News: The Eurozone, Mortgages and what to expect in 2012
The last few weeks have seen unprecedented activity in Europe with the Eurozone under threat if the debt crisis can not be brought under control. This has made the banks nervous as the spectre of a second credit crunch is being talked about. Wednesday 30th November saw central banks of some of the worlds largest economies announce a plan to ease tension by assisting commercial banks in getting access to dollars. This is expected to filter down to business and households to make it easier to obtain finance. The stock markets have reacted favourably to the news and share values jumped significantly within 24 hours.
How the recent events will effect mortgage finance will unfold in the next few months. The market does not expect a significant reaction and the volume of lending is expected to be roughly the same in 2012 as is this year....approximately £135 billion.
The recent initiative launched by the Government will certainly help First time buyers purchase a brand new property with a low deposit. From Spring 2012, the Government and house builders will provide added security to allow lenders to advance 95% of the property value at rates typically reserved for loans up to 80%. In certain cases this can be between 1.5% and 2% less than current rates. As an industry, we have requested that this be broadened to allow a similar arrangement for all first time buyers, not just those buying brand new properties.
One area that has seen significant growth in the last 12 months is buy-to-let mortgages. Woolwich recently released a competitive product that was oversubscribed five fold in the first week! Rental yields have increased in the last 12-18 months as demand has outstripped supply.
For more information or to answer any queries you have on how this will affect you, contact Curchods Mortgage Services 01483 479070 or email mortgages@curchods.com or click here
Christopher Pain
Director - Curchods Mortage Services
We may charge a fee of up to 1.5% of the loan amount for arranging your mortgage. The precise amount will depend upon your circumstances, but a typical fee is £295.
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