An Increase In Mortgage Lending – Is The Market Recovering?

There have been several signs of a healthy mortgage recovery recently, and in August this year the value of home loans issued has increased by over 30% year on year.

Over £16 billion worth of mortgages was issued last month alone. This is a 28% increase on 2012 according to the Council of Mortgage Lenders.

There have been fears that the Government help to buy scheme could result in a house price bubble, with an over inflated housing market and borrowers over borrowing much like they did before the credit crunch. This is especially worrying in London where prices have risen by 10% year on year. In addition, many lenders are offering very low rates and first time buyers are now creeping out to make a marked difference in the statistics.

Certainly our family mortgage business Alton Mortgages Ltd has seen a significant rise in mortgage activity over the last 12-month period. However, it is encouraging to see that the growth, though significant is not over heating. As I believe a housing bubble would be detrimental to our overall recovery, instead we need the upturn in house prices to be sustained and controlled.

bbc1

The Governments Funding for Lending and Help to Buy schemes have certainly played a role in boosting activity,  however as the details of Phase 2 of the Help to Buy scheme roll out today, it is becoming more apparent that although the scheme is focussed on helping people on the Property ladder, the interest rates will not be as competitive as first thought.

Those banks looking to join the scheme at the moment are limited and therefore do not wish to be inundated with workload, so I believe are deliberately keeping the rates on the high side. Six months from now when the scheme has settled in, I believe more lenders will join the plan and at that time you will see movement on the interest rates downwards.

Mortgage lending is on the increase and with the Help To Buy Scheme championed by the Government settling in, I see only more lending and more flow of business in the housing industry. If you are looking at property as a way to supplement your pension then you need to understand the best ways of using this increase in lending and property values on the rise. If you want to discuss how you can use these circumstances to your advantage then give me a call today and start to make a massive difference in your life and your retirement.

Gill Alton

Connect with me: Google+
Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for investors in the UK.

Alton Property Partners manage the entire investment process, from sourcing property at a discounted value, co-ordinating the Mortgage, arranging the refurbishment, right through to ensuring it is ready for the rental market.

The service is specifically aimed to support those who recognise the value of a UK investment portfolio, but lack the time, or knowledge to be able to invest for themselves because they are full time employees or Business Owners. With full consultation and comprehensive financial analysis, clients can be assured that their portfolio of strong yielding properties will be built to exacting standards and they will be kept up to date every step of the way.

Having been involved in property for 16 years Gill has built a personal portfolio for her family, and in addition to Alton Property Partners, runs a Property Mentoring Business, Venus Property Mentoring which focuses on supporting new investors onto the investing ladder. Having originally left the Corporate world to be a Qualified Mortgage Broker, Gill’s husband now focuses on their family Mortgage Brokerage in Maidenhead – Alton Mortgages.

More PostsWebsite

Alton Property Partners
6 Bramble Drive, Maidenhead BerkshireUKSL6 3NX United Kindom 
Gill@altonpropertypartners.co.uk •0845-095-5060

Leave a Reply