- What we thinking of current mortgage trends
These articles are our views of the current and future trends in the mortgage lending market.
Mortgages and Loans UK Financial Correspondent - 29 sept 2005
According to a report from retirement finance company specialists Economic Lifestyle more than half-a-million people are still paying off their mortgages after their retirement. For many a debt-free retirement is just a dream, with a substantial number living below the poverty line and scrimping on basics like food and heating. Economic Lifestyle managing director Mark Neal said that more people are being forced to pay off their mortgages beyond the State retirement age. The main cause is that falling endowment pay outs have led to shortfalls. Even those retiring early often have to pay mortgage instalments out of their company pensions.
New Houses Face a Challenging Time
David Pretty, chief executive of house builder Barratt, has warned that the housing market faces a challenging year and has called for another cut in interest rates to stimulate activity. He anticipates that there should be a pick-up in the autumn but it will be more subdued than normal. Another rate cut would be good for the economy as a whole and good for the housing market. Barratt's underlying pre-tax profits rose to £390m this year against last year's £367.7m, with the price of a new Barratt house rising 4% to £172,200. One in 11 of all the new homes built in Britain are now built by the company.
Security is Top Homebuyer's Priority.
According to research by the National Institution of Chartered Surveyors security is the main concern across the whole population, but when divided into groups according to age, sex and life stage, there are marked differences. Single women rate security as their main priority when looking for a new home, but single men vote for nightlife as their main driver. Single men even rank proximity to motorways higher than security. Housebuyers with children place schools as their main priority.
Lending Hots up in August.
Mortgage lending soared in August as Britain’s home buyers borrowed the most money in a month since July 2004. During August gross mortgage lending increased by 9% on July 2005’s figure to £27.5bn. While home buyers borrowed more than the previous month, the biggest increase was in remortgaging, which rose by 15% to £11.7bn, according to the Council of Mortgage Lenders. The Council believes the increased remortgage lending was helped by lower interest rates, which encouraged existing home buyers to switch to cheaper deals.
Million Pound Houses Fall
Sales of million pound properties fell by 26% in the first six months of 2005, compared to the same period last year. In the first half of the year 1,508 properties costing more than £1m were sold, in contrast to 2,033 in the corresponding period in 2004. Research by Halifax estimates that 53,400 properties in the UK are now worth more than £1m , of which 33,000 are in London. Sales of expensive properties actually performed better than the whole housing market, since total sales of all properties dropped by 36% in the first half of 2005.
Please note: the views expressed in these articles are a personal opinion and in no way can be construed as financial advice
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This article was originally published on Mortgages And Loans UK - A well thought out directory of mortgage lenders, loan providers and advisors throughout the UKMortgages and Loans UK Financial Correspondent - 19 Jan 2005
As expected by leading mortgage analysts interest rates remained at 4.75% after a meeting of by the Bank of England's Monetary Policy Committee (MPC.) This is now the sixth month in a row that the Bank has voted not to change interest rates ...
Mortgages and Loans UK Financial Correspondent - 17 Dec 2004
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Mortgages and Loans UK Financial Correspondent - 22 Nov 2004
A growing number of economists think British interest rates have peaked but the majority still expect the Bank of England to raise rates at least once more in coming months according to a Reuters monthly poll. This will have important conseq...
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