’s economic policy, the lenders are beginning to be a little bit more flexible with regards to lending criteria. For example some lenders are once again offering 90 per cent mortgage facilities. The relaxed lending criteria has meant that more first time buyers are now able to get onto the property ladder, increasing the number of sales and helping to stimulate property prices.
Other types of lending facilities have also shown signs of being more flexible. This includes the secured loan providers, some who have significantly increased their maximum loan sizes, decreased rates and increased their loan to values. Also there have been some significantly improved credit card deals being advertised recently.